NECA urges policymakers, businesses to support SMES’ adoption of ESG standards

Adewale-Smatt Oyerinde, director-general, Nigeria Employers’ Consultative Association (NECA), has urged Nigerian policymakers, businesses, and financial institutions to support Micro, Small and Medium Enterprises (MSMEs) in adopting Environmental, Social and Governance (ESG) standards, describing sustainability as a critical driver of long-term business growth and competitiveness.

Speaking at the launch of the ESG Implementation Guide for MSMEs in Nigeria on Friday, the NECA DG said the guide was developed to help small businesses understand and implement ESG principles practically and cost-effectively.

According to him, ESG considerations have evolved from being optional corporate initiatives to essential requirements for businesses seeking relevance in increasingly competitive local and global markets.

He noted that investors, regulators, consumers and global supply chains now expect companies, regardless of size, to demonstrate responsible and sustainable business practices.

While large corporations often possess the resources and expertise to navigate ESG requirements, he said many MSMEs continue to struggle with understanding sustainability standards, reporting expectations and implementation processes.

To address this challenge, NECA partnered with the International Labour Organisation (ILO) to produce the ESG Implementation Guide tailored specifically for Nigerian MSMEs.

The guide, he explained, provides simplified explanations of ESG concepts, practical steps for integrating sustainable practices into business operations, and strategies for identifying ESG-related risks and opportunities. It also aims to position MSMEs for improved access to finance, investment opportunities and participation in global value chains, where sustainability compliance is increasingly becoming a prerequisite.

The DG stressed that ESG adoption should not be viewed merely as a compliance obligation but as a strategic tool for unlocking business value and strengthening resilience.

“Businesses that integrate ESG into their operations are better positioned to attract investment and financing and compete effectively in both local and international markets,” he stated.

He further emphasised that supporting MSMEs to embrace sustainability practices is vital for Nigeria’s broader economic goals, including inclusive growth, job creation and sustainable national development.

Beyond launching the guide, NECA will continue to support businesses through training programmes, advisory services, and strategic partnerships to deepen ESG adoption across the economy.

The association also urged government agencies, development partners, financial institutions, and private-sector stakeholders to create an enabling environment that encourages MSMEs to transition to sustainable business models.

The Director-General commended the ILO, members of the NECA ESG Advisory Board and consultants involved in the initiative for their contributions to advancing sustainable enterprise development in Nigeria.