Stakeholders advocate responsible AI adoption for ESG, data management

Industry leaders at the 2025 Company Secretaries and Registrars Forum, organised by the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), have emphasised responsible AI adoption in corporate governance and sustainability.

The forum gathered experts in governance, finance, and technology to discuss AI’s role in sustainable corporate practices.

Delivering the keynote address, Christopher Ogirri, Data Engineering Lead at KPMG Africa, emphasised that company secretaries and registrars play a vital role in ensuring compliance as AI adoption grows.

He noted that ESG reporting would become mandatory in Nigeria by 2028, following the Financial Reporting Council’s Adoption Readiness Roadmap.

Read also: Global Innovators move to strengthen artificial intelligence, sustainable development in Africa

Funmi Ekundayo, president of ICSAN, stressed the need to integrate AI into governance while ensuring ethical and secure usage. “Developing the right AI mindset is crucial for optimal corporate governance,” she stated.

Panelists explored AI’s impact on Environmental, Social, and Governance (ESG) reporting, regulatory compliance, and market surveillance.

Speaking at the panel discussion themed “Enhancing the AI Mindset in Delivering Sustainability Principles on Data Management and Governance,” Clifford Akpolo, Head of Communications and Partnerships at Nigerian Exchange Group (NGX Group), highlighted AI’s transformative role in data governance, ESG reporting, and compliance frameworks.

“AI is a strategic partner in governance. It enables real-time decision-making, enhances transparency, and ensures sustainable business practices. Organisations must embed AI-driven governance into their corporate DNA,” Akpolo stated.

Akpolo noted that AI-driven governance frameworks would soon become the norm, helping organisations mitigate risks. However, challenges such as cultural resistance, data integrity issues, and leadership buy-in remain. “For AI to drive sustainability, businesses must prioritise employee upskilling, cross-functional collaboration, and AI-first policies that align with corporate strategy,” Akpolo added.

Akpolo also highlighted AI’s potential in improving transparency and efficiency within Nigeria’s capital market, stating that AI-powered platforms could enhance market surveillance, reduce transaction costs, and provide personalised financial insights. “AI will redefine governance in capital markets by automating compliance processes and detecting irregularities early,” he explained.

Bamidele Oseni, Managing Partner at Caleb Consulting Uganda Limited, stressed the need for governance professionals to adopt compliance software and blockchain technology. “AI users must prioritise risk management, cybersecurity, and human oversight to ensure responsible AI use,” he stated.

Stakeholders at the forum projected AI’s role in predictive compliance for proactive risk management, AI-powered ESG tracking for real-time sustainability reporting, and carbon footprint monitoring to support corporate environmental goals.

Akpolo urged organisations to assess AI readiness and pilot small-scale AI projects for seamless integration into governance structures. “AI is shaping the future of governance and sustainability. Companies that adopt it responsibly will lead, while others risk falling behind,” he concluded.

Leo Okafor, Company Secretary at United Capital Plc, advocated for ethical AI committees to ensure accountability and compliance.

The ICSAN 2025 Forum reinforced the need for businesses to embrace AI-driven governance models while prioritising transparency, ethics, and regulatory compliance for sustainable growth.