AI, ESG, and digital transformation: Unlocking Nigeria’s path to a trillion-dollar economy

Introduction
As Nigeria aims to become a trillion-dollar economy, strategic investments in artificial intelligence (AI), environmental, social, and governance (ESG) reporting, and digital transformation are expected to drive sustainable growth. The government has placed technology, innovation, and financial sustainability at the forefront of its economic agenda, positioning the country as a rising player in the global digital economy. The Minister of Communications, Innovations, and Digital Economy, Dr Bosun Tijani, recently emphasised the critical role of digital technology and financial sustainability in driving economic expansion.

A recent study titled “AI-Powered Carbon Accounting: Transforming ESG Reporting Standards for a Sustainable Global Economy” explores how AI, blockchain, and predictive analytics can enhance corporate sustainability and financial resilience. With 21 percent of Nigeria’s projected GDP growth expected to come from the information and communications technology (ICT) sector, these technological advancements will play a critical role in shaping the nation’s economic future.

The flaws in traditional ESG reporting and financial governance

While Nigeria’s economic ambitions are promising, challenges in ESG reporting and financial governance remain significant barriers to sustainable growth. Many businesses still rely on manual financial reporting systems, fragmented data sources, and outdated calculation methods, leading to inefficiencies and inaccuracies. Additionally, inconsistent regulatory compliance measures further hinder transparency and accountability, making it difficult to achieve long-term financial and environmental sustainability.

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These inefficiencies weaken investor confidence and create opportunities for misrepresentation, greenwashing, and regulatory non-compliance. Strengthening financial transparency and ESG accountability is essential to attracting foreign investment and fostering long-term economic stability.

Regulatory bodies have made strides in improving corporate accountability, but compliance challenges persist due to the complexity of sustainability frameworks and the lack of automated tracking mechanisms. As a result, AI-driven carbon accounting and financial data analytics are emerging as critical solutions for addressing these shortcomings.

AI, Blockchain, and IoT: The future of financial and sustainability reporting in Nigeria

The study highlights how AI-powered carbon accounting and financial analytics are transforming economic decision-making, investment strategies, and sustainability compliance.

AI-driven machine learning and predictive analytics enable businesses to monitor and optimise financial and sustainability performance in real time. Blockchain technology enhances financial integrity by ensuring tamper-proof financial reporting, ESG compliance, and investor transparency. Additionally, IoT sensors and digital taxation facilitate real-time tracking of energy consumption, emissions, and corporate tax compliance, fostering greater efficiency and regulatory adherence.

With these technological advancements, Nigeria can transition from reactive financial policies to proactive economic strategies, ensuring long-term stability and international competitiveness.

How AI is reshaping business and economic growth in Nigeria

Several companies and industries are already leveraging AI and ESG integration to enhance financial efficiency and drive economic growth. In the fintech and banking sector, AI-driven fraud detection and digital financial services are expanding access to banking, fostering greater financial inclusion. The energy and sustainability industry is utilising AI-powered carbon footprint analysis to implement green finance solutions and sustainability-linked investment strategies.

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Meanwhile, in the public sector and governance, AI-enabled taxation and fiscal policy management are improving revenue collection while minimising corruption risks, ensuring greater transparency and efficiency in financial administration.

These applications demonstrate AI’s potential to reshape Nigeria’s financial and economic landscape, ensuring efficient governance, corporate accountability, and long-term prosperity.

Challenges and policy recommendations for Nigeria’s digital transformation

While AI and ESG reporting present significant economic opportunities, several challenges must be addressed to ensure effective implementation. Regulatory frameworks need to be updated to support AI-driven financial reporting, ensuring compliance and investor protection. Data security risks pose a threat to AI-powered financial and ESG tracking systems, making robust cybersecurity measures essential. Additionally, high implementation costs for AI-driven carbon accounting systems and blockchain-based regulatory compliance tools present financial barriers for many businesses.

To overcome these challenges, Nigeria must strengthen financial regulations and ESG reporting standards, promote AI-driven economic strategies through public-private partnerships (PPP), and enhance digital infrastructure investments in AI and blockchain technologies.

Final thoughts: The road to Nigeria’s trillion-dollar economy

As global climate policies tighten and digital economies expand, Nigeria must embrace AI, ESG compliance, and digital financial solutions to secure its position as an economic leader. By combining strong financial governance, sustainability-focused corporate policies, and AI-driven investment and business strategies, the country can not only achieve the trillion-dollar milestone but also build a resilient, future-ready economy. The integration of AI, ESG, and digital transformation is not merely an innovation—it is the foundation for Nigeria’s long-term economic success.

Feyisayo Ogunyemi Michael is a distinguished, award-winning Chartered Accountant (ICAN) and a Fellow of the Institute of Management Consultants Nigeria. He is a researcher specializing in Sustainability Accounting, IT & AI-Powered Auditing, Carbon Accounting, Sustainable finance and renewable energy. He holds an advanced degree in Sustainability with a specialization in Energy & Finance and MBA- Accounting both from Eastern Illinois University, USA. Email: [email protected]