NECA unveils Africa’s first ESG implementation guide for MSMEs

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The Nigeria Employers’ Consultative Association has launched what it described as Africa’s first Environmental, Social and Governance Implementation Guide for Micro, Small and Medium Enterprises, in a move aimed at strengthening business sustainability, improving competitiveness, and aligning Nigerian firms with emerging global investment standards.

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The guide was unveiled on Tuesday by the Chairman, NECA ESG Advisory Board, Femi Jaiyeola, during the 2026 Nigeria Employers’ Summit in Abuja.

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Jaiyeola described the initiative as a defining moment for Nigeria’s private sector, noting that MSMEs remain the backbone of the economy and require structured, practical tools to survive and compete in an increasingly sustainability-driven global marketplace. He said ESG had moved far beyond compliance obligations to become a central business survival strategy.

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“I think we have a milestone event today. We all acknowledge that Micro, Small and Medium Enterprises play a significant role in Nigeria’s economy. They constitute a large proportion of what drives our economy on a daily basis.

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“We also recognise the growing importance of Environmental, Social and Governance principles globally and in Nigeria. ESG has gone beyond being a mere tick-box exercise to satisfy regulatory requirements. It now presents enormous opportunities for MSMEs and for the country as a whole,” he said.

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According to him, the new guide was developed at a critical time when regulators, financial institutions, and global investors are increasingly demanding sustainability compliance from businesses of all sizes. He issued a strong warning on the direction of policy evolution in Nigeria’s business environment.

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“The message for MSMEs is very clear. By 2030, ESG reporting is expected to become mandatory in Nigeria. Therefore, the time to prepare is now,” Jaiyeola said.

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He explained that the implementation guide was designed as a step-by-step roadmap to help small businesses gradually adopt ESG principles while still delivering measurable economic value.

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“This guide has been developed as a practical, step-by-step roadmap to help MSMEs begin and grow their ESG journey in a simple and progressive manner while delivering real business value,” he added.

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Jaiyeola said beyond regulatory compliance, ESG adoption would unlock significant opportunities for Nigerian businesses, including improved access to finance, stronger investor confidence, better market positioning, and long-term resilience.

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“Beyond compliance with regulations, ESG provides tremendous opportunities. It enables MSMEs to access finance, strengthen competitiveness, enhance their reputation, and build long-term resilience and value,” he said.

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He further described the guide as more than a policy document, but a survival and growth tool for small enterprises navigating a rapidly changing global economy.

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“For me and my colleagues on the NECA ESG Advisory Board, this guide is more than a document. It is a practical tool that will help Nigerian MSMEs compete, grow and thrive in a sustainability-driven economy,” Jaiyeola stated.

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Jaiyeola also provided background to the initiative, noting that NECA, with support from the International Labour Organisation, previously conducted a national ESG assessment launched in December 2025.

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He said findings from the assessment underscored the need to integrate MSMEs more deliberately into Nigeria’s sustainability framework, given their dominance in job creation and economic activity.

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“What we are launching today is, to the best of our knowledge, the first ESG Implementation Guide specifically designed for MSMEs in Nigeria and across Africa,” he said.

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He disclosed that six NECA officials are currently undergoing specialised ESG training at the ILO International Training Centre in Turin, Italy, adding that they would subsequently train MSMEs across Nigeria’s six geopolitical zones.

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Also speaking in an interview on the sidelines of the summit, the Director-General of NECA, Mr Adewale Smart Oyerinde, said ongoing economic reforms must be inclusive and supported by the organised private sector to succeed. He stressed that no reform can deliver optimal results without business participation, adding that the summit was designed to review policy outcomes and strengthen collaboration between government and industry.

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“Somehow, those reforms affect everybody: businesses, individuals, workers. So, for the reform to be effective, government needs the collaboration and support of organised businesses to drive it effectively,” he said.

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Oyerinde said NECA would continue to engage government while ensuring that policy recommendations from the summit are not only documented but acted upon.

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“The outcome of this two-day summit in the form of the communiqué will be shared with the Honourable Minister and all other stakeholders. Our recommendations are not frivolous; they are not antagonistic, but they show alternative pathways to achieving Nigeria’s economic objectives,” he added.

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The launch comes amid a global shift where ESG compliance is increasingly becoming a prerequisite for accessing international capital, supply chains, and export markets.

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Across Africa, MSMEs account for more than 90 per cent of businesses and contribute significantly to employment generation, yet many lack structured frameworks to meet evolving sustainability requirements.

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In Nigeria, policymakers and private sector leaders have repeatedly warned that businesses risk exclusion from global value chains if they fail to adapt to ESG standards, carbon disclosure requirements, and social governance benchmarks.

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NECA’s new guide is therefore positioned as an early-response tool to prepare Nigerian MSMEs ahead of anticipated mandatory ESG reporting regulations by 2030.

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PUNCH Online reports that the two-day Nigeria Employers’ Summit ended on Tuesday with participants acknowledging that the economic reforms introduced by the Federal Government were necessary to stabilise the economy and correct longstanding structural distortions.

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However, delegates in the summit’s communiqué stressed that the implementation of the reforms must be deepened and widened to deliver more inclusive benefits to businesses and Nigerians.

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The communiqué also called for stronger collaboration between government and the organised private sector, improved policy coordination, and measures to cushion the impact of reforms on enterprises and households while sustaining the momentum of economic restructuring.

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