The Nigeria Employers’ Consultative Association has urged businesses, particularly Micro, Small and Medium Enterprises, to embrace Environmental, Social and Governance principles to improve competitiveness, attract investment, and achieve long term growth amid rising global and domestic economic pressures. The Director General of NECA, Mr Adewale-Smatt Oyerinde, stated this on Friday in Lagos during the official launch of the Environmental, Social and Governance implementation guide for Micro, Small and Medium Enterprises in Nigeria. Oyerinde noted that the guide was developed in collaboration with the International Labour Organisation.
Reflecting on the current global economic landscape, Oyerinde explained that Nigeria remains susceptible to international disruptions. He said, “We all know the issues involving the United States, Iran, and Israel, which have caused a lot of disruptions. So the natural expectation is that we are not isolated from those challenges. So whatever they feel there, we will feel here. It will be fake news or a false belief if we think flights here will not be delayed by this lack of jet fuel. It will be affected.”
The Director General also highlighted the domestic hurdles confronting smaller businesses. He invited observers to “Walk around the areas where MSMEs are predominantly located, and you will probably see the context of the challenges they are facing with local governments, regulated and unregulated fees, and levies that they pay. All those are big challenges that they are going to face.” Regarding the newly launched guide, Oyerinde maintained that ESG considerations have become essential requirements for sustainability. He observed that, “From investors and regulators to consumers and global value chains, there is a growing expectation for businesses, regardless of size, to demonstrate responsible and sustainable practices.”
He admitted that while large corporations possess the resources to navigate these requirements, “many MSMEs, which form the backbone of Nigeria’s economy, often face challenges in understanding where to begin, what is required, and how to implement ESG principles in a practical and cost-effective manner.” Oyerinde further clarified that the initiative was born out of a need to support smaller entities. He stated, “It is in response to this gap that NECA, in collaboration with our esteemed partner, the International Labour Organisation, developed this ESG Implementation Guide for MSMEs in Nigeria.”
The NECA boss emphasized that adopting these practices is vital for the progress of the country. He said, “For Nigeria, supporting MSMEs to adopt ESG practices is also central to achieving inclusive economic growth, job creation, and sustainable national development.” Concluding his remarks, he reaffirmed the association’s commitment to ongoing support for the business community. He stated, “At NECA, we recognise that the transition to sustainable business practices requires more than guidance; it requires continuous engagement, capacity building, and collaboration. We are therefore committed to supporting our members and the wider business community through training, advisory services, and strategic partnerships that will drive ESG adoption across sectors.” He then called on the government, financial institutions, and development partners to collaborate in creating an enabling environment for MSMEs to scale up their sustainability journey.
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