NECA launches ESG implementation guide for MSMEs

• Urges policies to sustain businesses

The Nigeria Employers’ Consultative Association (NECA) on Tuesday launched Africa’s first Environmental, Social and Governance (ESG) Implementation Guide for Micro, Small and Medium Enterprises (MSMEs).

The organisation urged the Federal Government to implement policies that promote business sustainability as a foundation for job creation and inclusive economic growth.

The guide was unveiled at the 2026 Nigeria Employers’ Summit in Abuja by the Chairman of the NECA ESG Advisory Board, Mr Femi Jaiyeola.

Jaiyeola described it as a landmark initiative to equip MSMEs with practical tools to compete in an increasingly sustainability-driven global business environment.

He a said ESG had evolved beyond regulatory compliance into a strategic business imperative for attracting investment, improving competitiveness, strengthening resilience and enhancing long-term enterprise value.

“ESG has gone beyond a tick-box exercise to satisfy regulatory requirements. It now provides enormous opportunities for MSMEs and for Nigeria as a country,” he said.

He said the implementation guide comes at a critical period as regulators, financial institutions and international markets increasingly demand sustainable business practices from enterprises of every size.

“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,” he said.

According to Jaiyeola, the guide provides a practical, step-by-step roadmap to help MSMEs adopt ESG principles progressively while improving access to finance, strengthening business reputation, expanding market opportunities and increasing participation in global value chains.

“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,” he said.

He recalled that NECA, with support from the International Labour Organization (ILO), conducted a state-of-the-art ESG assessment in Nigeria, launched in December 2025, which highlighted the need to integrate MSMEs into the country’s sustainability framework because of their strategic role in economic development and job creation.

“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.

Jaiyeola also disclosed that six NECA officials were undergoing specialised ESG training for SMEs at the International Training Centre of the ILO in Turin, Italy, after which they would train MSMEs across the six geopolitical zones to deepen ESG awareness and implementation.

Speaking on the sidelines of the summit, NECA Director-General, Mr Adewale-Smatt Oyerinde, said achieving sustainable economic growth required deliberate policies that enabled businesses to survive and expand, noting that sustainable enterprises were essential for creating decent jobs.

“There must be a business before there are workers. It takes a sustainable business to create jobs. If the business is not sustainable, hardly will you create jobs,” he said.

Oyerinde said government should continue to pursue reforms while ensuring policies strike a balance between business sustainability and workers’ welfare through decent employment, fair remuneration and improved workplace conditions.

“We must consistently create that balance. A business must survive, then a surviving business must create decent jobs, and one component of decent jobs is adequate remuneration,” he said.

He added that NECA would continue engaging government to ensure ongoing reforms addressed the interests of employers, employees and the broader economy.

According to him, participants at the two-day summit recommended more inclusive implementation of reforms, timely execution of industrial policies and practical measures to accelerate growth across productive sectors. He said the summit’s communiqué would be presented to relevant ministries and agencies as a contribution to policy development.

“Our recommendations are not frivolous. They are not antagonistic. They simply show different pathways to achieving the overall economic objectives of this country,” he said.

Commenting on recent reforms, Oyerinde acknowledged that the removal of fuel subsidy had raised business operating costs and reduced consumers’ purchasing power, affecting demand for goods and services.

“As the cost of doing business increases, the cost of goods and services also increases, while disposable income continues to reduce, making it difficult for consumers to buy,” he said.

However, he maintained that the subsidy removal and the liberalisation of the foreign exchange market were necessary reforms that would strengthen the economy over time by eliminating distortions and promoting transparency.

He also commended improvements in airport infrastructure and immigration services, expressing optimism that although the reforms had imposed short-term hardship, they would ultimately create a more sustainable environment for businesses, workers and future investments.

“We have stopped digging the economic hole. We are gradually filling it, and we hope to get to the point where Nigerians will begin to see the full benefits of these reforms,” he said.