This document provides an overview of business sustainability in Nigeria. It defines sustainability as meeting present needs without compromising future needs. Surveys found about half of Nigerians do not understand the concept but most care about it. Key laws and international agreements aimed at environmental protection are discussed. Major players in the sustainability field in Nigeria from government, non-profits, and businesses are profiled. Trends include increased awareness but a need for stricter enforcement of laws and shift to strategic sustainability roles in companies. Renewable energy is highlighted as a promising sector.
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What you need to know about business sustainability in Nigeria
1. What you need to know about
business sustainability
in Nigeria
April 2016
By Adiya Atuluku
2. What’s business sustainability anyway?
Business sustainability is all about balance!
Businesses that can meet their needs of today without
compromising theirs’ & others’ needs of the future are
sustainable businesses
The key lies in balancing the triple bottom-line
People + Planet + Profit
3. A quantitative research
revealed that about half
of the people surveyed
do not understand the
concept of ‘business
sustainability’.
But most of those that
understand the concept
care about it and are
willing to take action for
sustainability…given
enabling circumstances.
A qualitative survey
showed that of those
that don’t understand
the concept, they think of
sustainability in terms of
longevity of profit alone.
Do Nigerians know and care about sustainable businesses?
39%
6%
55%
Yes
No
I don't get
Poll ran on Twitter with 897 respondents, March 2016
All things being equal, would you
champion sustainability in your office?
42%
8%
50%
Yes
No
I don't get
Poll ran on Twitter with 661 respondents, March 2016
All things being equal, would you choose
a business practicing sustainability first?
4. What are some of the laws that you should know? (1/5)
United Nations
Convention on Climate
Change
Is an environmental
treaty negotiated in 1992
with the aim of reducing
greenhouse gas (GHG)
emissions to stabilize
concentrations in the
atmosphere. It sets a
framework by which
countries can negotiate
their own GHG emission
limits
Montreal Protocol on
Substances that Deplete
the Ozone Layer
Is an international treaty
aimed at protecting the
ozone layer by phasing
out the production of
substances that are
responsible for ozone
depletion
The Equator Principles
Is a voluntary set of
standards for identifying,
assessing and managing
environmental and social
risk in project financing
ISO 14000
This family of standards
contains tools that can be
used by companies to
manage their
environmental
responsibilities. In
particular, ISO
14001:2015 sets criteria
for a company’s
Environmental
Management System.
Some Key International treaties
5. What are some of the laws that you should know? (2/5)
Other Key International treaties
• Basel Convention on the Control of Trans-boundary
Movements of Hazardous Wastes and their Disposal
• Stockholm Convention on Persistent Organic Pollutants
• Rotterdam Convention on the Prior Informed Consent
Procedure for Certain Hazardous Chemicals and
Pesticides in International Trade
• International Convention on Oil Pollution Preparedness,
Response and Co-operation
• International Convention on the Establishment of an
International Fund for Compensation for Oil Pollution
Damage
• Convention for Co operation in the Protection and
Development of the Marine and Coastal Environment of
the West and Central African Region
• Oil in Navigable Waters Act
• Protocol Concerning Cooperation in Combating Pollution in
case of Emergency
• African Convention on the Conservation of Nature and
Natural Resources
• International Convention for the Safety of Life at Sea
• International Convention on Civil and Political Rights
• Constitution of the International Labor Organization
• International Convention to combat Desertification in those
Countries Experiencing Serious Drought and/or
Desertification, particularly in Africa
• Convention on Biological Diversity
• Vienna Convention for the Protection of the Ozone Layer
• United Nations Convention on the Law of the Sea
• Global Reporting Initiative (GRI)
• United Nations Environment Program – Finance Initiative
6. What are some of the laws that you should know? (3/5)
National Policy on
Environment, 1989
This describes guidelines
for securing a quality &
healthy environment, and
maintaining or restoring
ecosystems for the
preservation of
biodiversity
National Guidelines and
Standards for
Environmental Pollution
Control in Nigeria, 1991
This serves as a guideline
for monitoring and
controlling industrial and
urban pollution (air,
noise, waste, water, soil,
etc.)
Pollution Abatement in
Industries, Industries
Generating Wastes
Regulation, 1991
This imposes restrictions
on the release of toxic
substances, and states
requirements monitoring
pollution from industrial
machineries, etc.
Environmental Impact
Assessment Act, 1992
The Act makes EIA
mandatory for any major
development project that
may have negative
environmental and social
impacts, and describes
the procedure for risk
assessment and reporting
Some Key National Laws
7. What are some of the laws that you should know? (4/5)
Other Key National Laws & Regulations
• National Environmental Standards And Regulation
Enforcement Agency (NESREA) Act 2007
• National Effluent Limitation Regulation, 1991
• Management of Hazardous and Solid Wastes
Regulation, 1991
• Minerals and Mining Act, 2007
• Quarries Act, 1969
• Explosives Act, 1967
• Nature Conservation and Environmental
Development Organization, 2001
• Factories Act, 1987
• Mineral Oils (Safety) Regulations, 1997
• Criminal Code
• Forestry Act, 1958
• Land Use Act, 1978
• The Endangered Species Act, 1973
• Harmful Waste (Special Criminal Provisions) Act, 2004
• Petroleum Act, 2004
• Niger-Delta Development Commission (NDDC) Act, 2004
• National Oil Spill, Detection and Response Agency
(NOSDRA) Act 2006
• Water Resources Act, 2004
• National Environmental Regulations 2009 (for various
sectors, e.g. telecoms, manufacturing, mining, food,
apparel, construction, seas, electronics, automobiles,
pharmaceuticals, etc.)
• Hydroelectric Power Producing Areas Development
Commission (Establishment, Etc.) Act, 2010
• National Policy on Climate Change, 2012
• National Energy Policy, 2003
8. What are some of the laws that you should know? (5/5)
Other interesting developments in the
Nigerian regulatory space are…
Nigerian Electricity Regulatory Commission
mandated 50% renewable energy procurement in
electricity sector in 2015
A National Adaptation Strategy and Plan of Action
for Climate Change Nigeria (NASPA- CCN) was
developed in 2011
The banking industry developed the Banking
Sustainability Principles in 2012 for assessment of
Environmental & Social Risks before financing
Energy Commission of Nigeria and UNDP
developed the Renewable Energy Master Plan in
2005
FEC approved the National Renewable Energy
and Energy Efficiency Policy (NREEEP) in 2015 for
the electricity sector
Nigerian government has committed to localizing
and implementing the 17 Sustainable
Development Goals (SDGs), as well as adopting
ISO 26000 (Social Responsibility)
9. Who are some of the key players that you should know? (1/2)
The key players (shown in no particular order) in the sustainable
business space shown below are from both private and public sectors
Amina J Mohammed
Current Minister of Environment,
former SA to Sec-Gen of UN &
former SSA to President on MDGs
Adejoke Orelope-Adefulire
Current Senior Special
Advisor to the President on
the SDGs
Dr. Chris Ogbechie
Founder & Director of First
Bank Sustainability Centre of
Lagos Business School
Benedict Bengioushuye Ayade
Current Cross River state governor,
former senator, Chairman of
Ecological Fund, & Environmental
Inventor
Chris Edeh
Executive Director of African
Alternative Energy Association &
Grassroot Empowerment
Initiative
Ahmed Sanda
Founder of Ashawa Consults &
pioneer environmental
consultant working with public
& private sectors
Ini Onuk
Founder of Thistle Group &
experienced sustainability &
development consultant, & convener
of Sustainable Conversations
Nnimmo Bassey
Architect, renowned
environmental activist & former
Chairman of Friends of the
Earth International
10. Who are some of the key players that you should know? (2/2)
*Please note that this list is by no means exhaustive & is in no particular order.
Toyin Olakanpo
Lawyer & child rights activist,
founder of CSR Children & the
popular weekly tweetchat on SDGs
Bekeme Masade
Social entrepreneur, PR
specialist, and Executive
Director of CSR-In-Action
Ken Egbas
President of the Social
Enterprise Report & Awards
(SERAs), the top CSR honors
Dr. Aisha Usman Mahmood
Special Advisor to CBN Governor on
sustainable banking & former DG of
National Center for Women Affairs
Priscilla Achakpa
Environmental activist and
executive director of the Women
Environmental Programme (WEP)
Esther Agbarakwe
SA to Minister of Environment &
experienced environmental activist &
development professional
Ugochi Anyaka
Award-winning environmental
journalist & editor of EcoNigeria
online magazine
Femi Oye
Co-founder of SMEFunds &
founder of first carbon trading
network in Nigeria
The key players (shown in no particular order) in the sustainable business
space shown below are from both private and public sectors (cont’d)
11. What are some of the companies that you should watch? (1/2)
Some Nigerian corporations taking
business sustainability seriously are…
Click the logos to learn more about each organization
Each of them report regularly on sustainability activities
There still needs to be a shift from CSR to business
sustainability on a strategic level in many of these companies
But there are many more companies that carry out
Corporate Social Responsibility (CSR)
These companies have specifically put
sustainability in their business models, as well as
reporting according to international standards
And these companies help by
providing expertise…
12. What are some of the companies that you should watch (2/2)?
Click the logos to learn more about each organization
These are some of the 31 companies in the coalition
The Coalition will work together to take action for sustainable
development across Nigeria and share lessons learnt
These companies came together voluntarily to form the
Nigerian Business Coalition for Sustainable Development
The Coalition is affiliated with the World Business Council for
Sustainable Development.
13. Why do these companies bother?
Manage risks that may affect their current and future
operations, especially with external pressures from climate
change affecting ecosystems & societies
Make sure that they are in line with any laws and regulations that
govern all the areas they operate in
Meet the changing needs of their customers, especially as
the public is getting more aware of sustainability issues
Make their employees proud that they work with them
and that they are contributing meaningfully to society
Have a culture of learning and innovation to solve
society’s problems
Manage their reputation with the communities they
operate in & gain recognition e.g. SERA Awards
Get access to finance from investors &
organizations that care about sustainability
Increase their chances of a strong, long-
term financial performance
14. What’s happening in Nigeria that should you know about?
Click the news screenshots to
learn more
Sustainable
development
has been on
the news
lately!
15. What trends should you take note of?
Nigeria has the right laws in place, but more effort is required from
regulators to monitor and enforce these laws accordingly
Many corporates, especially those with foreign head offices, are taking business
sustainability more seriously, and getting more strategic with their CSR
programmes. But many sustainability/CSR practitioners in companies are from a
marketing or corporate communications background; there needs to be a shift
towards more sustainability officials playing a more strategic role
The banking industry is leading business sustainability in Nigeria by
coming together to develop their banking sustainability principles
SMEs in the sustainability space are characterized by sustainable
products (instead of processes or CSR projects), particularly
renewable energy (with focus on solar)
There is a growing awareness of the need for business
sustainability amongst CEOs, politicians and state governors
The concept of business sustainability is catching on with the
public, but it’s only about half way through
Renewable energy seems to be the most promising
sector in the sustainable development space – with a lot
of foreign investment & political support. Watch out for
product innovations and more indigenous companies in
this space.
16. Final Words
The 17 Sustainable Development Goals have gained a lot of support in Nigeria, first with the agreements at COP21 and later
with federal and state governments engaging senior advisors on the SDGs. There are also conversations around this in the
business space, notably the Sustainable Convos and the online #SDGSaturdays. For once, people are watching and talking.
It is advised that to contribute meaningfully, businesses should assess their operations to find out which of these
sustainability issues are material to them, and then empower their Sustainability Officers to incorporate these into the
business strategy. The organizations can then work towards implementation through partnerships with internal stakeholders,
suppliers, similar or complimentary companies, relevant associations, and the Nigerian government.