SBFN Member Since:
2012
Member Organisations
Central Bank of Nigeria
Progress Against Pillars and Sub Pillars
This graphic can also be found within this country’s 2019 Country Progress Report.
Framework Documents
| Ref | Country | Policies/ Principles/ Guidelines | Year | Issuer |
|---|---|---|---|---|
| 151 | Nigeria | 2020 | Ministry of Environment | |
| 153 | Nigeria | 2020 | Ministry of Environment | |
| 154 | Nigeria | 2018 | Securities and Exchange Commission | |
| 155 | Nigeria | Reporting Template on Sustainable Financial Principles for the Capital Market | 2019 | Securities and Exchange Commission |
| 156 | Nigeria | 2018 | Securities and Exchange Commission | |
| 157 | Nigeria | Guidelines on Sustainable Financial Principles for the Capital Market | 2019 | Securities and Exchange Commission |
| 158 | Nigeria | 2018 | Securities and Exchange Commission | |
| 159 | Nigeria | 2018 | Securities and Exchange Commission | |
| 160 | Nigeria | 2014 | Central Bank of Nigeria | |
| 161 | Nigeria | Sustainable Banking Principles Guidance Note and Sector Guidelines | 2012 | Central Bank of Nigeria |
Strategic Development - Alignment with global E&S standards and best market practices
S1.1 – Does the framework make reference to international E&S targets (SDGs, Paris Agreement, Global Compact)?
Yes
(1) – Principle 8 page 28, §7 “Commit to international standards and best practice initiatives”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
S1.2 – Does the framework make reference to established international E&S risk management standards (IFC PSs, EPs)?
Yes
(1) – page 5, §5 ” Incorporate relevant international E&S standards and industry best practice”Sector Guidelines (Power, Oil & Gas and Agriculture)
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
S1.3 – Does the framework make reference to established international sustainability reporting standards (GRI, SASB)?
Yes
(1) – Principle 8 page 28, §7 “Commit to international standards and best practice initiatives”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
S1.4 – Does the framework make reference to established international climate finance reporting standards (TCFD)?
No
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S1.5 – Does the framework ask to make E&S policies, practices and results externally verified (assurance, independent review)?
Yes
(1) – Principle 6 page 25, §2 “Establish internal and, where appropriate, external E&S audit procedures” and 4th line of tab “Demonstrating progress”, Principle 9 page 32 “Internal reporting system” and “External reporting”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
Strategic Development - Multi-stakeholder collaboration
S2.1 – Does the framework involve interagency collaboration between financial supervisors/regulators, industry association, and FIs?
Yes
S2.2 – Does this collaboration also include other public agencies (e.g., environmental agencies, ministries)?
Yes
The NSBPs were developed in collaboration with Government Ministries and Agencies such as Federal Ministry of Environment
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S2.3 – Does this collaboration also include representatives of civil society (e.g., NGOs, associations, media)?
No
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Strategic Development - Alignment to NDCs and with National or Regional Climate Change Targets
S3.1 – Is the framework aligned with national NDCs or other national and regional policies on climate?
No
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S3.2 – Has the SBN member identified the main climate risks (transition/physical) for their local financial sector?
No
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ESG Integration - Governance of E&S
Role of Governing Bodies on E & S
E1.1 – Does the country policy require one of the FI’s governing bodies (e.g., Board of Directors, Executive Committee, Supervisory Board, etc.) to approve an E&S strategy?
Yes
(1) – page 5, §1 “Set the tone from the top”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E1.2 – Does the policy require management to report on E&S strategy implementation to the governing bodies?
Yes
(1) – Principle 6 page 25, 1st line of tab “Demonstrating progress”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E1.3 – Does the policy require FI operational bodies to report to the governing bodies (or specific Board committee) on implementation of the E&S strategy?
No
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Organization
E1.4 – Does the framework ask FIs to define E&S roles and responsibilities?
Yes
(1) – page 5, §6 “Define clear E&S governance structures” and §8 “Build and maintain sufficient institutional capacity”; Principle 6 page 24 §5 ” Establish E&S governance responsibility”; Principle 7 page 26, §5 “Identify relevant roles and responsibilities for delivery against Sustainable Banking commitments”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E1.5 – Does the framework highlight the E&S roles of front office staff and second lines of defense (e.g. risk officers and/or compliance officers)?
Yes
(1) – Principle 6, page 25, row 2
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E1.6 – Does the framework ask FIs to define E&S competencies for each role?
Yes
(1) – Principle 7 page 26, §1 “What does this Principle mean?”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E&S Risk Management
E&S Policy
E2.1 – Does the framework ask FIs to formalize an E&S or ESG policy?
Yes
(1) – page 11, §2; Principle 1 page 19, §4 “Development of appropriate E&S policies” and §5 “Development of appropriate E&S procedures”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E2.2 – Does the framework encourage FIs to go beyond E&S requirements of local laws and regulations?
Yes
(1) – Sector Guidelines (Appendixes)
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E2.3 – Does the framework ask FIs to set E&S objectives and targets?
Yes
(1) – page 5, §7 “Measure and report progress”, Principle 9 page 31 §5 ” Set clear targets and relevant performance indicators”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E2.4 -Does the framework ask FIs to publicly disclose their E&S policy and its governance?
Yes
(1) – Principle 1, page 11 1st row tab “Demonstrating Progress” (E&S policies developed and implemented)Nigerian Code of Corporate Governance for public Companies, page 34 (28.3)
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
Risk Assessment
E2.5 – Does the framework require FIs to carry out appropriate E&S due diligence at transaction level?
Yes
(1) – Principle 1, page 10 §1 “Categorisation of potential E&S risks”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E2.6 – Does the framework require FIs to carry out appropriate E&S due diligence at client level?
Yes
(1) – Principle 1, page 8, §1, page 9 §1
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E2.7 – Does the framework encourage FIs to categorize projects/clients according to their level of E&S risk?
Yes
(1) – Principle 1, page 10 §1 “Categorisation of potential E&S risks”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E2.8 – For high-risk transactions, does the framework encourage site visits to be organized?
No
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E2.9 – In case of negative E&S impacts, does the framework invite FIs to engage with clients to implement mitigation measures?
Yes
(1) – Principle 1, page 10 §2 “Development and customisation of E&S due diligence procedures”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E&S Covenants
E2.10 – Does the framework ask FIs to incorporate E&S covenants and investment conditions into legal agreements with clients?
Yes
(1) – Principle 1, page 10 §2 “Development and customisation of E&S due diligence procedures”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
Project Supervision & Portfolio Review
E2.11 – Does the framework ask FIs to develop processes to manage E&S risks during supervision?
Yes
(1) – Principle 1, page 10 §2 “Development and customisation of E&S due diligence procedures” and §3 “Monitoring E&S risks and reviewing E&S conditions”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E2.12 – Does the framework encourage a periodic review of E&S risks at aggregate portfolio level?
Yes
(1) – Principle 1, page 11&12 4th line of tab Demonstratin Progress “E&S Management System reporting”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
Training
E2.13 – Does the framework ask FIs to develop and maintain E&S capacity through regular training?
Yes
(1) – Principle 1, page 11 §1 “Provision of client engagement guidance on E&S issue”; Principle 7 page 26 §6 ” Provide Sustainable Banking training sessions” and §7 ” Create practical E&S training tools and resources”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E2.14 – Does the framework highlight the training of (i) front office staff, (ii) second lines of defense (risk officers and/or compliance officers), and (iii) E&S experts?
No
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External Communication Mechanism
E2.15 – Does the policy require FIs to establish and maintain an inquiry/complaints/grievance mechanism in relation to E&S or ESG practices?
Yes
(1) – Principle 3, page 17 §1 ” Integration of human rights due diligence into E&S procedures”
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E & S Reporting
E2.16 – Does the policy require FIs to report regularly on E&S or ESG performance, including publicly, to investors or to regulators?
Yes
(1) – Principle 9, page 30 “Implementation of Principle 9″(2) – Question 1.4 Principle 1 (page 4)
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Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012) | Reporting Template for the Nigerian Sustainable Banking Principles (CBN, 2014)
E2.17 – Does the policy make E&S or ESG reporting and disclosure more consistent across financial institutions through principles, guidelines, or templates?
Yes
(1) – Sector Guidelines (Power, Oil & Gas and Agriculture)
(2)
(2)
Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012) | Reporting Template for the Nigerian Sustainable Banking Principles (CBN, 2014)
Nigerian Sustainable Banking Principles Guidance Note and Sector Guidelines (CBN, 2012)
E & S Integration - Enforcement
E3.1 – Is the implementation of the framework regularly verified or is information regularly collected from FIs?
Yes
(2)
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Reporting Template for the Nigerian Sustainable Banking Principles (CBN, 2014)
E3.2 – Is there any financial and/or non-financial incentive for establishing ESRM systems?
No
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E3.3 – Are there sanctions/penalties/warnings in case of noncompliance with the framework?
No
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Climate and Green Finance - Products and Services
Defining sustainable assets and financial products
C1.1 – Does the framework provide definitions and examples of green assets?
Yes
(3) – 2.0(4) – Eligible Projects
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Nigeria Green Bonds Rules (SEC, 2018) | Nigeria Green Bond Financial Product listed (SEC, 2018)
C1.2 – Does the framework provide a comprehensive taxonomy of green assets?
No
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C1.3 – Does the framework provide definitions, examples, or a taxonomy of social and/or sustainable assets?
No
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C1.4 – Besides debt products (loans, bonds), does the framework provide definitions and examples of different types of sustainable finance products/services (e.g., saving accounts, means of payment, insurance, private equity, etc.)?
No
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Green Finance Product Guidelines
C1.5 – Does the framework provide guidelines for green loan/green credit or other green financial assets (excluding green bonds)?
No
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C1.6 – Does the framework provide guidelines for issuance of green bonds?
Yes
(3)(4) Green Bond Principles
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Nigeria Green Bonds Rules (SEC, 2018) | Nigeria Green Bond Financial Product listed (SEC, 2018)
C1.7 – Does the framework refer to existing standards (e.g., ICMA’s Green Bond Principles or CBI’s Climate Bonds Standard)?
Yes
(4) – Eligible Projects(5) – 2.3 Compliance with the GBP
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Nigeria Green Bond Financial Product listed (SEC, 2018)
C1.8 – Does the framework recommend external party verification (e.g., second party opinion, assurance, certification)?
Yes
(3) – 3.0 iv
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Nigeria Green Bonds Rules (SEC, 2018)
Climate and Green Finance - Climate and Green Investment Reporting
Tracking and Disclosure of Climate & Green Finance
C2.1 – Does the framework ask FIs to report on climate/green finance flows (quantitatively or qualitatively)?
Yes
(3) – 5.0(2) – Question 1.14 Principle 1 (page 4)
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Nigeria Green Bonds Rules (SEC, 2018)
C2.2 – Does the framework ask FIs to report on climate risk exposure at portfolio level?
Yes
(2) – Question 1.12 Principle 1 (page 4)
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Reporting Template for the Nigerian Sustainable Banking Principles (CBN, 2014)
C2.3 – Does the framework encourage FIs to report publicly on their green finance activities (i.e. not only to the regulator)?
Yes
(2) – Question 1.12 Principle 1 (page 4)
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Reporting Template for the Nigerian Sustainable Banking Principles (CBN, 2014)
Climate and Green Finance - Measurement
Calculation of Environmental Benefits
C3.1 – Does the framework ask FIs to calculate the environmental benefits of their investments? (e.g., CO2 emission reduction, water saving, etc.)
Yes
(3) – page 2, ii
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Nigeria Green Bonds Rules (SEC, 2018)
C3.2 – Does the framework provide a taxonomy of potential environmental impacts?
No
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C3.3 – Does the framework provide methodologies, tools, and/or templates to measure and report these impacts?
No
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Climate Risk Exposure Assessment
C3.4 – Does the framework ask FIs to monitor climate risk exposure at portfolio level?
Yes
(2) – Question 1.12 Principle 1 (page 4)
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Reporting Template for the Nigerian Sustainable Banking Principles (CBN, 2014)
C3.5 – Does the framework refer to specific climate risk exposure methodologies (e.g., climate scenario analysis, climate risk stress testing, calculation of carbon risk exposure, tracking of energy efficiency for real estate portfolio)?
No
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C3.6 – Does the framework encourage FIs to take mitigating steps on these risks?
No
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Climate and Green Finance - Incentives
Financial and Non-Financial Incentives
C4.1 – Does the framework provide any type of incentives for green financial products and services?
No
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C4.2 – More specifically, does the framework introduce financial incentives on green products and services?
No
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