Nigerian Banks Score Shockingly Low On Global Standards, Coalition Demands Urgent Reforms
Princess-Ekwi Ajide
Nigeria’s banking sector, often regarded as a pillar of economic stability, is now facing intense scrutiny over its adherence to global ethical and sustainability standards.
A coalition of non-governmental organisations under the Fair Finance Nigeria Coalition has raised an alarm, calling for urgent reforms to strengthen transparency and accountability across the country’s financial system.
The demand follows a new assessment presented in Abuja, which revealed that four major Nigerian banks, Access Bank, Standard Chartered, United Bank for Africa, and Zenith Bank, scored an average of just 1.7 out of 10 in Environmental, Social and Governance (ESG) standards.
The report evaluated the institutions against more than 400 international sustainability criteria and uncovered troubling gaps.
Notably, all four banks recorded zero scores in tax transparency, with no public disclosure of country-by-country revenues or links to entities operating in tax havens.
On climate action, the banks fared poorly, scoring an average of 0.9 out of 10.
.The assessment highlighted continued financing of high-emission industries such as oil and gas, without clear transition strategies towards cleaner energy.
Beyond environmental concerns, the report also flagged weak commitments to human rights, biodiversity protection, and the welfare of host communities impacted by financed projects.
Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, warned that the lack of transparency could fuel illicit financial flows, money laundering, and significant revenue losses for the country.
He stressed that while the findings are not an attack on financial institutions, they serve as a wake-up call for banks and regulators to align with global best practices.
Also speaking, Oxfam Nigeria representative Henry Ushie noted that banks must go beyond policy declarations and ensure their operations reflect fairness, sustainability, and respect for human rights.
He further raised concerns about customer treatment, staff welfare, and environmental responsibility.
The coalition is now urging the Central Bank of Nigeria and the Chartered Institute of Bankers of Nigeria to review regulatory frameworks and enforce compliance with international standards.
It also called on financial institutions to undertake self-assessments and urgently address identified shortcomings.
According to the group, strengthening transparency and accountability within the banking sector is essential for attracting investment, curbing corruption, and achieving sustainable economic growth.
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