Dike Onwuamaeze
The International Finance Corporation (IFC) has known as for stricter enforcement of Environmental Social Governance (ESG) frameworks and laws as a approach of compelling builders in the true property sector to incorporate ESG’s rules of their services deliveries.
This name was revamped the weekend by the Lead Green and Resilient Built Environment for Nigeria International Finance Corporation, Ms. Temilola Sonola, in the course of the Lagos Chamber of Commerce and Industry’s (LCCI) “2026 Real Estate/Construction and Engineering Sectoral Group Conference.”
The theme of the convention was “Mainstreaming ESG Compliance in Nigeria’s Engineering, Construction and Real Estate Sectors.”
Speaking in the course of the panel session titled “ESD Compliance, Regulatory Framework and Environmental Sustainability in the Built Environment,” Sonola mentioned that ESG rules have been nonetheless being seen as elective by companies as a result of the federal government had not made them to bear the complete monetary prices of ignoring environmental sustainability.
She mentioned: “The first level is that the associated fee of ESG has not been internalised.
“For instance, you might be constructing a home in a flood space and the flood comes and breaks it down. Who goes to bear the associated fee? Probably the federal government.
“I think that we need to internalise things a little bit more by some kind of regulation.”
She added: “One factor I learn about Nigeria is that the framework is there and the legal guidelines and laws are there.
“So, enforcement might be one of the problems and if we will implement a bit of bit extra of our constructing legal guidelines then we will internalise the prices a bit of bit extra.
“Because if you happen to inform a developer that if you happen to construct this home right here and erosion takes it down you’re going to pay for it, he’s probably to take extra care.
“We are human beings. It is not going to happen if you do not enforce it. And that is what we need to do a bit more in Nigeria”
Sonola additionally mentioned that there have been cheaper sources of funds from the governments of The United Kingdom and Switzerland and growth monetary establishments just like the IFC that will assist builders who have been prepared to construct sustainably to bear the associated fee of going inexperienced.
In his welcome handle, the President of Lagos Chamber of Commerce and Industry (LCCI), Mr. Leye Kupoluyi, mentioned that Nigeria’s financial future can be considerably influenced by “how we build and manage our infrastructure and urban systems.”
Kupoluyi mentioned: “The trajectory of Nigeria’s economic future will be significantly influenced by how we build and manage our infrastructure and urban systems. The responsibility now lies with all of us to act decisively.”
“From an environmental perspective, the built environment remains one of the most resource-intensive sectors globally, responsible for energy-related carbon emissions,” he mentioned.
According to him, the social dimension of ESG is vital within the Nigerian context with a housing deficit exceeding 17 million items and a quickly rising city inhabitants.
He mentioned: “The governance element of ESG stays basic to unlocking the complete potential of the sector.
“Persistent challenges in land administration, regulatory inconsistencies, and transparency continue to affect investor confidence and project delivery timelines.”
In his keynote handle, the Group Managing Director/CEO of Global Property and Facilities International, Dr. M.Okay.O. Balogun mentioned that in 2026, sustainability is now a capital funding determination fairly than a mere environmental problem.
He mentioned: “ESG information is now a ‘red flag.’ They should not simply wanting for a constructing; they’re wanting for a resilient asset.
“Across industries and markets, ESG is more and more shaping how tasks are financed, regulated and evaluated.
“For Nigeria, this shift carries explicit significance and because the largest economic system in Africa and one of the fastest-growing city markets on the continent, the way in which we design and develop our constructed setting will immediately affect our financial resilience and long-term competitiveness.
“Mainstreaming ESG is, therefore, not simply about environmental responsibility. It is about reducing investment risk, improving operational efficiency, attracting capital and ensuring that the infrastructure we build today remains valuable and resilient for tomorrow.”
The Chairman of the Real Estate Group, LCCI, Dr. Michael Oladiji, mentioned that the theme of the convention was well timed and significant as a result of ESG rules have been now not elective beliefs, “they are now central to how investments are evaluated, how projects are delivered, and how much of long-term value is created,” including that “for operators in the built environment, the implications of adopting ESG principles or standards are profound.”
