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ARTICLE · 13 NOVEMBER 2025

ESG Trends Nigeria: Banking Sector's Response To Climate Risk Assessments

ESG trends Nigeria has prompted the banking sector to fundamentally restructure how it evaluates and manages climate-related risks.

NigeriaEnvironment
Novatia Consulting
Novatia Consulting

ESG trends Nigeria has prompted the banking sector to fundamentally restructure how it evaluates and manages climate-related risks. This transformation affects lending decisions, investment portfolios, and operational strategies.

Major Nigerian banks now employ dedicated ESG teams to assess climate risks in their loan portfolios. These teams evaluate potential physical risks from climate change and transition risks from policy changes or technological shifts.

Credit scoring models increasingly incorporate ESG factors. Banks are developing new methodologies to assess how climate change might affect borrowers' ability to repay loans, particularly in agriculture and coastal industries.

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