Figures cited by *The Punch* show that FirstBank Nigeria subjected corporate transactions valued at over ₦10 trillion to rigorous Environmental, Social, and Governance (ESG) risk evaluations during the 2025 financial period. The disclosure, revealed at the Sustainability Professionals Institute of Nigeria conference in Lagos, marks a more than twofold expansion in corporate deals vetted for climate and governance compliance compared to the prior year. Bank executives emphasized that harsh macroeconomic environments and foreign exchange fluctuations have rendered integrated risk assessments indispensable for safeguarding asset quality.
The tier-one lender confirmed that its finalized Green Product Credit Policy now embeds explicit environmental underwriting metrics directly into credit approvals for key economic drivers including power, agriculture, construction, and oil and gas. Beyond defensive risk management, the institution has scaled capital allocation toward sustainable financing through dedicated solar loans for small enterprises and alternative energy credit facilities for retail clients. The move aligns with FirstBank’s broader transition strategy to evaluate financed emissions and comply with IFRS sustainability reporting benchmarks.
The systemic shift toward institutional ESG screening was verified by *Leadership*, which cited executive statements that “ESG risks are increasingly becoming core credit risks because a borrower’s exposure to climate transition can affect its ability to repay.” Concurrently, coverage by *BusinessDay* noted the commercial impact, quoting bank leadership as observing that “a credible sustainability strategy must protect institutions from emerging environmental and social risks while preserving the trust of regulators and communities.”
Echotitbits take:
FirstBank’s aggressive expansion of ESG screening reflects a pivotal maturation in Nigerian commercial banking, shifting sustainability from a corporate social responsibility initiative to a baseline credit risk factor. As global capital demands stricter compliance, other top-tier Nigerian banks will be compelled to align their credit portfolios with international green financing frameworks.
Source: The Punch – https://punchng.com/firstbank-screens-n10tn-transactions-for-esg-risks/, August 23, 2026
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