#17 How to Win Funding with ESG — No Added Expense
- Nigeria is moving to mandatory climate-related disclosure within four years, with SMEs given until 2030. Early movers will look more “investor-ready.” (Reuters, 2024).
- Local lenders and DFIs already screen for ESG. Aligning with the CBN’s Nigerian Sustainable Banking Principles (NSBP) and basic ESMS expectations opens doors to credit. (CBN/NSBP; DBN & BOI policies).
- Nigeria’s climate finance gap is large: only $2.5 bn flowed in 2021/22 against $29.7 bn needed annually. Investors are searching for credible projects and disclosures. (Climate Policy Initiative, 2024).
Let’s be honest, finding funding in today’s economy is tough. Lenders and investors are cautious, competition is high, and requirements keep evolving. But here’s a secret most businesses do not realise: ESG (Environmental, Social, and Governance) practices can give you a real edge.
In Nigeria, the shift is already happening. Within a few years, large companies will be required to disclose climate-related information, and SMEs will follow by 2030. The early movers, those already showing credible ESG practices, will look more “investor-ready” and move faster through the approval process.
Why? Because Nigeria’s climate finance gap is huge. Only a fraction of the billions needed each year is currently flowing in, and funders are actively looking for solid, transparent projects that manage risks responsibly. Whether you’re talking to a local bank, a development finance institution (DFI), or capital market investors, the same questions are coming up:Does this business understand its risks? Is there accountability at leadership level? Are they transparent about environmental and social impact?
If you can answer “yes” to these, you’re already ahead. And the best part? You can start aligning with ESG expectations without big upfront costs.
What Funders Already Expect (and How You Can Meet It)
You can start aligning with ESG frameworks and standards without big upfront costs. Here are three Low-Cost ESG Moves You Can Make Right Now
- Give ESG a Seat at the Table: Add ESG oversight to your board or leadership committee, and name someone internally to champion it.
- Write It Down: Draft an ESG policy using templates from the standard ESG frameworks. This will allow you to show how you manage risks.
- Label Your Projects: If you’re raising money for projects, align them with recognised green or social finance criteria. Investors and lenders often prioritise “labelled” projects.
The Real Payoff
Beyond meeting requirements, ESG builds trust. It makes you more attractive to lenders and investors, can reduce the cost of borrowing, and often shortens the approval process. In other words, it’s not just compliance, but it’s good business.
At Teasoo Consulting, we help businesses take these steps quickly and affordably by mapping their current practices to global standards, setting up lean ESG systems, and preparing investor-ready documentation. If you want a practical, Nigeria-grounded partner to help you secure funding, we’re here to talk.
