Lagos: Some experts in the built environment have called for the adoption of Environmental, Social, and Governance (ESG) principles to attract long-term investment, drive sustainability, and enhance global competitiveness. The experts made the call at the Lagos Chamber of Commerce and Industry (LCCI) 2026 Real Estate, Construction and Engineering Sectoral Group Conference held on Thursday in Lagos. The conference has the theme: ‘Mainstreaming Environmental, Social and Governance (ESG) Compliance in Nigeria’s Engineering, Construction and Real Estate Sectors’.
According to News Agency of Nigeria, President of LCCI, Mr. Leye Kupoluyi, emphasized that the future of economic competitiveness would increasingly depend on the strength, efficiency, and sustainability of the country’s built environment. He referenced data from the National Bureau of Statistics (NBS), highlighting that the real estate, construction, and engineering sectors contributed nearly 10 percent to Nigeria’s Gross Domestic Product (GDP) in the fourth quarter of 2025, making them key non-oil drivers of growth. Kupoluyi noted that Nigeria’s population, estimated at over 220 million, and rapid urbanization had intensified the importance of these sectors, but warned that infrastructure development had not kept pace. He described this gap as a structural challenge, stressing that ESG should be seen as a strategic tool for transformation.
Dr. MKO Balogun, Group Managing Director, Global Properties and Facilities International, remarked that sustainability had evolved from being perceived as a luxury to a core business imperative in Nigeria’s construction and real estate sector. Balogun noted that sustainability was previously treated as an optional add-on, particularly in high-end or international projects, but had now become central to industry practice. He cited the 2024-2025 Global Status Report for Buildings and Construction, indicating that the sector accounts for between 37 and 42 percent of global greenhouse gas emissions, with operational activities contributing 27 to 35 percent. According to him, ESG principles should be seen as the foundation for building resilient cities, inclusive communities, and a competitive economy. He added that ESG had become a key determinant in access to finance, noting that over 83 percent of global real estate executives rank ESG credentials among the top factors influencing investment decisions. Balogun
warned that failure to mainstream ESG practices could limit Nigeria’s access to global investment opportunities.
He proposed the establishment of an ESG task force by LCCI to collaborate with professional bodies and government institutions in developing a practical compliance framework for Nigerian firms. In his remarks, the Director-General of the Standards Organisation of Nigeria (SON), Dr. Ifeanyi Okeke, emphasized the role of standardization and quality assurance in achieving ESG compliance. Okeke, represented by Mrs. Musa Bauchi, Chief Standards Engineer, said adherence to standards, metrology, and codes of practice was critical for sustainable sector development. He expressed SON’s readiness to collaborate with stakeholders in developing ESG compliance regulations.
Dr. Michael Oladiji, Chairman, Real Estate Group, LCCI, stated that ESG principles had become central to how investments are evaluated and projects delivered globally. Oladiji noted that stakeholders in the built environment operate at the intersection of infrastructure, communities, and economic growth, adding that decisions made today would shape future living standards and economic resilience.