Lender assesses 505 deals in 2025 as sustainability becomes increasingly embedded in credit decisions
FirstBank Nigeria screened 505 corporate transactions valued at more than N10tn for environmental, social and governance (ESG) risks in 2025, representing a significant increase from the 237 transactions worth over N3tn assessed by the lender in the preceding year.
The disclosure underscores the growing role of sustainability considerations in lending and risk management as financial institutions grapple with climate-related exposures, environmental liabilities, social risks and the wider transition towards a lower-carbon economy.
FirstBank made the disclosure at the inaugural Annual Sustainability Conference of the Sustainability Professionals Institute of Nigeria (SPIN) in Lagos. The conference, sponsored by the bank, was held under the theme, “The Adaptive Enterprise: Sustainability Strategies for Challenging Times.”
The bank said the sharp rise in ESG screening reflected the increasing integration of sustainability considerations into its credit and risk management processes, rather than treating environmental and social issues as matters to be considered after financing decisions have been taken.
‘Challenging times are not a reason to retreat’
Speaking at the conference, the Managing Director and Chief Executive Officer of FirstBank Group, Olusegun Alebiosu, represented by the bank’s Executive Director, Risk Management, Adebiyi Olagbami, said economic difficulties had made sustainability more important, rather than less relevant.
He identified currency volatility, persistent inflation, tightening capital conditions and reduced global appetite for ESG investments as some of the pressures confronting businesses and financial institutions.
“Challenging times are not a reason to retreat from sustainability commitments; they are the reason those commitments were made in the first place,” Alebiosu said.
He argued that a credible sustainability strategy should do more than satisfy regulatory or reporting requirements. It should also help institutions anticipate emerging environmental and social risks, develop new revenue opportunities and preserve the confidence of customers, regulators and host communities.
According to him, FirstBank’s experience demonstrates that sustainability and financial performance can be pursued simultaneously.
He noted that the bank recorded gross earnings of N3.4tn in 2025, while continuing to strengthen its sustainability and climate-risk management framework.
Green lending policy takes effect
Alebiosu disclosed that FirstBank had finalised its Green Product Credit Policy, aligning its lending standards with its Climate Policy, Environmental and Social Management System, International Finance Corporation Performance Standards, and IFRS S1 and S2 sustainability disclosure standards.
The policy incorporates sector-specific ESG screening for industries including oil and gas, power, construction and agriculture.
This means that environmental and social considerations are increasingly incorporated into the credit underwriting process itself, allowing potential risks to be identified before financing is approved.
Alebiosu said the bank “screened 505 corporate transactions worth more than N10tn for ESG risks in 2025, compared with 237 transactions valued at over N3tn in 2024.”
The development represents more than a doubling in the number of transactions subjected to ESG screening within one year.
Climate finance expands
Beyond risk management, FirstBank is also broadening its financing options for businesses and individuals seeking to adopt cleaner energy and mobility solutions.
Alebiosu said the bank was expanding its climate finance portfolio through products such as Alternative Energy Finance for individuals, solar financing for small and medium-sized enterprises and a green energy addendum to its vehicle finance offering.
He identified access to finance as one of the major constraints to Nigeria’s clean energy transition, stressing that commercial banks had an important role to play in directing capital towards renewable energy and cleaner technologies.
The financing approach, he said, would help bridge the gap between the growing demand for sustainable solutions and the capital required to deploy them at scale.
ESG increasingly treated as credit risk
Olagbami, who also addressed the conference, said sustainable finance should be understood as a catalyst for resilient economic growth rather than simply another compliance obligation.
He explained that ESG risks were increasingly becoming core credit risks because exposure to climate transition, environmental liabilities and social issues could affect a borrower’s capacity to repay loans over the tenor of a facility.
“ESG risks are increasingly becoming core credit risks,” he said, noting that risks associated with climate transition and environmental and social liabilities could ultimately have financial consequences for borrowers and lenders.
FirstBank has therefore embedded ESG risk assessment into its credit process, with borrowers in sectors including construction, oil and gas, agriculture, manufacturing and services assessed for relevant environmental, social and climate risks.
According to Olagbami, customers are categorised according to their level of ESG exposure. Where shortcomings are identified, Environmental and Social Action Plans are developed to address the identified gaps.
The bank is also measuring financed emissions, a process designed to help it understand the carbon footprint associated with its lending portfolio and identify areas of vulnerability as Nigeria's economy gradually moves towards lower-carbon operations.
FirstBank to publish sustainability report
On transparency and disclosure, Alebiosu said FirstBank would publish its first Sustainability Report prepared in accordance with IFRS S1 and S2.
The bank also plans to sustain its commitments to international and national sustainability initiatives, including the UN Women’s Empowerment Principles, the UN Global Compact and the Nigerian Sustainable Banking Principles.
The move is expected to provide stakeholders with greater insight into the bank’s sustainability performance, risks and commitments while strengthening accountability around its environmental and social objectives.
Call for Nigerian approach to sustainability
At the conference, the Executive Director and Chief Investment Officer of the Nigeria Sovereign Investment Authority, Kolawole Owodunni, representing the Authority’s Managing Director/Chief Executive Officer, Aminu Umar-Sadiq, said sustainability should no longer remain at the margins of organisational strategy.
He stressed the need for sustainability considerations to become part of the core decision-making processes of businesses and institutions.
Earlier, the President of SPIN, Kenneth Amaeshi, called for a more indigenous approach to sustainability in Nigeria.
Amaeshi cautioned against simply adopting international sustainability frameworks without adapting them to the country's economic, social, institutional and environmental realities.
The discussions at the conference highlighted the growing expectation that Nigerian businesses and financial institutions should move beyond viewing sustainability as a reporting exercise and instead integrate it into strategy, investment, lending and risk management.
For FirstBank, the screening of more than N10tn in corporate transactions for ESG risks in a single year signals a growing shift in how sustainability is being incorporated into financial decision-making, with climate risks and environmental and social considerations increasingly treated as issues capable of affecting the underlying financial health of businesses.