By Benson Daniel
FirstBank has screened 505 corporate transactions valued at more than N10 trillion for environmental, social and governance risks as the lender strengthens the integration of sustainability considerations into its credit and risk management processes.
The bank disclosed that the transactions were assessed in 2025, representing a significant increase from the 237 corporate transactions valued at more than N3 trillion that underwent ESG screening in 2024.
The development highlights the growing role of sustainability considerations in lending decisions as Nigerian businesses and financial institutions face increasing exposure to climate change, environmental liabilities, social risks and changing regulatory expectations.
FirstBank Group Managing Director and Chief Executive Officer, Olusegun Alebiosu, said the difficult economic environment had made sustainability even more important for financial institutions rather than reducing its relevance.
He identified currency volatility, persistent inflation, tighter capital conditions and declining global appetite for ESG investments as some of the pressures affecting businesses and banks.
According to him, sustainability should not be treated as an additional compliance requirement but as part of a broader strategy for managing risks, protecting institutional value and identifying new business opportunities.
The bank has also 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.
The policy introduces sector specific ESG screening for industries including oil and gas, power, construction and agriculture. This means environmental and social considerations are incorporated into the credit underwriting process before financing decisions are made.
The approach is expected to enable the bank to identify potential risks associated with borrowers and projects at an earlier stage and establish appropriate measures where environmental or social concerns are identified.
FirstBank Executive Director, Risk Management, Adebiyi Olagbami, said ESG risks were increasingly becoming core credit risks because environmental and social challenges affecting borrowers could eventually influence their ability to repay loans.
He explained that customers across sectors including construction, oil and gas, agriculture, manufacturing and services were being assessed according to their ESG and climate related exposures.
Where gaps are identified, the bank can require Environmental and Social Action Plans to address the identified risks.
The lender is also measuring financed emissions as part of efforts to understand areas of vulnerability within its loan portfolio as Nigeria gradually moves towards a lower carbon economy.
Beyond risk management, FirstBank is expanding its climate finance offerings to support businesses and individuals investing in cleaner energy solutions.
The bank is developing financing options for alternative energy, including solar financing for small and medium sized enterprises, while also expanding green mobility financing through an addendum to its vehicle finance offering.
The expansion comes as Nigeria faces a significant financing gap in its transition towards cleaner and more reliable energy. Financial institutions are expected to play a major role in mobilising the capital required for renewable energy, energy efficiency and other climate related investments.
FirstBank also plans to publish its first Sustainability Report this year in line with IFRS S1 and S2, providing greater disclosure around its sustainability performance and related risks.
The bank said its sustainability agenda extends beyond corporate lending to initiatives focused on financial literacy, entrepreneurship and climate education.
Its FutureFirst programme is among the initiatives being used to promote financial knowledge and economic empowerment, particularly among younger Nigerians.
The bank’s approach reflects a broader shift in the financial sector, where sustainability is increasingly being linked to long term financial resilience rather than viewed solely through an environmental lens.
As climate related risks, regulatory requirements and investor expectations continue to evolve, banks are expected to strengthen their ability to identify and manage ESG exposures across their portfolios.
For FirstBank, the screening of more than N10 trillion in corporate transactions signals a deeper integration of sustainability into its lending decisions and reinforces the growing importance of responsible financing in Nigeria’s financial system.
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