Business
Nigerian business leaders forge towards social and economic sustainability
ABUJA – Over the weekend, 28 Business Leaders from critical sectors of the Nigerian economy engaged in a session on creating sustainable economic future for business, society and the environment.
The high-profile engagement session which was held at Federal Palace Hotel, Lagos and was hosted by Managing Director Shell Development Corporation (SPDC) and Country Chair of Shell companies in Nigeria Mutiu Sunmonu saw in attendance Business leaders from oil and gas, telecommunications, financial services, real sector, pharmaceuticals and business services.
The meeting served as a platform or precursor for the setting up of a business council for sustainable development, which will affiliate with the World Business Council for Sustainable Development (WBCSD). The thinking of advocates of such an association is that businesses, has been and should remain drivers of innovation and efficiency, creator of wealth and a harbinger of economic freedom.
The epoch making roundtable meeting was meant to seek the buy-in and commitment of businesses in Nigeria for the establishment of the council. The council is expected to provide solutions to critical sustainable development challenges confronting Nigeria, thus providing a positive sustainable future for the society and rapid development of the economy. In other words, evaluating their social duty to enable them behave responsibly within social and environmental. As experts argue, sustainable development is a dynamic process that enables all people to realize their potential and to improve their quality of life in ways that simultaneously protect and enhance the earth’s life support systems, thus aligning sustainability with business success.
With the camaraderie displayed by the executives who thronged the venue of the engagement session, it was easily discernible that business, solidarity, and friendship were at display as the event created an ambience of true solidarity and gave space to development of partnership for a sustainable course.
In his remarks at the event, the convener of the engagement session and Country Chair, Shell Companies in Nigeria, Mutiu Sunmonu enjoined Business Leaders to join forces for the goodness of Nigeria as corporate entities, saying that he mooted the idea of forming the association to plough back into Nigeria value creation process that would engender and align with the country’s long term economic and social development.
He opined that “Business leaders should take collective steps as the business community to give help to the country in needed areas, aside from the usual Corporate Social Responsibility (CSR) embarked upon by corporate organizations on yearly basis, by also acting as forces of good of the society in which they operate.”
Sunmonu said the project has to be collectively owned and driven in a special way for the good of the country.
“As individual companies we are doing a lot in terms of CSR. I believe we don’t need to boil the ocean, but take little steps as a business community in needed areas to create the impetus for Nigerians to perceive us as corporate bodies that will not only make money and take off, but also impact on Nigeria,” he spoke further.
The CEO of Julius Berger, Engr. Wolfgang Goetsch harped on the need for companies to deploy a needs analysis to decipher what should be done for host communities as Corporate Social Responsibility (CSR) to avert the problem of duplication of same project and spread.
Engr. Wolfgang Goetsch commended the idea of informal alliance of business leaders to foster sustainable economic development in the areas of financial capital, and capacity building, stressing that the forum should also focus on climate change especially as it affects global impact. He averred that business leaders should think of designing, in consultation with their stakeholders, common guidelines for environmental and social assessment of their operations in line with best global practices.
Sir, Chris Ogbechie, Director, First Bank Sustainability Centre at Lagos Business School (LBS), who moderated the event, posited that business leaders must also through their alliance promote dialogue on sustainable development issues, saying that within such context organizations approach of implementing CSR should be based on environment issues and structures. He enjoined corporate bodies to do more research work on intervention areas and collaborate with each other to avoid duplication on CSR projects.
The business leaders conceptually believe that businesses should not only engage in value creation, but incorporate social, environmental and other metrics into corporate accounting, balance sheets, by factoring in calculative trade-offs between what is socially desirable and what is economically sound for a corporate body.
From the feelers generated at the engagement session, observers will not be surprised if the Chief Executives empower their boards with a specific mandate of fiduciary duty, which ensures that value creation includes broader stakeholder community, and that the social and ecological impacts of their activities are part of governance responsibilities.
In justifying the rationale for the formation of the council, the business leaders argued that it was timely and imperative given the pedigree of Nigeria as a country with the largest economy in Africa going by the rebased Gross Domestic Product (GDP) at $510billion, 100million GSM subscribers, but the country whose citizens are low on the Human Development Index (HDI).
They maintained that with the council in place, member companies will share best practices on sustainable development through exchanging information with peers from a cross section of industries and countries.
It will further enable them participate in policy development and influence the framework conditions under which companies operate, while creating a virile avenue to network like-minded business people and educate, influence business leaders globally.
Nigeria’s economic fortune is benefiting from the Middle East crisis, as the impact of capital inflows from stronger crude oil earnings has seen her foreign reserves climb to record $53.1 billion, beating the $51.04 billion year-end target.
Data available on the Central Bank of Nigeria’s (CBN) website indicated that the reserves closed at $53.1 billion on August 24, which is the highest level in almost 18 years.
Any analyses of the growth shows that the difference in reserves position places the Nigerian economy in good stead, because it can cover over 12 months import.
It is noteworthy that Nigeria’s external reserves fuel the CBN’s capacity to support the local currency and meet external obligations, have continued to rise steadily, since the face-off between the United States and Iran.
Further analysis of the data displayed by the CBN showed that the liquid portion of the external reserves stood at $52.5 billion.
Biztellers reports that Brent crude traded around $87 per barrel, within the week, well above Nigeria’s 2026 federal budget benchmark of $64.85.
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With the Middle East crisis not showing signs of abating, analysts believe the price rebound would largely bolster Nigeria’s fiscal revenues.
The line of thought is popular among those who know, because as a crude oil exporter, Nigeria will continue to earn more petrodollars, which they argue would support the domestic currency – naira’s stability, while pumping the volume of external reserves.
In its economic projections for 2026, the CBN targeted stronger oil earnings, foreign exchange market reforms and improved external capital inflows to achieve the year-end reserves projection.
According to analysts, the current reserves position reinforces the steady growth in Nigeria’s external buffers.
The founder/Chief Executive Officer of the Centre for the Promotion of Public Enterprise (CPPE), Dr Muda Yusuf, earlier hinted at a positive outlook for Nigeria’s external reserves as he does not see anything derailing the forex and fiscal reforms that have brought about stability and improvement in external reserves, as reported by The Nation.
Yusuf said: “Well, the outlook for me is positive because I don’t see anything derailing these forex reforms, fuel subsidy etc. It is these reforms that have brought about stability.”
The CBN data further showed that Nigeria’s external reserves have maintained a steady upward surge in recent months.
The reserves started June at $49.80 billion and crossed the $50 billion mark by June 5, reaching $50.12 billion.
On June 15, reserves had increased further to $50.81 billion before rising to the current position. The reserves stood at $51.9 billion on July 31, and continued.
The sustained increase reflects stronger foreign exchange inflows and improved liquidity conditions in the country’s external sector.
The CBN Governor, Olayemi Cardoso, said: “This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability.”
The CBN’s decision to clear over $7 billion unsettled FX backlogs raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion, Cardoso added.
The CBN boss had explained that although he had no idea where the fund for the backlog clearance would come from, when he assumed office, he believed it was the right thing to do, and gave investors his word.
He said: “Credibility is at the heart of any central bank. If you don’t have credibility, people do not trust you and they do not invest in your economy. When I took office, I made a promise we would pay the backlog, the verifiable backlog of monies that were owed by Nigeria to third parties.
“And it was, at the time, estimated at over $7 billion US dollars. And to be honest with you, I had no idea how I was going to do it, but I just felt it was not something to be negotiated.”
Cardoso explained that Nigeria needed to ensure that its integrity is maintained. Analysts believe the higher reserve level could enhance the CBN’s capacity to support exchange rate stability and meet external obligations.
Up to 30% equity in the upcoming Dangote Refinery in Kenya, has been placed on the table for East African countries, which makes about $1.5 billion worth of the planned project available to regional investors.
David Ndii, Kenyan President William Ruto’s economic adviser, disclosed this on Thursday at a capital markets forum in Nairobi, where he said Kenya would take a 10% stake while Ethiopia and Rwanda had also expressed interest.
Dangote’s planned refinery is expected to be developed in Lamu, a coastal town in southeastern Kenya, though the project was initially proposed for Tanga in Tanzania.
According to the billionaire industrialist, the decision to move the proposed location to Kenya was informed by commercial and technical considerations.
Ndii disclosed that Kenya’s proposed 10% participation would be worth approximately $500 million.
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He said the combined regional participation could amount to about $1.5 billion, with Dangote prepared to support the project if some participating countries are unable to commit as crude off-takers.
“The total for the region is about $1.5 billion,” he said. “I don’t actually see a challenge in doing that, and if some of them are not off-taking we will backstop.”
The proposed regional participation would give East African countries a direct equity interest in a major energy infrastructure project while potentially securing access to refined petroleum products for participating markets.
The United Nations Geoscheme (UNG) for Africa defines Eastern Africa as comprising 18 sovereign countries, alongside two French overseas territories, meaning the proposed 30% allocation could potentially involve a broader regional investor base beyond Kenya, Ethiopia and Rwanda.
The Nigerian authorities have been called upon to focus on strengthening domestic refining capacity.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) made the call in a communiqué issued at the end of the three-day PENGASSAN Energy and Labour Summit (PEALS 2026).
It stressed the need for adequate protection for refineries operating in the country.
The PENGASSAN said Nigeria must reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products by creating an environment that supports domestic refining and other value‑adding activities.
The communiqué, signed by the union President, Festus Osifo, and General Secretary, Jerry Amah, stressed the need to protect refineries, including Dangote Refinery and Waltersmith Refinery.
The association said the expansion would enable Nigeria to retain a greater share of the value generated from its petroleum resources while creating jobs, conserving foreign exchange and stimulating industrial development. PENGASSAN linked the growth to wider opportunities in petrochemicals, gas processing and other downstream activities.
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The communiqué reads in part: “The summit called for sustained policies and investments to expand Nigeria’s domestic refining capacity and reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products. The need to protect refineries (such as Dangote Refinery, Waltersmith Refinery, etc.) within Nigeria’s jurisdiction was emphasised.
“Nigeria must progressively retain more value from its petroleum resources through domestic refining, petrochemicals, gas processing and other value‑adding activities capable of generating employment, conserving foreign exchange and stimulating industrial growth.
“Ultimately, the strength of Nigeria’s oil and gas industry will not be measured merely by the resources beneath the ground, but by the projects delivered, the value created, the Nigerian capabilities developed, the decent jobs sustained and the prosperity generated for the Nigerian people.”
The association also warned that abrupt policy changes, overlapping mandates, repetitive approvals and conflicting directives increase the cost of doing business and weaken Nigeria’s competitiveness for global energy capital.
The PENGASSAN called for faster regulatory approvals, digitalised processes and clearer timelines, arguing that the effectiveness of regulation should be measured by its impact on investment, production, government revenue, job creation and national value rather than simply by the number of licences or approvals issued.
On gas, the PENGASSAN advocated an integrated approach to developing Nigeria’s more than 215 trillion cubic feet of proven reserves, including investments in processing facilities, pipelines, storage, LNG, LPG and CNG infrastructure. It said gas should be deployed more aggressively for power generation, manufacturing, transportation, fertiliser and petrochemical production.
The association also urged stronger protection of workers’ rights, occupational safety and employment during mergers, acquisitions, divestments and asset transfers, saying sustainable investment requires skilled and fairly treated workers and that increased production must not come at the expense of workers’ lives and wellbeing.
In addition, the PENGASSAN said the next phase of Nigeria’s petroleum industry must focus on execution with measurable targets and clearly assigned responsibilities to ensure policies translate into projects, production, investment and sustainable employment.
172 HCDTs Incorporated — NUPRC
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