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ESG Compliance Now Critical for Nigeria’s Real Estate Growth, Says LCCI President

Published by Samuel Ayomide on March 30th, 2026.

Stakeholders in Nigeria’s construction and real estate industries have been urged to prioritise Environmental, Social and Governance (ESG) principles as a pathway to sustainable growth and increased investment inflows.

President of the Lagos Chamber of Commerce and Industry (LCCI), Engr. Leye Kupoluyi, made the call during the 2026 Real Estate, Construction and Engineering Sectoral Conference held in Lagos, where industry leaders gathered to assess the future of the built environment.

Speaking at the event, Kupoluyi highlighted the rising economic relevance of the sector, noting that its expanding contribution to Nigeria’s Gross Domestic Product makes it imperative to address long-standing structural challenges. As reported in coverage monitored by BusinessDay, he pointed out that rapid urban growth has continued to outpace infrastructure development, deepening deficits across housing and public utilities.

Kupoluyi described ESG as more than a global trend, positioning it instead as a strategic framework for transforming the industry. According to him, aligning business practices with ESG standards has become essential for attracting long-term investment and improving Nigeria’s competitiveness in the global market.

He stressed that environmental considerations remain particularly urgent, given the sector’s heavy reliance on resources and its significant role in carbon emissions. He also drew attention to social concerns, especially Nigeria’s housing shortfall estimated to run into millions of units, which continues to widen amid population growth.

On governance, the LCCI president cited regulatory bottlenecks, land administration issues and transparency gaps as key obstacles discouraging investors and slowing project execution. These concerns, he noted, must be addressed to unlock the full potential of the sector.

The conference, themed around sustainability and sector resilience, was designed to provide a platform for policy direction and industry collaboration. Analysts quoted on platforms like Nairametrics have similarly emphasised that ESG adoption is increasingly becoming a prerequisite for global capital flows into emerging markets.

In his keynote address, Group Managing Director of GPFI Group, Dr. Muhammed Kassim Balogun, reinforced the urgency of integrating ESG into sector operations. He noted that international investors now place significant weight on ESG credentials when making funding decisions.

“Globally, ESG performance is fast becoming a deciding factor in access to finance,” he said, warning that failure to align with these standards could limit Nigeria’s ability to attract critical investments.

Balogun added that beyond environmental responsibility, ESG compliance offers practical benefits, including risk reduction, operational efficiency, and improved long-term asset value.

Industry observers say the growing emphasis on ESG signals a shift in how Nigeria’s built sector is expected to evolve, with sustainability, transparency and resilience emerging as defining benchmarks for future growth.