FirstBank Screens ₦10 Trillion Transactions for ESG Risk

In Short

• FirstBank says it screened corporate transactions worth more than ₦10 trillion for ESG risks in 2025.
• The bank said this covered 505 corporate transactions, up from 237 transactions worth over ₦3 trillion in 2024.
• The update was shared at a sustainability conference in Lagos.

What Happened

FirstBank said it screened 505 corporate transactions worth more than ₦10 trillion for ESG risk in 2025. ESG means environmental, social and governance checks, in simple terms, a way to flag climate impact, community harm, or weak oversight before a bank lends or backs a deal.

The bank said the 2025 screening volume increased from 2024, when it reviewed 237 corporate transactions valued at over ₦3 trillion. The disclosure was made in Lagos during the inaugural Sustainability Conference of the Sustainability Professionals Institute of Nigeria.

According to the bank, the increase reflects a decision to embed environmental and social considerations into credit underwriting. Credit underwriting is the process a bank uses to decide who gets financing and on what terms.

FirstBank also said it has finalised a Green Product Credit Policy. The policy is meant to align its lending standards with its internal climate policy and its environmental and social management system, which is the bank’s framework for identifying and managing non-financial risks.

Why It Matters

For businesses in Nigeria, more ESG screening can mean more documentation and stricter requirements when seeking corporate loans, project finance, or large credit facilities. Companies with higher exposure to climate and social risks, like heavy industry, construction, and energy, may face deeper due diligence and tighter loan conditions.

For the broader financial system, banks are increasingly treating climate and social issues as credit risk, not just public relations. If a borrower faces regulatory fines, community disputes, or shutdowns tied to environmental harm, the bank’s loan repayment risk rises too.

This also signals where future funding may flow. Lenders that build ESG screening into underwriting can more easily structure “green finance” products, which are loans tied to cleaner energy and lower emissions projects.