A Review of Nigeria’s Legal and Regulatory Framework for Corporate Sustainability and Stakeholder Engagement

This study provides a comprehensive analysis of the legal and governance frameworks for sustainability and mandatory stakeholder engagement in Nigeria. It examines how the legal position has changed from a voluntary, profit-oriented practice to a mandatory requirement for stakeholder involvement. This is guided by new statutes, regulations, codes, and, more importantly, some landmark court decisions. There are substantial gaps in the implementation and enforcement of sustainability practices in Nigeria. Enforcement mechanisms are often weak, characterised by regulatory failure, inconsistent judicial decisions on the same issue, and a lack of political will, which gives room for corporate manipulation of sustainability practices. The reliance on the judiciary for the enforcement of environmental rights is constrained by procedural hurdles, such as a lack of specialised courts and statutory lacunas. While Nigeria is making efforts towards a new legal and regulatory framework for corporate sustainability and stakeholder engagement, its ultimate success is highly dependent on dedicated institutional and legal enforcement. Efforts must be made to strengthen regulatory authorities, judicial consistency, and mandatory compliance to realise the socio-economic and environmental objectives of sustainability. This is to ensure that sustainability and stakeholder involvement are not merely rhetorical and academic discussions, but legal and business imperatives for long-term value creation.