This study examined Environmental, Social, and Governance (ESG) practices in the Nigerian banking sub-sector, focusing on the challenges and enablers of ESG implementation. With the rapid growth of financial markets, ESG standards were increasingly recognized as vital for sustainable performance, risk management, and long-term resilience. Despite their importance, the adoption of ESG practices in Nigeria faced significant barriers, including limited regulatory oversight, insufficient resources, and inconsistent implementation across banks. A quantitative research design was employed, using secondary data from sustainability reports of eight Tier 1 banks in Nigeria. Findings revealed that governance-related ESG practices were more comprehensively documented, while environmental and social aspects remained inadequately addressed. Challenges such as fragmented regulations and financial constraints hindered widespread adoption. Conversely, leadership support, clear ESG policies, and stakeholder engagement were identified as key enablers. The study concluded that the Nigerian financial sector was at a critical stage in ESG development, with opportunities to advance sustainable development through best practices in ESG reporting, green finance, and diversity and inclusion initiatives. Regulatory bodies were highlighted as essential actors in strengthening ESG frameworks. The study contributed to understanding the current state of ESG integration in Nigeria and provided practical recommendations for enhancing adoption. Future research could explore the impact of technology on ESG performance and the innovative risk–reward trade-offs of ESG integration.

Keywords: ESG, Nigerian financial institutions, Sustainability in Finance, Nigerian Economy,

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