Recently, financial performance alone is no longer regarded as the sole determinant of corporate value and business success. In response, Environmental, Social and Governance (ESG) principles have emerged as an important framework for evaluating corporate sustainability, managing non-financial risks, and promoting long-term value creation. ESG encompasses environmental stewardship, social responsibility towards employees, host communities and other stakeholders, and sound governance practices through effective board leadership, accountability, and oversight mechanisms. As global expectations for responsible corporate conduct continue to evolve, companies are increasingly expected to align their operations with ESG standards and sustainability objectives.

This article examines the legal and regulatory framework underpinning ESG practices in Nigerian companies and analyses the extent to which existing corporate governance and sustainability laws facilitate ESG implementation. It further evaluates the practical challenges to effective implementation, including the absence of a harmonised ESG regulatory framework, fragmented reporting standards, weak regulatory enforcement, resource and financial constraints, technological limitations, inadequate ESG data management, and infrastructural deficiencies. The article argues that although Nigeria’s legal framework sparsely reflects emerging ESG principles, significant regulatory and institutional gaps continue to impede effective corporate sustainability outcomes. It concludes by proposing reforms to strengthen regulatory coherence, corporate accountability, and the institutionalisation of ESG practices in Nigeria. The article adopts the doctrinal research methodology, relying on the examination and analysis of both primary and secondary legal sources relevant to the subject matter under consideration.