ABSTRACT
With the rebasing of Nigeria’s 2014 Gross Domestic Product (GDP) (Bloomberg, 2014), the Nigerian economy is now the biggest economy in Africa, having overtaken that of South Africa But compared to South Africa, responsible investment (RI) practice is not well developed, as evidenced by the small number of Principles of Responsible Investment (PRI) signatories among asset owners, asset managers and service providers that are based in Nigeria. But given that RI has had an overall growth rate of 68 per cent over the last 3 years (see Table 10.3 later in this chapter) and that there has been a concerted effort on the part of financial market regulators (e.g. the Central Bank of Nigeria) to enthrone RI principles in bank lending, we are of the opinion that RI has enormous potential in the Nigerian market. We are also of the opinion that this regulatory policy will ultimately be a game changer in the development of RI in Nigeria, as it will not only prompt demand from market forces, but it will also engender regulatory push and an added impetus to market forces.
