SUSTAINABILITY AUDITING IN A GLOBALIZED BUSINESS ENVIRONMENT: CHALLENGES AND OPPORTUNITIES IN NIGERIA

Abstract

Sustainability auditing has emerged as a vital mechanism for promoting transparency,
accountability, and improved Environmental, Social, and Governance (ESG) outcomes within
the global business landscape. This paper critically examines the challenges and opportunities
associated with implementing sustainability auditing frameworks in Nigeria’s corporate
environment. Using an exploratory research design, relevant literatures were systematically
reviewed to assess the current state of sustainability auditing adoption in Nigeria. The findings
reveal several constraints, including a shortage of local expertise, gaps in regulatory and
institutional frameworks, poor data quality and collection mechanisms, limited awareness, and
the prevalence of short-term profit-oriented business strategies. Despite these challenges, the
study identifies significant opportunities for sustainability auditing to drive responsible business
conduct, improve investor confidence, and stimulate inclusive economic growth. The paper
suggests that, for sustainability auditing to realize its transformative potential in Nigeria,
businesses must integrate it into their strategic decision-making processes, while government and
regulatory bodies must play a proactive role in facilitating the development of relevant
infrastructure and policy support. This dual approach can help position Nigerian enterprises to
compete effectively in a globalized economy and attract sustainable investment.