LocationsBy Varsha Redkar-Palepu, Deputy Resident Representative – Programme
Nigeria’s Ethical Trade Journey: How Human Rights Drive Sustainable Growth
December 11, 2025
Ms Varsha Redkar-Palepu - Deputy Resident Representative – Programme
Toluwalope Oresanya|UNDP Nigeria
Introduction: Creating Growth in Human Rights
Reflecting on the 2025 World Human Rights Day, which marks 75 years since the adoption of the Universal Declaration of Human Rights in 1948, I am reminded of how deeply these principles shape our daily lives. Celebrated annually on December 10th since 1950, this year’s theme, ‘Our Everyday Essentials’, reframes human rights as necessities, not lofty ideals. Rights such as safety, food, housing, dignity, and having a voice are the foundations of human well-being.
Embedding human rights into corporate culture is not just ethical; it is fundamental to sustainable business and global stability. The 2025 theme offers a platform for government officials, civil society, businesses, and international actors to advance understanding of the UN Guiding Principles on Business and Human Rights (UNGPs) and integrate them into Nigeria’s economic frameworks.
The adoption of the United Nations Guiding Principles on Business and Human Rights (UNGPs) into Nigeria’s economic governance framework marks a transformative shift in how the country approaches development. In practice, this means that doing business in Nigeria must not only promote trade and investment but also uphold ethical standards, protect workers’ rights and dignity, and ensure environmental sustainability. The NaNAP-BHR reflects Nigeria's formal commitment to embedding these principles into its economic systems, thereby fostering inclusive growth that benefits businesses, employees, and consumers alike.
For the United Nations Development Programme (UNDP), this goes beyond being a policy milestone; it is an opportunity to help Nigeria reset its growth trajectory on the foundations of dignity, accountability, and rights for all. Ethical business practices build trust, enhance brand reputation, and foster long-term stability. Companies that prioritize fair wages and safe working conditions often see increased employee satisfaction and productivity, while consumers reward responsible brands with loyalty, ultimately leading to higher profits and sustainable success.
Economic Momentum: Riding the Tide of Opportunities for Responsible Growth
While Nigeria’s economy shows impressive strength in trade, the real challenge lies in attracting the kind of long-term investment that drives jobs, technology transfer, and sustainable development. Recent years have seen significant growth in trade performance, signaling resilience and opportunity. For instance, in the first quarter of 2025, Nigeria recorded a total trade volume of $25 billion USD with exports valued at $14.2 billion and imports at $10.6 billion USD resulting in a surplus of $35.8 billion USD. This marked a 52 percent quarter-on-quarter improvement and 17.5 percent year-on-year growth. However, this progress contrasts sharply with the volatility of foreign direct investment, which remains far below the levels needed to unlock transformative impact.
This imbalance tells an important story: strong trade figures alone cannot guarantee inclusive prosperity. Nigeria’s economic gains must be matched by investor confidence in governance, transparency, and social responsibility. Global investors increasingly prioritize these factors over short-term returns, seeking environments where ethical standards and stability go hand in hand.
Similarly, while export diversification and improved balance of payments reflect positive trends, the persistent weakness in long-term capital inflows underscores why frameworks like the National Action Plan on Business and Human Rights (NAP-BHR) matter. Embedding human rights and accountability into economic systems is not just a moral imperative—it is a strategic necessity for sustainable growth. By aligning trade success with responsible investment, Nigeria can position itself as a trusted destination for capital that builds lasting value for businesses and communities alike.
Linking Human Rights to Trade and Investment Outcomes
The combination of business and human rights with Nigeria's trade and investment landscape is underemphasized. A study in 2003 found that regulatory quality, a key component of governance, positively impacts economic growth and that strong institutions are essential for enabling stable economic conditions. It supports the idea that governance and accountability are critical for attracting sustainable, high-quality investments.[1] By mainstreaming BHR standards into its national economic order, Nigeria can strengthen its reputation as a safe, open, and rights-based environment for investment.
Through the Africa Continental Free Trade Area (AfCFTA), Nigeria can take the lead in ethical trade and investment. By incorporating the NAP-BHR into its trade policy, Nigeria can show a regional model where trade surpluses are social dividends, business conduct upholds environmental and social norms, and communities reap direct benefits from investments. This focus is notable at a moment when Nigeria is looking to increase its role in the world.
Conclusion: Partnerships for Ethical Prosperity
Nigeria stands at a promising intersection, trade surpluses are rising, non-oil exports are rising, and remittances are strong. But the uncertainty of foreign direct investment signals a more pernicious issue: if Nigeria does not embed human rights and accountability into its economic framework, it will exclude sustainable, long-term development.
With sustained partnership and field application, Nigeria could become a continental example of ethical investment and trade where prosperity is measured not only in terms of profits but also in terms of dignity, sustainability, and opportunity for all.
[1] Lopes, L. E. M., Packham, N., & Walther, U. (2023). The effect of governance quality on future economic growth: an analysis and comparison of emerging market and developed economies.