Talent shortages top worry for Nigerian CEOs as climate risk shapes M&A

Nigerian chief executives are increasingly reshaping how they invest, hire and grow, as talent shortages and climate risks begin to directly influence capital allocation and deal-making decisions, according to PwC’s 2026 Global CEO Survey.

The survey shows that 38% of Nigerian CEOs now factor climate risks into capital allocation and mergers and acquisitions decisions, while 41% embed climate criteria into supply chain management, signalling a shift from sustainability as a compliance issue to a boardroom-level business consideration.

At the same time, talent availability has emerged as the single biggest threat to Nigerian businesses, cited by 38% of CEOs—on par with cybersecurity risk—as macroeconomic pressures ease.

The findings point to a rebound in executive confidence. About 91% of Nigerian CEOs expect the economy to improve in 2026, up from 64% a year earlier, while 56% say they are confident in revenue growth over the next 12 months, nearly double the global average of 30%.

But as inflation fears and macro volatility recede, CEOs are increasingly focused on firm-level constraints, particularly access to skilled workers and exposure to technology and climate-related risks.

“Macroeconomic stability has increased CEO confidence, but leaders are now grappling with cybersecurity risks, rising talent pressures and technological disruption,” said Sam Abu, PwC’s Regional Senior Partner for the West Market Area.

Talent Becomes a Strategic Risk

The survey underscores how Nigeria’s skills gap is becoming a structural business risk. Talent availability is now the most significant environmental, social and governance (ESG)-linked concern, with executives warning it could limit growth, weaken productivity and complicate expansion plans.

Social inequality, which affects workforce stability and consumer demand, was also cited by 25% of CEOs as a rising concern.

While only 13% of Nigerian CEOs currently rank climate risk as a top threat—up sharply from 3% in 2025—the survey shows climate considerations are already influencing decisions that affect cash flow and long-term value.

More than a third of CEOs now integrate climate risk into capital allocation and M&A, a notable development in a market where investment decisions have traditionally been driven by short-term returns and macro conditions.

The shift comes as Nigeria prepares for tighter sustainability reporting requirements, including the mandatory adoption of IFRS Sustainability Disclosure Standards, raising the cost of ignoring climate exposure across operations and supply chains.

Reinvention Over Expansion

Rather than aggressive geographic expansion, Nigerian CEOs are prioritising reinvention. Nearly half say their companies have entered new sectors over the past five years, with technology, power and utilities, and telecommunications leading future investment interest.

International expansion remains cautious, with 56% saying they do not plan overseas investment in the next year—a sign that capital is being redeployed inward to strengthen resilience, technology and skills.

“In periods of rapid change, the instinct to slow down is understandable, but it is also risky,” the report noted, warning that companies delaying investment in people, systems and sustainability risk falling behind.