Impact of Green Finance on Sustainable Development in Nigeria.
Year: 2025
Type: article
Abstract: This study investigates the impact of green finance on sustainable development in Nigeria, focusing on the role of green bonds, green loans, and renewable energy investments. The objectives include examining the relationship between green finance instruments and Green GDP, a proxy for sustainable development, from 2015 to 2024. Using an ex post facto research design, secondary data from Nigerian Development Bank were analyzed. The population comprises all green finance activities undertaken by the Nigeria Development Bank. A purposive sampling technique was used to select data points that reflect NDB’s active involvement in green finance during the study period. Descriptive statistics and Ordinary Least Squares (OLS) regression were employed to analyze the data. The results show that green bonds issuance, green loans and credit facilities, and renewable energy investments have statistically significant positive effects on Green GDP. Specifically, renewable energy investments have the most substantial effect, followed by green loans and bonds. The study concludes that green finance plays a critical role in promoting sustainable economic growth in Nigeria. It recommends increasing green bond issuance, expanding green loans, and investing in renewable energy to foster economic resilience and environmental sustainability. Future research should address potential autocorrelation issues in the model to enhance robustness and provide more precise policy recommendations
Authors: Eke, Robert Ike, PhD, FCA, Emasogbe, Matthew Oghene
Institution: Wellspring University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7077145510
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