Driving Nigeria’s Economic Growth: the Role of Government Policy in Fostering Sustainable Business in Nigeria
Year: 2026
Type: article
Abstract: This study examines the Role of Government Policy in Fostering Sustainable Business in Nigeria. Recognising the strategic importance of sustainability-oriented business in promoting long-term economic resilience, the study assesses how regulatory frameworks, fiscal incentives, institutional quality, and public investment shape business behaviour and business sustainability outcomes. Using annual time-series data from 1986 to 2022 and applying econometric techniques such as Ordinary Least Squares (OLS), Autoregressive Distributed Lag (ARDL) analysis, and diagnostic tests, the research empirically evaluates the relationships among government policy variables, sustainable business indicators, and economic performance, measured by GDP growth. Findings reveal that supportive government policies, particularly tax incentives, regulatory reforms, and public investment in sustainable sectors, significantly enhance sustainable business activities and contribute positively to economic growth. Conversely, excessive regulatory burdens hinder business and slow economic expansion. Descriptive statistics further highlight uneven regional development across renewable energy investment, infrastructure, and human capital, which collectively influence business outcomes. The study underscores the critical role of coherent, well-implemented policies in promoting sustainable business as a pathway for economic diversification, innovation, and long-term growth in Nigeria. It concludes with policy recommendations to strengthen institutional capacity, improve regulatory efficiency, and expand sustainability-focused incentives.
Authors: Ibrahim Musa, Yahaya Ismail
Institution: University of Abuja
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7166318425