THE IMPACT OF GREEN FINANCE AND SUSTAINABLE DEVELOPMENT ON THE GROWTH OF THE NIGERIAN ECONOMY (2010– 2022)
Abstract
This study investigates the impact of green finance on economic growth in Nigeria from 2010 to 2022. While environmental financing has gained prominence globally, its economic effects in developing economies like Nigeria remain unclear. The main objective is the impact of green finance and sustainable development on the growth of the Nigerian economy, while specific objectives focused on examining the impact of green bonds, green credit, and green investments on GDP growth rate of Nigeria. Using time series data from the Central Bank of Nigeria and World Bank, the study employed ordinary least squares regression, with GDP growth rate as the dependent variable and various green finance indicators as independent variables. The analysis revealed that green bonds and green credit have marginally significant negative relationships with economic growth, while green investments demonstrate a significant positive impact. These findings suggest that specialized green finance instruments may initially create transition challenges, while broader green investments offer immediate economic benefits. The study concludes that Nigeria's sustainable finance space is evolving, with different mechanisms showing varied economic effects. It recommends enhancing the economic efficiency of green bonds and credit, while significantly scaling up comprehensive green investment programs to maximize both environmental and economic returns.
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