IMPACT OF GREEN FINANCING ON THE SUSTAINABILITY OF NIGERIA’S ECONOMY

Abstract

Economic sustainability is pivotal to a nation’s growth and development, yet it faces several challenges including Green Prevention Costs, Green Evaluation Costs, and green Internal Failure Costs. This study examined the impact of green financing on the sustainability of Nigeria’s economy from 2009 to 2023. Specifically, it evaluates the effects of green prevention costs, green evaluation costs and green internal failure costs on Nigeria’s economic sustainability, using the dependent variable and measured by Real Gross Domestic Product (RGDP). Trade Openness (TROP) was used as a control variable. Secondary data were sourced from the World Bank’s Pollution Management database and Central Bank of Nigeria Statistical Bulletins, with analysis conducted employing Robust Least Squares (RLS) in E-Views 10. The findings indicate that both GNPC and GNIC had a significant positive effect on economic sustainability, while GNEC had an insignificant effect. The study recommends that there is a need for increased funding for Green Internal Failure Costs and re-assess the emphasis on Green Evaluation Costs.