Global Journal of Economic and Finance Research

This study investigates the role of climate finance and Environmental, Social, and Governance (ESG) practices in fostering sustainable energy development in Nigeria. Drawing on survey responses (n = 228), key informant interviews, chi-square tests, regression analysis, and triangulation, the research explores the socioeconomic drivers, institutional barriers, and regulatory gaps shaping Nigeria’s energy transition. Results reveal that climate finance access (β = 0.482), ESG compliance (β = 0.356), and policy/regulatory support (β = 0.291) significantly predict sustainable energy outcomes. Interviews corroborated these findings, highlighting weak enforcement of CBN’s sustainable banking principles, limited green bond penetration, and inadequate incentives as major bottlenecks. The study concludes that Nigeria’s sustainable energy transition requires coordinated financial innovation, robust ESG integration, and strengthened regulatory frameworks. By bridging empirical gaps and providing policy-relevant recommendations, the study contributes to advancing scholarship on climate finance and sustainable development in emerging economies.

Climate finance, ESG practices, sustainable energy development, policy gaps, green bonds, Nigeria, energy transition.

1. Abdullahi, I. A., Obansa, S. A. J., & Magaji, S. (2024). Petroleum Price Dynamics and Inflation in Nigeria: A Granger Causality Analysis, 1990–2023. Journal of Economics and Financial Issues, 7(1), 1–19.
2. Adebayo, T. O., Oyewole, O. O., & Adedoyin, F. O. (2022). Inflation, corruption, and unemployment in Nigeria: A panel data analysis. International Journal of Economics and Finance, 12(5), 1–9.
3. Adekoya, A. A., Magaji, S., & Ismail, Y. (2025). Empirical Analysis of the Impact of Unemployment on Economic Growth in Nigeria. International Journal of Innovative Finance and Economics Research, 13(2), 63–80. https://doi.org/10.5281/zenodo.15311427
4. Adenle, A. A. (2020). Assessment of barriers to renewable energy and energy efficiency technologies in Africa. Renewable and Sustainable Energy Reviews, 110, 483–492. https://doi.org/10.1016/j.rser.2019.05.014
5. Akinyemi, F., & Salisu, H. (2023). Economic instability and sustainable investment in Sub-Saharan Africa: The ESG perspective. Journal of Sustainable Finance & Investment, 13(2), 167–184.  https://doi.org/10.1080/20430795.2022.2027709
6. Central Bank of Nigeria. (2021). Nigeria’s sustainable banking principles report. CBN.
7. Chinedu, C. J., Magaji, S., & Musa, I. (2021). Empirical analysis of the role of money market instruments on economic growth in Nigeria: 1994–2018. Lapai Journal of Economics, 5(2), 24–37.
8. Climate Policy Initiative. (2022). Landscape of climate finance in Africa. CPI.
9. DiMaggio, P., & Powell, W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organisational Fields. American Sociological Review, 48(2), 147–160.
10. Federal Government of Nigeria. (2021). Nigeria’s energy transition plan. Abuja: FGN.
11. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
12. Igwe, G. U., Magaji, S., & Darma, N. A. (2021). Analysis of the impact of financial development indicators of the banking, insurance, and pension sectors on economic growth in Nigeria. FORCE: Focus on Economic Research in Contemporary Economics, 2(2), 140–156.
13. International Energy Agency. (2022). Africa Energy Outlook 2022. IEA.
14. Ismail, Y., Musa, I., & Magaji, S. (2024). Assessment of the Impact of Government Health Expenditure on Economic Growth in Nigeria. Journal of Arid Zone Economy, 4(3), 132–151. https://bit.ly/JazeIssue4(3)
15. Jafaru, Y., Magaji, S., & Abdullahi, I. A. (2024). Poverty, Family Status, and Crime: Insights from Gwagwalada, Abuja, Nigeria. International Journal of Research Publication and Reviews, 5(5), 6745–6755.
16. Magaji, S., Abubakar, M. M., & Temitope, Y. A. (2022). Impact of International Trade on Economic Growth: The Granger Causality Test Approach. International Journal of Accounting and Management Sciences, 1(2), 113–130.
17. Magaji, S., Ahmad, A. I., Sabiu, S. B., & Yunusa, A. A. (2024). From deforestation to pollution: Unravelling environmental challenges in Nigeria and Pakistan. International Journal of Humanities, Social Science and Management (IJHSSM), 4(2), 805–814.
18. Magaji, S., Ayo, A. A., Ibrahim Musa and Ali, S. (2019). Relative impact of monetary policy instructions on economic growth in Nigeria. Lapai Journal of Economics. 3(2), 93-118
19. Magaji, S., Musa, I., & Dogo, S. S. (2023). Analysis of the Impact of Banking Sector Credits on the Real Sector in Nigeria. International Journal of Management and Business Applied, 2(1), 12–20.
20. Magaji, S., Tanko, Y., & Musa, I. (2025). The Effect of Green Loans and Green Mortgages on Climate Change Mitigation in Nigeria. International Journal of Current Science Research and Review, 8(6), 3124–3138.
21. Nazifi, D. A., Magaji, S., & Amase, J. (2022). Macro-economic impact of oil price shocks on government expenditure and economic growth in Nigeria. SDMIND Journal of Management, 13(Special).
22. Okonkwo, C. E., & Eze, R. A. (2022). Environmental, social and governance practices in Nigeria: Drivers, challenges and implications. African Journal of Corporate Governance, 7(1), 55–72.
23. Sabiu, B. S., & Magaji, S. (2024). Effect of oil exploration and climate change on the Niger Delta region of Nigeria. Journal of Development and Society, 6(1), 36–49.
24. Suleiman, H., Magaji, S., & Musa, I. (2025). Assessing the Effect of Green Loans and Carbon Finance on Sustainable Cities and Community Development in Nigeria: An Analysis of Urban Sustainability Indices. International Journal of Innovative Science and Research Technology, 10(5).
25. Tanko, Y., Magaji, S., & Musa, I. (2025). Effect of green finance on climate change mitigation in Nigeria. International Journal of Economic Perspectives, 19(7), 1–22.
26. United Nations Framework Convention on Climate Change. (2021). Introduction to climate finance. UNFCCC.
27. World Bank. (2021). ESG investing in emerging markets: Opportunities and challenges. World Bank Publications.
28. Yakubu, J., Magaji, D. A., & Magaji, S. (2025). Assessing the Socio-economic Impact of Climate Change and Poverty in Birnin Kudu Local Government, Jigawa State, Nigeria. African Journal of Social Sciences and Humanities Research, 8(2), 11–31.
29. Zailani, H. S., Magaji, S., & Jafaru, Y. (2025). Examining the methods in achieving effective conflict resolution and peacebuilding in Northeastern Nigeria. GAS Journal of Arts, Humanities and Social Sciences (GASJAHSS, 3(5), 12–18.