Impact of ESG Constraints on Throughput Performance: A Comparative Study of Fidelity Bank and UBA in 2024

This study explores the impact of Environmental, Social, and Governance (ESG) constraints on throughput performance in the Nigerian banking sector using Fidelity Bank and UBA as comparative case studies. Drawing on the Theory of Constraints and Throughput Accounting, the research employs ESG metrics aligned with IFRS S1 and S2, including emissions data, board diversity, CSR expenses, and ESG scores. Pearson correlation analysis reveals a positive relationship between ESG performance and Return on Assets (ROA), with Fidelity Bank’s environmental investments correlating with higher efficiency. The findings offer novel insights for banks in emerging markets striving to balance sustainability with operational efficiency. The paper concludes with recommendations for balanced ESG strategy and improved emissions disclosure, highlighting implications for regulators, investors, and bank managers.