Green Finance and Carbon Footprint in Nigeria

Abstract: The study examined the effect of green finance on carbon footprint in Nigeria for the period of 2005 to 2023. The specific objectives of the study were to find out if green financing factors such as green bond (GB), green investment (GINV), environmental climate change funds (ECCF) and environmental tax (ENVTAX) minimizes carbon footprint in Nigeria. The fully modified least squares (FMOLS) regression techniques was employed for the analysis of data, and the results revealed that green bond (GB) has significant positive effect on carbon footprint, green investment (GINV) has a weak inverse effect on carbon footprint, while environmental climate change funds (ECCF) has a weak effect on carbon footprint, environmental tax (ENVTAX) is seen to have significant positive relationship with carbon footprint in Nigeria. The study recommends that policymakers should focus on several key areas to enhance environmental and economic sustainability. For instance, issuance of green bond should be given a priority by making them accessible to industrial firms; and must also be closely followed by strict monitoring of the effects of carbon neutrality initiatives, establishing stringent greenhouse gas emission standards, introducing incentive mechanisms to encourage low-carbon actions by firms. Keywords: Green Finance, Green Bond, Green Investment, Carbon Footprint, Statistical and Econometric method. Title: Green Finance and Carbon Footprint in Nigeria Author: OMOGBAI, Courage Agbologa, OSIFO Kessington Edos International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 13, Issue 1, April 2025 - September 2025 Page No: 453-465 Research Publish Journals Website: www.researchpublish.com Published Date: 20-August-2025 DOI: https://doi.org/10.5281/zenodo.16910508 Paper Download Link (Source) https://www.researchpublish.com/papers/green-finance-and-carbon-footprint-in-nigeria