Strengthening Climate Finance and ESG Practices to Foster Sustainable Energy Development in Nigeria

ABSTRACT: 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.