HARNESSING GREEN ENERGY FOR ENHANCED VALUE: EMPIRICAL INSIGHTS FROM NIGERIA'S LISTED INDUSTRIAL GOODS FIRMS

Rising energy costs, which harmfully affect the environment in areas where firms are located, have raised growing concerns, thereby increasing interest in green energy as a viable alternative to reduce environmental degradation, greenhouse gas emissions, and over-dependence on fossil fuel–based energy sources. Against the backdrop of rising energy costs, environmental concerns, and increasing investor attention to sustainability, this study harnesses green energy to enhance value of listed industrial goods firms in Nigeria. The study employed a non-survey research design, using a sample size of nine (9) industrial goods firms from a total population of thirteen (13) that were listed on the Nigerian Exchange (NGX) group, with data extracted from the annual reports and accounts of the sampled firms for a period of 15 years (2010–2024). Data were analyzed using descriptive statistics to provide a summary of the variables, and correlation analysis was performed using the Pearson correlation technique. The multiple regression results demonstrate that EE and GER significantly influence the value of the selected industrial goods firms in Nigeria, while the ECRR has an insignificant impact on firm value. Therefore, the study concludes that improvements in firm value among listed industrial goods firms in Nigeria are driven more by strategic investments in green energy efficiency and the adoption of green energy sources than by short-term energy cost considerations. Consequently, the study recommends that the management of the sampled listed industrial goods firms in Nigeria prioritize strategic investments in energy-efficient technologies and production processes, as improvements in energy efficiency have been shown to enhance firm value. The adoption and integration of green energy sources into their energy mix must be increased to reduce environmental risks, improve operational sustainability, and strengthen market valuation. In addition, by investing in clean, efficient energy systems that promote sustainable industrial growth and long-term firm value, management should align their energy efficiency and green energy initiatives with the United Nations Sustainable Development Goals (SDGs) 2030, particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).