Examining How Green Finance and Investments Drive Sustainable Performance in Nigerian Manufacturing Industries

Abstract

This study investigates how green investment and green finance affect the sustainable business performance of listed manufacturing firms in Nigeria. Using an ex-post facto design, the research analysed secondary data from 35 companies over ten years (2015–2024), totalling 350 firm-year observations. Data came from audited annual reports and sustainability reports. The study analysed descriptive statistics, correlation, Random Effects GLS regression, and Panel Corrected Standard Errors for robustness. The findings reveal that both green investment and green finance have a positive and significant influence on sustainable business performance. Their relative effects vary across estimation methods, indicating that both are important. Manufacturing firms should treat green finance and internal green investment as complementary strategies. Policymakers should develop green finance infrastructure and tighten environmental regulations to encourage sustainable practices. Overall, this paper provides longitudinal evidence from Africa's largest economy, showing that green capital allocations are strategic drivers of sustainability, not unrecoverable costs.