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Environmental Mitigation Financing and Financial Efficiency of Listed Industrial Goods Firms in Nigeria

Author

Listed:
  • ADENIRAN, Taiwo Esther

    (Rufus Giwa Polytechnic Owo, Ondo State Nigeria. Orcid Number)

  • OLUWAREMI Joel Bali

    (Afe Babalola University, Ado Ekiti Ekiti State Nigeria.)

  • AKINBOBOLA Oluwatobiloba Bolanle

    (Afe Babalola University, Ado Ekiti Ekiti State Nigeria.)

Abstract

This study investigated the effect of environmental mitigation financing on financial efficiency of listed industrial goods firms in Nigeria. Financial efficiency is measured using Economic Value Added, while environmental mitigation financing is proxied by green loan financing, pollution control investment, renewable energy investment, and environmental remediation and clean-up cost. An ex post facto research design was adopted using a balanced panel of 11 industrial goods firms listed on the Nigerian Exchange Group over the period 2015 to 2024. Secondary data were sourced from audited annual reports, sustainability disclosures, and exchange filings, and analysed using panel regression techniques with robust standard errors. The results indicated that green loan financing has a negative but statistically insignificant effect on financial efficiency, suggesting that access to green credit alone does not guarantee value creation. Pollution control investment showed a negative and significant effect on Economic Value Added, reflecting short term cost pressures associated with compliance driven environmental expenditure. In contrast, renewable energy investment exerted a strong positive and significant influence on financial efficiency, while environmental remediation and clean-up cost also recorded a positive and significant effect, indicating that proactive environmental actions enhance operational efficiency and stakeholder confidence. Based on these findings, the study recommended that industrial goods firms prioritise strategic environmental investments, particularly renewable energy initiatives, integrate environmental remediation into core operational planning, and evaluate pollution control expenditures using value-based performance measures. Policymakers and financial institutions were also encouraged to strengthen green finance frameworks by linking funding access to measurable efficiency outcomes.

Suggested Citation

  • ADENIRAN, Taiwo Esther & OLUWAREMI Joel Bali & AKINBOBOLA Oluwatobiloba Bolanle, 2026. "Environmental Mitigation Financing and Financial Efficiency of Listed Industrial Goods Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(3), pages 560-575, March.
    • Handle: RePEc:bcp:journl:v:10:y:2026:i:3:p:560-575
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    References listed on IDEAS

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    1. Huiyuan Liu & Kaiyao Wu & Qiuhua Zhou, 2022. "Whether and How ESG Impacts on Corporate Financial Performance in the Yangtze River Delta of China," Sustainability, MDPI, vol. 14(24), pages 1-17, December.
    2. Mr. Tobias Adrian & Ms. Marina Moretti & Ana Carvalho & Hee Kyong Chon & Katharine Seal & Fabiana Melo & Jay Surti, 2023. "Good Supervision: Lessons from the Field," IMF Working Papers 2023/181, International Monetary Fund.
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