IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-3p2506-2516.html
   My bibliography  Save this article

Effect of Government Incentives on Execution of Solar Power Projects in Southwest, Nigeria

Author

Listed:
  • Bayo-Ilawole, A. J.

    (Department of Project Management Technology, Federal University of Technology, Akure)

  • Obamuyi, T. M.

    (Department of Project Management Technology, Federal University of Technology, Akure)

  • Adepoju, A. O

    (Department of Project Management Technology, Federal University of Technology, Akure)

Abstract

Successful renewable energy projects are crucial to maintaining a cleaner and sustainable environment. Thus. it becomes critical for the government to intervene and provide incentives due to limited financial constraints by solar power developers, which ultimately impact on their ability to achieve their renewable energy goals. Therefore, this paper examined the effect of government incentives on execution of solar power projects (ESPP) in southwest, Nigeria. The study adopted a research survey design and a census population of 158 firms. The study retrieved and used 109 valid questionnaire collected from the top managers, representing about 69 percent. The data were collected using a digital questionnaire created with CSPro (Census and Survey Processing System). The study adopted inferential statistics of structural equation modelling (SEM). The SEM analyses showed that the variable of government incentive (β = 0.001; P > 0.05) was insignificant at 95 percent level. The insignificance of government incentives could be due to the fact that government incentives in Nigeria are too general or blanket in nature, failing to account for the unique needs and circumstances of individual solar power companies. Sustainability as control variable displayed significant negative relationship with execution of solar power projects in the southwest, which might be due to the high initial investment, lack of sufficient expertise in specific technical matters, inadequate stakeholders’ engagements, and environmental conditions in the region. The study recommended that government budget should support renewable energy fund and regular assessment of incentive programmes in order to boast investors’ confidence and participation in solar power industry. Governments and regulatory bodies should offer incentives for project developers that prioritise sustainability, aligning incentives with unique circumstances of the region. The findings have implications for policymakers, solar power developers, and investors seeking to promote the growth of the solar power industry in the region.

Suggested Citation

  • Bayo-Ilawole, A. J. & Obamuyi, T. M. & Adepoju, A. O, 2025. "Effect of Government Incentives on Execution of Solar Power Projects in Southwest, Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(3), pages 2506-2516, March.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-3:p:2506-2516
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-3/2506-2516.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/effect-of-government-incentives-on-execution-of-solar-power-projects-in-southwest-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Margarita Kalamova & Christopher Kaminker & Nick Johnstone, 2011. "Sources of Finance, Investment Policies and Plant Entry in the Renewable Energy Sector," OECD Environment Working Papers 37, OECD Publishing.
    2. Ajayi, Oluseyi O. & Ajayi, Oluwatoyin O., 2013. "Nigeria's energy policy: Inferences, analysis and legal ethics toward RE development," Energy Policy, Elsevier, vol. 60(C), pages 61-67.
    3. Ji, Qiang & Zhang, Dayong, 2019. "How much does financial development contribute to renewable energy growth and upgrading of energy structure in China?," Energy Policy, Elsevier, vol. 128(C), pages 114-124.
    4. Pueyo, Ana, 2018. "What constrains renewable energy investment in Sub-Saharan Africa? A comparison of Kenya and Ghana," World Development, Elsevier, vol. 109(C), pages 85-100.
    5. Nazim Hussain & Ugo Rigoni & René P. Orij, 2018. "Corporate Governance and Sustainability Performance: Analysis of Triple Bottom Line Performance," Journal of Business Ethics, Springer, vol. 149(2), pages 411-432, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Qunwei & Fan, Zining, 2023. "Green finance and investment behavior of renewable energy enterprises: A case study of China," International Review of Financial Analysis, Elsevier, vol. 87(C).
    2. Lin, Boqiang & Li, Minyang, 2024. "Micro Mechanisms Driving China's Clean Energy Flourish: Business Expansion and Financing," International Review of Financial Analysis, Elsevier, vol. 92(C).
    3. Nurlan Orazalin & Mady Baydauletov, 2020. "Corporate social responsibility strategy and corporate environmental and social performance: The moderating role of board gender diversity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1664-1676, July.
    4. Emilia Vann Yaroson & Soumyadeb Chowdhury & Sachin Kumar Mangla & Prasanta Kumar Dey, 2024. "Unearthing the interplay between organisational resources, knowledge and industry 4.0 analytical decision support tools to achieve sustainability and supply chain wellbeing," Annals of Operations Research, Springer, vol. 342(2), pages 1321-1368, November.
    5. Elkadeem, M.R. & Younes, Ali & Sharshir, Swellam W. & Campana, Pietro Elia & Wang, Shaorong, 2021. "Sustainable siting and design optimization of hybrid renewable energy system: A geospatial multi-criteria analysis," Applied Energy, Elsevier, vol. 295(C).
    6. Ma, Yu & Zhang, Tingting & Qian, Wenyu & Wei, Danqi, 2022. "Financial development, demographic changes, and the growth of the non-hydro renewable energy Industry—An empirical test based on R&D and financing costs," Renewable Energy, Elsevier, vol. 185(C), pages 217-229.
    7. Qadri, Hussain Mohi ud Din & Ali, Hassnian & Abideen, Zain ul & Jafar, Ahmad, 2024. "Mapping the Evolution of Green Finance Research and Development in Emerging Green Economies," Resources Policy, Elsevier, vol. 91(C).
    8. Jagvinder Singh & Varda Sardana & Shubham Singhania, 2024. "Beyond compliance: the business case for gender diversity on boards and sustainability reporting in India," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 15(6), pages 2284-2293, June.
    9. Emmanuel Anyigbah & Yusheng Kong & Bless Kofi Edziah & Ahotovi Thomas Ahoto & Wilhelmina Seyome Ahiaku, 2023. "Board Characteristics and Corporate Sustainability Reporting: Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 15(4), pages 1-26, February.
    10. Lin, Boqiang & Okoye, Jude O., 2023. "Towards renewable energy generation and low greenhouse gas emission in high-income countries: Performance of financial development and governance," Renewable Energy, Elsevier, vol. 215(C).
    11. Patricia Elgoibar & Elio Shijaku, 2022. "Bringing the Social Back into Sustainability: Why Integrative Negotiation Matters," Sustainability, MDPI, vol. 14(11), pages 1-12, May.
    12. Jinshan Zhang & Xuan Shao & Tingshu Sun, 2025. "How Does Environmental Sustainability Commitment Affect Corporate Environmental Performance: A Chain Mediation Model," Sustainability, MDPI, vol. 17(8), pages 1-22, April.
    13. Nicolo, Giuseppe & Zampone, Giovanni & Sannino, Giuseppe & Tiron-Tudor, Adriana, 2023. "Worldwide evidence of corporate governance influence on ESG disclosure in the utilities sector," Utilities Policy, Elsevier, vol. 82(C).
    14. Tang, Songlin & Zhou, Wenbing & Li, Xinjin & Chen, Yingchao & Zhang, Qian & Zhang, Xiliang, 2021. "Subsidy strategy for distributed photovoltaics: A combined view of cost change and economic development," Energy Economics, Elsevier, vol. 97(C).
    15. Oyedepo, Sunday Olayinka, 2014. "Towards achieving energy for sustainable development in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 255-272.
    16. Yousaf, Umair Bin & Ullah, Irfan & Jiang, Junchen & Wang, Man, 2022. "The role of board capital in driving green innovation: Evidence from China," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    17. Wang, You & Gong, Xu, 2020. "Does financial development have a non-linear impact on energy consumption? Evidence from 30 provinces in China," Energy Economics, Elsevier, vol. 90(C).
    18. Kumar, V. & D. Hollebeek, Linda & Sharma, Amalesh & Rajan, Bharath & K Srivastava, Rajendra, 2025. "Responsible stakeholder engagement marketing," Journal of Business Research, Elsevier, vol. 189(C).
    19. Xuhui Peng & Tian Qi & Gang Wang, 2022. "Board Gender Diversity, Corporate Social Disclosures, and National Culture," SAGE Open, , vol. 12(4), pages 21582440221, October.
    20. Cheng Guping & Muhammad Safdar Sial & Peng Wan & Alina Badulescu & Daniel Badulescu & Talles Vianna Brugni, 2020. "Do Board Gender Diversity and Non-Executive Directors Affect CSR Reporting? Insight from Agency Theory Perspective," Sustainability, MDPI, vol. 12(20), pages 1-25, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-3:p:2506-2516. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.