Nigeria as a Global Hub for Traditional and Islamic Green Financing

Abstract

The idea that a nation cannot have a thriving economy whilst protecting the environment has long been discarded. The idea that a nation cannot have a thriving economy whilst protecting the environment has long been discarded. The growing sustainability advocacy has inspired the growth of enterprises with green objectives and created investment opportunities for every nation. One of such economic innovations of this growing advocacy is “green financing”. Green financing basically aims to increase financial flows, through investors and financial institutions, to aid entities with green objectives in fulfilling developmental priorities. However, the potentials of this practice are far from being realized in Nigeria. In embracing green financing, Nigeria can thrive economically and sustain her environment. Why then is this trend not an enviable reality in Nigeria? This article posits that the existence of a proper framework that facilitates the creation and existence of entities with developmental priorities, incorporates green financing instruments into the activities of current financial institutions and guarantees the protection of investors, is key to transforming Nigeria’s current reception to traditional and Islamic green finance, making her a global hub for these trends. Sustainability advocacy has inspired the growth of enterprises with green objectives and created investment opportunities for every nation. One of such economic innovations of this growing advocacy is “green financing”. Green financing basically aims to increase financial flows, through investors and financial institutions, to aid entities with green objectives in fulfilling developmental priorities. However, the potentials of this practice are far from being realized in Nigeria. In embracing green financing, Nigeria can thrive economically and sustain her environment. Why then is this trend not an enviable reality in Nigeria? This article posits that the existence of a proper framework that facilitates the creation and existence of entities with developmental priorities, incorporates green financing instruments into the activities of current financial institutions and guarantees the protection of investors, is key to transforming Nigeria’s current reception to traditional and Islamic green finance, making her a global hub for these trends.