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Authors
Rachael Okwudili Iliemena-Ifeanyi, PhD 1 & Michael Jimoh Amedu, PhD 2
1 Department of Accountancy, Nnamdi Azikiwe University, Anambra State
2 Department of Accounting, Edo State Polytechnic Usen, Edo State
Correspondence: [email protected]
Abstract
This study examined sustainable finance and green bond accounting as mechanisms for integrating environmental objectives into corporate finance in Nigeria. The objectives were to determine the extent to which Nigerian firms adopt green bond accounting to fund environmentally beneficial projects, assess how green bond issuance and investment contribute to renewable energy financing, and identify challenges hindering green bond integration in financial strategies. A descriptive research design was employed, with a sample of 196 respondents selected through snowball sampling from stakeholders engaged in sustainable finance, green bond issuance, renewable energy development, and corporate sustainability practices. Data were collected via electronic questionnaires and analyzed using percentage analysis, frequency counts, and Pearson Chi-squared tests. The results showed that although Nigerian firms incorporate green bond accounting into financial strategies, the level of implementation remains low (p = 0.000). Findings further revealed that green bond issuance and investment significantly support renewable energy infrastructure financing (p = 0.000). However, firms encounter moderate but significant challenges, including low awareness, regulatory gaps, and institutional capacity constraints (p = 0.000). The study concludes that, while Nigerian firms acknowledge the importance of embedding environmental objectives into finance, barriers limit full-scale adoption. It recommends that regulators and industry associations collaborate on targeted training and awareness programs to strengthen understanding of green finance and foster broader adoption of green bond strategies, ultimately promoting sustainable development and financial resilience in Nigeria.
Keywords: Sustainable finance, Green bond accounting, Renewable energy, Corporate finance, and Financial strategies.
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