IMPLEMENTATION OF GREEN FINANCE AS A CATALYST FOR GREEN INFRASTRUCTURE DEVELOPMENT IN NIGERIA

Purpose: The quest for environmental sustainability have become a global concern to every sector of life. The aim of study is to assess the level of commitment of financial institutions, and construction professionals towards green infrastructural development in Nigeria through green finance implementation.

Design/methodology/approach: A survey design approach was used in this study. A purposive sampling technique was used to select four hundred construction professionals, and ten financial institutions. Data collected were analysed using descriptive statistics. The study evaluated the level of awareness and implementation of green finance practices among construction professionals, and financial institutions in Nigeria. Critical inhibitors to green finance implementation in green infrastructure development were also assessed. The study revealed a response rate of 74.9%. Hence the response rate was adequate for the study.

Findings: The study showed that there is high level of awareness of green finance practices among construction professionals and financial institutions. In contrast to the level of awareness, the study revealed that low level of implementation of green finance practices in infrastructure development in Nigeria. Therefore, this study concluded that a high level of awareness does not lead to a high level of implementation of green finance practices. It was concluded that perceived high risk and low return on investment, fear of higher investment costs, weak financing structure, investors' lack of in-house capacities to assess greenness of bonds, capital constraint, lack of investor incentives, financial institutions incapability are the critical factors inhibiting the implementation of green finance practices in green infrastructure development in Nigeria.

Research limitations/Implications: The limitations of this study include the use of only four Cities in Nigeria. There is need to increase the number of cities and geopolitical zones as well as the sample size. This study has shown that high level of awareness of green finance practices did not lead to corresponding high level of implementation of green finance practices in the study area.

Practical implications: This study recommended that construction professionals operating in Nigerian built environment, and Nigerian banks should build their capacities towards meeting sustainable development goals. It is also recommended that incentives should be given to investors who want to develop green infrastructure.

Originality/value: The study has established the critical factors affecting the implementation of green finance practices in green infrastructure development in Nigeria.