Islamic Green Finance and Solid Waste Management in Nigeria
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Date
2025
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Department of Finance and Accounting, University of Nairobi, Kenya
Abstract
The growing population and urbanization have increased the amount of solid waste generation in
Nigeria, leading to environmental degradation. The management of such waste has however
become a challenge due to inadequate funding. As government financing is insufficient for effective
waste management, Islamic green finance seems to be a viable alternative due to its
environmentally friendly shariah principles. Although, some Islamic green financial products have
been identified, empirical research is lacking in this regard. This study therefore assessed the
potential impact of Islamic green finance on solid waste management in Nigeria. Data were
collected from staff of waste collection services firms which are registered with Environmental
Health Council of Nigeria (EHCON). Questionnaire was administered to the respondents through
the contact of the companies. Descriptive statistics and logistic regression were used to analyze
the data. The study found that green murabaha (p<0.05), green mudharaba (p<0.05), green
musharaka (p<0.01) and green ijarah (p<0.1) were positively and significantly correlated the
turnover growth of solid waste management firms. The study however, found that green musharaka
wa mutanaqisah (p >0.1) had insignificant, positive relationship while green sukuk (p>0.1) had
insignificant, negative relationship with turnover of solid waste management firms in Nigeria. The
study concluded that Islamic green financial services are needed for improving solid waste
management in Nigeria. Based on the findings and conclusion therefrom, it recommended that
Islamic banks in Nigeria should adopt shariah-compliant green financial products and channel
their funding to green investment including solid waste industry.
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Citation
Jimoh et al. (2025)