Modelling investment drivers in the Nigerian green sukuk market: Implications for sustainable infrastructure financing and environmental management

Abstract

This study adopted Structural Equation Modelling (SEM) to validate the seven hypothesized constructs as drivers of the intention to invest in the Nigerian Green Sukuk (GS) market. It provides a scientific premise for formulating policy suggestions aimed at potential issuers and regulatory authorities towards climate change and pollution mitigation in Nigeria. The study relied on literature and expert opinions in developing the constructs and relevant indicators to develop its framework. A questionnaire was used to collect information from potential investors in the GS market, including individual stockholders, institutional investors, and financial intermediaries. A total of 338 valid responses were obtained within the period scheduled for data collection, with 321 considered suitable for SEM. The findings revealed significant relationships between risk (β=0.986, p<0.05), attitude (β=0.739, p<0.05), perceived behavioural control (β=1.000, p<0.05), information availability (β=0.954, p<0.05), growth ((β=0.932, p<0.05), demographic factors (β=0.890, p<0.05) and the intention to invest in GS. The results present cost-effective strategies for prioritizing specific measures, providing pragmatic guidance to GS issuers and regulatory authorities, and formulating marketing policies to motivate green investments. The study offers insights into investors’ motivations for purchasing GS and practical recommendations for ethical sustainability finance in Nigeria.