FINANCIAL TECHNOLOGY AND ENVIRONMENTAL SUSTAINABILITY IN NIGERIA: AN EMPIRICAL ANALYSIS
Keywords:
Fintech, Financial inclusion, Environmental sustainability, Energy consumption, Nigeria.Abstract
The issues of environmental sustainability are still a major challenge in Nigeria, especially due
to the country’s dependence on carbon-based energy sources and the absence of adequate
infrastructural capacity. Consequently, this research work investigates the impact of financial
technology (FinTech) on environmental sustainability in Nigeria from 1986 to 2024 using a
Vector Error Correction Model. The data was collected from the Central Bank of Nigeria
(CBN), World Bank, and National Bureau of Statistics (NBS). The results show that financial
technology (fintech) and financial inclusion are both positive and significantly related to
environmental sustainability. Financial infrastructure and government expenditure show
positive but statistically insignificant impacts. Energy consumption and urbanization
negatively affect environmental sustainability but are insignificant. The error correction result
shows a slow movement towards the long-run equilibrium. Moreover, the model accounts for
65% of the variation in environmental sustainability. Therefore, based on the results,
policymakers are advised to develop digital finance infrastructure, education, and inclusion
initiatives in order to use the environmental potential of FinTech.
