EFFECT OF GREEN FINANCE ON WASTE PROCESSING AND RECYCLING (A COST BENEFIT FOR SMES IN KOGI STATE)

Small and Medium-Sized Enterprises (SMEs) are vital to both economic development and environmental sustainability. However, their adoption of waste processing and recycling (WPR) practices is often hindered by limited access to financing tailored for sustainable initiatives. This study examines the impact of green finance—specifically green bonds and green loans—on WPR among SMEs in Kogi State, Nigeria, with an emphasis on cost-benefit outcomes. Adopting a quantitative research design, data were gathered from 268 SMEs through structured questionnaires and analyzed using descriptive statistics and multiple regression analysis. The findings indicate that green bonds (? = 0.228) and green loans (? = 0.542) significantly and positively influence the adoption of WPR initiatives. These results suggest that green finance not only supports environmental stewardship but also contributes to the long-term financial viability of SMEs. Accordingly, the study recommends that the Kogi State government and financial institutions implement supportive measures—such as tax incentives and co-financing arrangements—to enhance access to green finance. It further encourages the development of sustainable finance networks to strengthen eco-friendly practices within the SME sector.

0 18 May, 2025

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JBMIC PORTAL SYSTEM

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