Green Sukuk: As an Alternative Mechanism for Financing Infrastructural Development in Nigerian Power Sector

Abstract

Infrastructure is a major determinant of a country's economic growth and broad-based of the country’s economic stand. Infrastructure is a measuring index for judging a country's economic growth. The study is to gauge the awareness of Green Sukuk in Nigeria among stakeholders and investigates the use of Green Sukuk in the financing power sector in Nigeria. The study employed a survey questionnaire that uses Confirmatory Factor Analysis (CFA) under Structural Equation Modelling (SEM) to ascertain the relationship. Reliability and validity were also used to determine data consistency. The study checked Cronbach's alpha, composite reliability (CR), Average variance Extracted (AVE), and convergent discriminant validity for the accuracy of study variables. The study's findings have developed strategies and policy plans for access to electricity in Nigeria. The results of this study are positive regarding Awareness (AW), Poor Infrastructure (PI), Corruption and Political Disruption (CPO), and Poor Household Allocation (PBA) towards sustainable financing of the power sector in Nigeria. It shows that there is a meaningful and strong relationship. The study covers only electricity infrastructure and does not include the other infrastructural projects in the country. Future research may extend wider to increase the country's generalization.