The Sustainability Squeeze: Why Survival Outpacing Green Goals in Nigeria’s SME Sector

For many Nigerian entrepreneurs, “going green” is a noble goal that feels like a distant luxury. New research in the World Review of Entrepreneurship, Management and Sustainable Development reveals a stark reality: while awareness of environmental sustainability is growing, the structural “survival mode” of the Nigerian economy is actively stymieing action.

The Conflict: Cash Flow vs. Conservation

The study, which analyzed 310 entrepreneurs across the manufacturing, sales, and food service sectors, found that immediate financial pressures almost always override long-term environmental planning. When a business is fighting to cover basic payroll amidst high inflation and currency volatility, investing in solar power or biodegradable packaging becomes a secondary priority.

Four Pillars of Resistance

The research identifies four systemic barriers that make sustainable entrepreneurship particularly difficult for Nigeria’s MSMEs (Micro, Small, and Medium Enterprises):

1. Macroeconomic Instability: Fluctuating exchange rates and high inflation make the cost of importing green technologies (like efficient machinery or clean energy components) unpredictable and often prohibitive.

2. The Finance Gap: Affordable, long-term credit is scarce. Without financial buffers, small businesses cannot afford the “upfront shock” of transitioning to resource-efficient processes.

3. Fragile Infrastructure: Unreliable public services—particularly power and transport—force businesses to spend their “green budgets” on immediate workarounds, such as diesel generators.

4. Inconsistent Policy Support: While there is high-level talk of a “Green Economy,” smaller businesses report a lack of tangible regulatory incentives or tax waivers to reward sustainable practices.

Scaling the “Green Gap”

SMEs with fewer than 250 employees are the backbone of the Nigerian economy. The research suggests that if Nigeria (and other emerging economies) is to meet global climate goals, sustainability must be democratized. This requires moving away from niche marketing and toward integrated policy instruments.

The Global Implication

Nigeria’s struggle is a mirror for much of the developing world. The research concludes that unless financial systems and educational initiatives are aligned with sustainability objectives, emerging markets risk missing out on the massive social and economic benefits of the global “green transition.”

Comparison: Conventional vs. Sustainable Growth