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Green Sukuk: Investigating the Application of Green Sukuk for Accelerated Food Sufficiency in Nigeria
Subject area: Management and Commerce · Area of research: Green Sukuk and Sustainable Finance
DOI: https://doi.org/10.64388/IREV9I8-1714210
Abstract
This research has explored the efficiency of green sukuk financing in enhancing food sufficiency in Nigeria by determining its usefulness in gathering sustainable marketing capital to finance agricultural production, agro processing and food linkage chain creation. In a completely quantitative study, secondary data of sukuk issuances, agricultural capital formation, conventional credit, macroeconomic variables and food sufficiency indicators were studied using studies of autoregressive distributed lag modelling, error correction mechanisms and Granger causality. The findings showed that Green Sukuk financing had statistically significant positive impact on food sufficiency as compared to conventional agricultural credit. In short run, food sufficiency was responsive to Green Sukuk financing in the short term and the error correction term showed the responsiveness towards the equilibrium in the long run. The findings of Granger causality test confirmed that there was a unidirectional association between financing of Green Sukuk and food sufficiency where the engineering of food system changes was initiated by Green Sukuk financing, as opposed to food system changes that might have occurred before. The results highlight the potential of Green Sukuk to offer patient, sustainability focused capital, which is climatic resilient agriculture, agro processing and healthy food supply chains. Some of the policy implications would be the encouragement of specific Green Sukuk issue, enhancement of regulatory frameworks, and facilitation of the involvement of the private sector in financing sustainable agriculture.
Keywords
Green Sukuk, Food Sufficiency, Sustainable Finance, Nigeria, Agricultural Development
References
[1] Aassouli, D., Asutay, M., Mohieldin, M., & Nwokike, T. C. (2018). Green Sukuk, Energy Poverty, and Climate Change.
[2] Abdulsalam, U. Y. (2025). Sustainability of sukuk as financing instrument for bridging infrastructural deficits in Nigeria.
[3] Abdurraheem, A., & Naim, A. M. (2018). Sub-Saharan Africa’s infrastructure funding gap: Potentials from sukuk financing.
[4] Adeagbo, F. (2021). Islamic finance and sukuk in Nigeria: A paradigm shift in infrastructure financing.
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[7] Ashemi, B. A., Ibrahim, M. L., & Amos, C. (2025). Role of Muzara’ah Sukuk in addressing food crisis in Nigeria.
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[9] Delle Foglie, A., & Keshminder, J. S. (2024). Challenges and opportunities of SRI sukuk toward financial system sustainability.
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How to cite this paper
@article{1714210,
author = {Jubril Abdulahi Salaudeen Ph.D},
title = {Green Sukuk: Investigating the Application of Green Sukuk for Accelerated Food Sufficiency in Nigeria},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {9},
number = {8},
pages = {363-371},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1714210.pdf},
abstract = {This research has explored the efficiency of green sukuk financing in enhancing food sufficiency in Nigeria by determining its usefulness in gathering sustainable marketing capital to finance agricultural production, agro processing and food linkage chain creation. In a completely quantitative study, secondary data of sukuk issuances, agricultural capital formation, conventional credit, macroeconomic variables and food sufficiency indicators were studied using studies of autoregressive distributed lag modelling, error correction mechanisms and Granger causality. The findings showed that Green Sukuk financing had statistically significant positive impact on food sufficiency as compared to conventional agricultural credit. In short run, food sufficiency was responsive to Green Sukuk financing in the short term and the error correction term showed the responsiveness towards the equilibrium in the long run. The findings of Granger causality test confirmed that there was a unidirectional association between financing of Green Sukuk and food sufficiency where the engineering of food system changes was initiated by Green Sukuk financing, as opposed to food system changes that might have occurred before. The results highlight the potential of Green Sukuk to offer patient, sustainability focused capital, which is climatic resilient agriculture, agro processing and healthy food supply chains. Some of the policy implications would be the encouragement of specific Green Sukuk issue, enhancement of regulatory frameworks, and facilitation of the involvement of the private sector in financing sustainable agriculture.},
keywords = {Green Sukuk, Food Sufficiency, Sustainable Finance, Nigeria, Agricultural Development},
month = {February},
doi = {https://doi.org/10.64388/IREV9I8-1714210}
}