Industry Characteristics: Sustainability and Profitability in the Financial Service Sector in Nigeria

The study examines the industry characteristics (environmental sustainability) and profitability in 
the financial service sector in Nigeria. The study aimed at examining the effect of sustainability 
on profitability in the service sector firms in the Nigeria Exchange Group (NXG). The study 
explored ex post facto research design. A population of 44 registered firms and a sample size of 
29 with the use of purposive sampling technique was used. The study found that Sustainability has 
a positive and insignificant effect on Net Profit Margin (NPM) in the financial service sector in 
Nigeria. The study concluded that the positive insignificant effect of sustainability on net profit 
margin result implies that while using these variables might be important for the overall business 
strategy, they do not directly contribute to profitability in a statistically meaningful way within the 
financial service sector in Nigeria. The study recommended that firms should gradually adopt 
sustainability strategies such as green financing and environmental impact, aligning with global 
trends and investor expectations.