CIRCULAR ECONOMIC PRACTICES AND SUSTAINABILITY OF RENEWABLE ENERGY ADOPTION IN ABUJA

Abstract

Abstract Nigeria continues to face persistent energy deficits, with Abuja, its rapidly urbanizing capital struggling to provide stable electricity to households and industries despite growing investments in renewable energy technologies. While renewable energy adoption offers a pathway to sustainability, its long-term viability is threatened by high costs, technological dependence and weak waste management systems. This challenge necessitates the integration of circular economy practices that can extend product lifecycles, reduce waste and enhance environmental and economic outcomes. Guided by the Natural Resource-Based View (NRBV) theory, this study investigates the influence of five proxies of circular economy practices such as recycling, reuse and refurbishment, resource efficiency, waste-to-energy integration and reverse logistics on the sustainability of renewable energy adoption in Abuja. Using a cross sectional survey research design with quantitative approach, data were collected from 220 renewable energy startups through structured questionnaires. Psychometric validation confirmed the reliability of the instrument and the data were analyzed using correlation and multiple regression at a 0.05 significance level. The results reveal that recycling (β = 0.28, p < 0.001), resource efficiency (β = 0.35, p < 0.001), and reverse logistics (β = 0.16, p = 0.018) significantly enhance sustainability, while reuse/refurbishment and waste-to-energy integration show no significant effects. These findings highlight the uneven embedding of circular practices in Abuja’s renewable energy ecosystem, with efficiency-driven strategies proving most effective. The study recommends scaling impactful circular practices while strengthening weaker ones through policy incentives, infrastructure investment and firm-level innovation which is critical to advancing the sustainability of renewable energy adoption in Abuja and similar contexts in the Global South.