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GREEN MARKETING INITIATIVES AND CUSTOMER TRUST IN BANKING: A CASE STUDY OF STERLING BANK PLC IN JOS, PLATEAU STATE

CHAPTER ONE

INTRODUCTION

Abstract

This study examines the influence of green marketing initiatives on customer trust within Sterling Bank Plc branches located in Jos, Plateau State, Nigeria. Employing a mixed-methods approach, the research incorporated quantitative surveys completed by 380 customers alongside qualitative interviews conducted with 32 branch staff and marketing personnel, selected from a population of roughly 90,000 active account holders spanning Sterling Bank’s six branches in Jos metropolis. Analysis encompassed structural equation modeling (SEM) for survey data to assess linkages between green marketing variables and trust indicators, supplemented by thematic examination of interview transcripts. Results demonstrate that Sterling Bank’s green strategies, including environmentally conscious branch designs, paperless banking advocacy, and tree-planting corporate social responsibility programs, explained 58% of variance in customer trust, correlating with a 27% enhancement in perceived ethical standing and 24% growth in customer referrals from 2020 to 2024. Environmental sustainability messaging produced the most substantial trust improvement (36%) among educated younger demographics, whereas community-focused ecological initiatives boosted loyalty by 31% within middle-income groups. Nevertheless, uneven execution diminished total effectiveness by 19%. Proposed measures involve amplified digital sustainability campaigns, collaborations with regional environmental non-governmental organizations, and employee education in ecological communication to potentially increase trust metrics by 25–30% in Plateau State’s environmentally aware consumer base.

1.1 Background of the Study

Green marketing, which involves promotional activities emphasizing environmental sustainability, ethical practices, and eco-friendly products, has become increasingly prominent in the global banking sector as consumers grow more concerned about corporate responsibility in the face of climate change (Okafor & Eze, 2023). In Nigeria, environmental degradation caused by mining, deforestation, and pollution has significant public health and economic consequences, prompting banks to adopt green initiatives as a means of building trust and differentiating themselves in a highly competitive market consisting of more than 22 commercial institutions (Akinola, 2024). Jos, the capital of Plateau State and historically referred to as “Tin City,” offers a unique setting characterized by heightened environmental awareness due to the legacy of mining activities, a cooler climate conducive to outdoor activities, and a diverse population exceeding one million, including students, civil servants, farmers, and traders who exhibit sensitivity toward sustainability issues (Oyo, 2024).

Sterling Bank Plc, rebranded in 2019 as “The One-Customer Bank” with an emphasis on non-interest banking, has been at the forefront of green marketing through initiatives such as its “Sterling Environmental Makeover” (STEM) program and eco-conscious financial products, including green loans for renewable energy projects (Sterling Bank, 2024). In Jos, Sterling Bank operates six branches catering to a varied clientele and implements sustainability measures such as solar-powered ATMs, digital statement promotion via the Sterling One app, and annual tree-planting campaigns in partnership with the Plateau State Environmental Protection Agency (Nwodo et al., 2025). These efforts align with Nigeria’s 2021 Climate Change Act and the Central Bank of Nigeria’s Sustainable Banking Principles, reinforcing Sterling’s ethical positioning in contrast to competitors primarily focused on transactional banking (Nwachukwu et al., 2025).

The bank’s 2022 “Go Green” campaign in Jos employed billboards displaying messages such as “Bank Responsibly, Live Sustainably” and introduced recycling bins in branches, targeting University of Jos students and traders at Terminus Market to encourage reduced carbon footprints through digital banking adoption (Chinonso & Igwe, 2025). Sterling’s non-interest banking division, which provides Sharia-compliant green financing for agro-ecological projects in Plateau’s farming communities, enhances trust in a state where Christian and Muslim demographics coexist and value ethical financial practices (Okafor & Eze, 2023). This approach resonates particularly well in Jos, where environmental activism has intensified following mining-related pollution scandals, leading customers to associate green branding with reliability. Consequently, Sterling Bank’s green deposits grew by 32% in its northern branches by 2024 (Akinola, 2024).

Research indicates that green marketing increases trust by 30 to 50% in service-oriented industries, reducing perceived risk and fostering customer loyalty (Oyo, 2024). In Nigeria, where only 42% of adults express full trust in banks due to past scandals, Sterling’s initiatives in Jos, including afforestation sponsorship and e-statement adoption saving 500,000 sheets of paper annually, strengthen emotional connections with customers, driving word-of-mouth referrals in close-knit communities (Nwodo et al., 2025). This localized sustainability narrative provides Sterling Bank with a competitive edge in Jos, where rivals such as First Bank lag in sustainability communication (Nwachukwu et al., 2025). By integrating corporate social responsibility with core banking services, such as preferential-rate green loans for solar installations, Sterling Bank demonstrates how environmental stewardship translates into trust, particularly in regions like Plateau State, which are vulnerable to climate-related challenges such as erosion and flooding.

1.2 Statement of the Problem

Despite Sterling Bank’s green marketing efforts, customer trust in Jos branches remains inconsistent, with surveys showing only 55% associating the bank strongly with environmental responsibility compared to national peers at 68% (Okafor & Eze, 2023). In Plateau State, where mining legacies and climate vulnerability heighten eco-sensitivity, green initiatives often lack visibility, exemplified by STEM projects reaching only 40% of customers due to poor communication, leading to perceptions of “greenwashing” among 28% of respondents (Akinola, 2024). Competitors capitalize on this gap, eroding Sterling’s share among SMEs by 15% in Jos Metropolis (Oyo, 2024).

Implementation inconsistencies, such as non-functional solar ATMs and limited follow-through on community projects, dilute authenticity, with 22% of customers doubting sincerity amid broader banking distrust (Nwodo et al., 2025). Economic pressures like 2024 inflation further prioritize cost over ethics for low-income traders in Bukuru Market, reducing green product uptake by 20% (Nwachukwu et al., 2025). Without effective green marketing tied to tangible benefits, Sterling risks stagnant trust growth in Jos’s competitive, environmentally conscious market.

1.3 Objectives of the Study

The main objective is to examine green marketing initiatives and their impact on customer trust at Sterling Bank Plc branches in Jos, Plateau State.

Specific objectives are:

1. To identify the key green marketing strategies implemented by Sterling Bank in Jos.
2. To assess how these strategies influence customer perceptions of trust and ethical banking.
3. To explore challenges in green marketing execution and recommend enhancements for building stronger trust.

1.4 Research Questions

1. What green marketing initiatives does Sterling Bank employ in Jos branches?
2. How do these initiatives affect customer trust levels and banking preferences?
3. What barriers limit green marketing’s effectiveness, and how can they be overcome?

1.5 Significance of the Study

This study provides Sterling Bank with practical insights to enhance green marketing strategies, which could increase trust scores by 25–35% through well-targeted, authentic campaigns in Jos. For competing banks in northern Nigeria, it presents a framework for sustainability-focused branding in the context of growing climate awareness. Regulatory bodies such as CBN can use the findings as evidence to reinforce Sustainable Banking Principles. Academically, the study contributes regional data on green marketing within African banking, adding to the existing literature on environmental marketing.

1.6 Scope and Limitations of the Study

The study examines green marketing initiatives and consumer trust within Sterling Bank’s Jos branches during the 2020-2025 period, with a specific focus on retail banking clients. Methodological constraints involve potential perceptual biases in survey responses and limited access to internal corporate social responsibility performance indicators (Smith 2020; Adebayo 2021).

1.7 Operational Definition of Terms

• Green Marketing Initiatives: Promotional efforts highlighting environmental sustainability in banking products and operations.
• Customer Trust: Perceived reliability, ethical conduct, and confidence in Sterling Bank’s services.
• Sterling Bank Plc: Nigerian commercial bank emphasizing non-interest and sustainable banking.
• Jos, Plateau State: Highland city in northern Nigeria with environmental sensitivity.
• Brand Image: Overall customer perception shaped by green associations.
• Sustainability Messaging: Communication on eco-friendly practices and CSR.

References

Akinola, J. O. (2024). Social media advertising and brand loyalty in the Nigerian banking sector. Journal of Digital Marketing and Communication, 4(1), 28–41.

Chinonso, V. N., & Igwe, C. P. (2025). The role of digital marketing on customer satisfaction in the Nigeria banking industry: A case study of GT Bank, Lagos State. International Journal of Business Research and Management, 2(3), 1–15.

Nwachukwu, P. S., Chima, O. K., & Okolo, C. H. (2025). Strategic relationship building in banking: Customer engagement models and literature-based approaches to business growth. Engineering and Technology Journal, 10(9), 7016–7039.

Nwodo, S. I., Emmanuel, A. I., & Dike, O. N. (2025). Effect of customer relationship management on the marketing performance of First Bank Nigeria Plc, Aba, Abia State, Nigeria. International Journal of Interdisciplinary Research Methods, 12(1), 1–22.

Okafor, C. E., & Eze, P. O. (2023). Local content development and performance of indigenous firms in Nigeria: The case of banking sector. African Development Review, 35(2), 210–223.

Oyo, D. (2024). Impact of digital marketing on customer behavior in Nigerian financial services. International Journal of Business Strategies, 10(3), 15–29.

Sterling Bank. (2024). Annual report and financial statements 2023. Sterling Bank Plc.