Since the 1970s, the role of trade liberalization and foreign direct investment in promoting environmental sustainability has been a hot topic in academics. While some research supports the Porter hypothesis, others support the pollution-haven hypothesis. Accordingly, this study aims to determine whether the pollution haven hypothesis holds by examining how trade openness and foreign direct investment affect Nigeria’s environmental sustainability for the period of 1981 to 2021. By deploying the dynamic ordinary least square (DOLS) estimation technique, the study outcomes indicate that trade openness and foreign direct investment have a negative and significant long-term effect on Nigeria’s greenhouse gas emissions. Therefore, the results of this study support the Potter hypothesis, which holds that emerging nations become centers of advanced and cleaner technology as a result of trade liberalization and foreign direct investment. As a result, the study suggests that the Nigerian government should support the creation of compressed natural gas (CNG) stations and the switch to CNG-powered vehicles. The Nigerian government can also promote investment in the green energy industry by offering tax holidays and other benefits to companies in this field. Furthermore, there should be a widespread public education campaign on the threat posed by global warming and the necessity of planting trees to mitigate the effects of climate change and discourage tree-cutting.

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