Environmental, Social, and Governance Procurement Practices and Performance Outcomes in Electricity Distribution Utilities: Evidence from Nigeria Using PLS-SEM

Reliable electricity distribution remains a critical challenge in many developing economies, where persistent operational inefficiencies, weak governance structures, and sustainability concerns undermine service delivery and financial performance. In Nigeria, electricity distribution companies (DisCos) operate in a highly regulated and capital-intensive environment, making procurement practices a strategic lever for improving organisational outcomes. Drawing on stakeholder theory, institutional theory, and the resource-based view, this study examines the effects of environmental, social, and governance (ESG)–oriented procurement practices on organisational performance in Nigeria’s electricity distribution utilities. Adopting a cross-sectional research design, data were collected through a structured questionnaire administered via Google Forms to 250 employees across thirteen licensed DisCos, targeting staff involved in procurement, operations, finance, internal audit, and regulatory compliance. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that environmental (β = 0.21, p < 0.01), social (β = 0.29, p < 0.001), and governance (β = 0.41, p < 0.001) procurement practices each exert positive and statistically significant effects on organisational performance, with governance procurement emerging as the strongest predictor. The model explains a substantial proportion of the variance in organisational performance (R² = 0.62) and demonstrates strong predictive relevance (Q² = 0.41). By providing sector-specific empirical evidence from a developing-country electricity market, this study extends the sustainable procurement literature and highlights the strategic importance of embedding ESG principles into procurement systems. The findings offer actionable insights for utility managers and policymakers seeking to enhance efficiency, service reliability, and stakeholder trust through procurement reform.