This paper presents an empirical review of the relationship between capital structure and sustainability reporting in emerging markets, with a particular focus on Nigeria. Drawing from global, regional, and local studies, the review highlights the complex and context-dependent nature of this relationship, influenced by firm-specific factors such as ownership structure, industry type, profitability, and governance mechanisms. It also considers broader environmental and institutional conditions, including regulatory frameworks, market volatility, and disclosure standards. While evidence from developed markets often shows a positive correlation between financial leverage and sustainability disclosures largely driven by investor expectations and transparency obligations findings from Nigeria are more fragmented due to inconsistent ESG practices, methodological limitations, and a focus on specific sectors like manufacturing. Nigerian firms tend to adopt sustainability reporting reactively, often tied to profitability, rather than as part of a long-term strategic framework. The study identifies key limitations in the existing literature, including over-reliance on cross sectional data, lack of causal analysis, and inconsistent measurement approaches. Based on these insights, the paper recommends a multi stakeholder strategy involving policymakers, corporate managers, and researchers to strengthen ESG reporting, align capital structure with sustainable development goals, and foster more robust, transparent corporate practices across diverse sectors. This review contributes to the growing discourse on sustainable finance in emerging economies and provides actionable guidance for improving the quality and relevance of sustainability disclosures in Nigeria’s corporate landscape.