Carbon Accounting Practices and Regulatory Compliance of Manufacturing Companies in Nigeria

Eno Gregory Ukpong PhD

doi:10.56201/jafm.vol.11.no12.2025.pg32.51

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Carbon Accounting Practices and Regulatory Compliance of Manufacturing Companies in Nigeria

Eno Gregory Ukpong PhD

Abstract

This study examines the effect of carbon accounting practices on regulatory compliance among ten manufacturing companies listed on the Nigerian Exchange between 2015 and 2024. Specifically, it investigates how carbon emission measurement practices (CEMP), carbon disclosure and reporting practices (CDRP), carbon reduction strategies (CRS), and internal carbon management systems (ICMS) influence regulatory compliance (RC), while controlling for firm size (FS). Secondary data were collected from annual reports, sustainability reports, and regulatory filings. Data analysis was performed using descriptive statistics, correlation analysis, and panel regression techniques. The findings reveal that all four dimensions of carbon accounting practices positively and significantly influence regulatory compliance. Carbon disclosure and reporting practices had the largest effect (? = 7.1, p = 0.001), followed by internal carbon management systems (? = 6.5, p = 0.001), carbon emission measurement practices (? = 6.2, p = 0.001), and carbon reduction strategies (? = 5.5, p = 0.002). Firm size also positively influenced regulatory compliance (? = 0.008, p = 0.012), indicating that larger firms are better able to implement robust carbon accounting practices. The regression model explained a substantial portion of the variance in compliance (R² = 0.78), demonstrating the critical role of carbon accounting practices in enhancing adherence to environmental regulations. The study concludes that comprehensive carbon accounting practices are key determinants of regulatory compliance in Nigerian manufacturing firms. It recommends that companies adopt systematic carbon measurement protocols, enhance transparency through regular reporting, implement effective reduction strategies, and establish formal internal carbon management systems. Policymakers and regulators are encouraged to provide clear frameworks and incentives to promote compliance, while

Keywords

Carbon Accounting PracticesRegulatory ComplianceManufacturing

References

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Carbon Accounting Practices and Regulatory Compliance of Manufacturing Companies in Nigeria

Abstract

Keywords

References

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