Mandatory environmental sustainability in Nigeria: A comparative study between environmentally sensitive and less environmentally sensitive sectors
Mohammed Auwal Babangida and Nasiru Abdulsalam Kao’je
This study compares and contrasts the quality and quality of environmental sustainability between Nigerian oil and gas and industrial goods companies. The study further investigated the economic consequences of environmental sustainability on performance of entities quoted in the Nigerian Stock Exchange. The study covers a period of 10 years, spanning from 2011 to 2020. An independent T-test was introduced to gauge the level of compliance and enforcement. The results reveal variations in the compliance level with oil and gas companies scoring the highest percentage. The findings also reveal that only 53% out of the total samples comply with NSCD, 33% comply with OLPD, 45% comply with SEFD, 42% comply with SGCD, only 23% of that number comply with CMDA, 29% comply with AQCD, 48% comply with SWCD, and only 36% out of the total number comply with DDCD. Drawing on institutional theory, the empirical results reveals a significant positive relationship between environmental sustainability and firms' financial performance. The study, recommends that government should introduce environmental tax as an incentive and strategy for motivating firms to disclose and comply with the requirements of sustainable development goals.
Mohammed Auwal Babangida, Nasiru Abdulsalam Kao’je. Mandatory environmental sustainability in Nigeria: A comparative study between environmentally sensitive and less environmentally sensitive sectors. Int J Finance Manage Econ 2023;6(1):148-158. DOI: 10.33545/26179210.2023.v6.i1.186