ADOPTION OF GREENHOUSE GAS ACCOUNTING AMONG MSMES IN PORT HARCOURT: CURRENT STATUS, DRIVERS, AND BARRIERS

Abstract

This study provides a comprehensive assessment of the adoption of Greenhouse Gas (GHG) accounting among Micro, Small and Medium-sized Enterprises (MSMEs) in Port Harcourt, Nigeria. It aims to establish a baseline understanding of the current adoption status while systematically identifying and analysing the primary barriers and drivers that shape MSME engagement with environmental management practices in an under-researched, emerging economy context.

Methodology: The research employed a descriptive, cross-sectional survey design. Data were collected from a sample of 139 MSME owners and managers in the Port Harcourt metropolis using a structured, pre-tested questionnaire. A multi-stage sampling technique was utilized to ensure a representative sample across key industrial sectors. Data analysis was conducted using descriptive statistics, including frequencies, means, and standard deviations, to profile the sample and quantify adoption levels, as well as the perceived significance of various barriers and drivers.

Findings: The study reveals that the adoption of formal GHG accounting among Port Harcourt MSMEs is in a state of profound infancy, with 92.1% of firms at a 'Nascent' stage and only 2.9% having ever formally calculated their carbon footprint. A significant knowledge gap exists, with extremely low familiarity with core concepts like "GHG Accounting" and "Scope 1, 2, and 3 Emissions." The most significant barriers to adoption were found to be resource-based, including a lack of funds for investment (Mean=4.45), a focus on immediate business priorities (Mean=4.38), and a lack of in-house technical expertise (Mean=4.15). Conversely, the most powerful drivers were internal and commercial, led by the potential for operational cost savings (Mean=4.51) and the opportunity to improve brand image and reputation (Mean=4.25). External pressures from government or customers were perceived as weak motivators.

Conclusion: This study provides detailed empirical evidence on the state of carbon accounting within the MSME sector of a major African industrial hub. It moves beyond generic descriptions of barriers by quantifying their relative importance in a specific context. The findings offer critical, evidence-based insights for policymakers, industry associations, and development partners, suggesting that future interventions must be framed around the pragmatic business case for sustainability—emphasizing cost savings and competitive advantage—rather than relying on compliance or moral suasion