EVOLUTION OF CARBON ACCOUNTING IN NIGERIA: A CRITICAL REVIEW
Abstract
Carbon accounting is the recognition of the non-financial and financial evaluation and monitoring of GHG on all levels of the value chain and the effects of these emissions on the carbon cycle of the environment. This study critically reviews the evolution of carbon accounting in Nigeria. The specific objectives include to Investigate the evolution; Assess the accounting methods and Analyze the challenges faced in carbon accounting practices in Nigeria. The study adopted descriptive research design. Extant works were reviewed and observations made includes amongst orders that there is weak institutional capacity in carbon accounting practices. Also, there is inadequate quality data that has made it difficult to establish accurate emission baseline. Moreso there is an identified technical capacity gap. The study therefore recommends that the federal government through its agencies should strengthen institutional frameworks by establishing a centralized national carbon accounting authority. Also, the government should improve in data collection and management and finally engage in building technical capacity by training government staff, academics etc.
Keywords:
Carbon Accounting, Carbon Emission, Environment, carbon dioxide and NigeriaDownloads
Published
DOI:
https://doi.org/10.5281/zenodo.15586367Issue
Section
How to Cite
License
Copyright (c) 2025 Odo, John Onyemaechi. Ph.D. FCA , Nwachukwu, Basilia Chiamaka. Ph.D., CNA
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Abolade, O., et al. (2020). Capacity needs assessment for climate change mitigation in Nigeria Climate and Development, 12(5), 437–445
Akinyele, S. T., & Oladipo, E. O. (2021). Institutional challenges to climate changemitigation in Nigeria. Environmental Management and Sustainable Development, 10(1), 93–108.
Boutthavong, S., Bouaphavong, D., & Hyakumura, K. (2014). Community Carbon Accounting Action Research in Lao PDR. Community-based forest biomass monitoring. Institute for Global Environmental Strategies.
Cortés, D., Traxler, A. A., & Greiling, D. (2023). Sustainability reporting in the
construction industry – Status quo and directions of future research. Heliyon, 9, e21682. https://doi.org/10.1016/j.heliyon.2023.e21682.
Crous, C. (2022). Sustainability Reporting by Collieries. In L. Marais et al. (Eds.), Coal
and Energy in South Africa: Considering a Just Transition (pp. 120-134). Edinburgh University Press.
Egbuna, I. E & Ike, A. W (2023) Analysis of the pros and cons of carbon accounting information disclosure by firms in Nigeria. Journal of Business, Management and Accounting Research 1(3) 237 – 251.
Egbunike, F. C. & Emudainohwo, O. B. (2017). The role of carbon accountant in corporate carbon management system: A holistic approach. Indonesian Journal of Sustainability Accounting and Management, 1(2), DOI: https://doi.org/10.28992/ijsam.v112.34
Ezenwafor, E. C. (2021). Carbon management accounting and performance: A study of consumer goods manufacturing firms in Nigeria. African Journal of Business and Economic Development, 1(8),1-12.
Galama, J. T. & Scholtens, B. (2024). A meta analysis of the relationship between
company’s greenhouse gas emissions and financial performance. Environmental Research Letter, http://doi.org/10.1088/1748 16. -9326 /abdf08
Graham, E. G, Erstabel, O. O & Dorpes, R (2005) Disclosure of carbon emission and attitude of stakeholders in assessing firms’ responsibilities. Business, Economy and Public Policy Review 3(4), 201 – 214.
Hartmann, F. G. H., Perego, P., & Young, A. (2013). Carbon accounting: Challenges for research in management control and performance measurement.
Hazaea S.A, Al-Matari E.M, Alosaimi M.H, Farhan N.H.S, Abubakar A & Zhu, J. (2022). Past, present, and future of carbon accounting: Insights from scholarly research. Front Energy Res. 10:958362. doi: 10.3389/fenrg.2022.958362
Iyabo, M. O ., Lawal, E. O ., Olayinka,I. M ., Ilishan, R. & Akinsola, V. S. (n.d). Carbon emission and economic growth in Nigeria. Hezekiah University journal of Management and Social Sciences, 7(1), 124-141 jclepro.2012.06.024
IPCC (Intergovernmental Panel on Climate Change). (2006). Guidelines for National Greenhouse Gas Inventories. Retrieved from https://www.ipcc nggip.iges.or.jp/public/2006gl/index.html
IPCC (Intergovernmental Panel on Climate Change). (2021). Guidelines for National Greenhouse Gas Inventories. Retrieved from https://www.ipcc-nggip.iges.or.jp/public/2006gl/index.html
Kyle, P. (2021). Cabon accounting, creating an inventory for and calculation of an organisation's scope 1, 2, and 3 greenhouse emissions
Lestari, R., Mukhzarudfa, A. & Kususmastuti, R. (2024). Factors affecting carbon emission disclosure and its impact on company financial performance (A study of energy sector companies listed on IDX in 2020 – 2022). Journal of Economics, Technology and Business, 3(6), 917 – 936.
Mildawati, T., Agustia, D., & Soewarno, N. (2018). The climate change strategy-the company’s performance: Examining the mediating role of the disclosure of climate change in Indonesia. International Journal of Scientific and Research Publications, 8(1), 451-460.
Miklautsch, P., & Woschank, M. (2022). A framework of measures to mitigate greenhouse gas emissions in freight transport: Systematic literature review from a Manufacturer’s perspective. Journal of Cleaner https://doi.org/10.1016/j.jclepro.2022.132883.
Muhammad, A., Abdul, Q. K., Hussin,B, A ., & Muhammad, E. Q. (2016). The impact of CO2 emissions on economic growth: Evidence from selected higher CO2 emissions economies. Eviron sci. pollut. Res. Int. doi: 10.1007/s11356-015-5817-4.
Myers, O. B & Majluf, N. S (1984) Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial and Economics 13(2), 187 221.
National climate change policy for 2012-2023 (2021). Federal Ministry of Environment,Department of climate change
Nurudeen, A. B & Salawu, A. M (2023) Carbon accounting voluntary information disclosure and performance of firms in Nigeria: An empirical Study. Journal of Management Social and Entrepreneurship Studies 1(3) 76 – 89.
Ojeaburu, F. (2021. Carbon emission accounting and economic growth in Nigeria.
Persefoni Team (2022). What is carbon accounting
Robert, N. B & Wagner, A. A (2017) Carbon emission performance reporting and stakeholders’ expectation: The need to evaluate the reporting system. Journal of Sustainable Management and Development 1(6) 258 – 273.
.Schaltegger, S ., & Csutora, M. (2012). Carbon accounting for sustainability and management.Status quo and challenges. J. Clean. Prod. 36, 1-16. doi: 10.1016/j.SSRN J. 49 (4), 1-41. doi:10.2139/ssrn.2347407
Siddique, M. A., Akhtaruzzaman, M., Rashid, A. & Hammami, H. (2021). Carbon disclosure, carbon performance and financial performance: International Evidence, International Review of Financial Analysis, 75, http://doi.org/110.1016/j.irfa.2021.1017 34
Spencer, N. P. & Weird, C. S (2014) Greenhouse gas emission reporting: The relevance of the practice in global climate change and sustainability. Journal of Policy Development and Management Studies 3(3), 146 – 157.
Tang, Q. (2017). Towards a framework of carbon accounting and its role in corporate carbon management systems: A holistic approach.
United Nations Statistical Division. (n.d) Carbon Accounting, (level 0,1, and 2). System of environmental-Economic accounting. Project: Advancing the SEEA experimental ecosystem accounting.
WRI (World Resources Institute) & WBCSD (World Business Council for Sustainable Development). (2004). The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard. Retrieved from https://ghgprotocol.org/corporate-standard
