Impact Assessment of Carbon Management Accounting on Performance of Listed Manufacturing Firms in Nigeria

Olufemi Philip Ogunrinde, Folukemi Catherine Fabiyi and Gbenga Olanrewaju Akinboboye
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Olufemi Philip Ogunrinde: Department of Accounting, Faculty of Management Sciences, Federal University Oye-Ekiti, Ekiti State, Nigeria.
Folukemi Catherine Fabiyi: Department of Finance, Institute of Part-time Studies, Federal University Oye-Ekiti, Ekiti State, Nigeria.
Gbenga Olanrewaju Akinboboye: Department of Accounting, Afe Babalola University, Ijan Road, Ado Ekiti, Ekiti Sate, Nigeria.

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Abstract: The present study explores how Carbon Management Accounting (CMA) is associated with the financial performance of the listed manufacturing firms within the Nigerian context to investigate the ever-increasing need of sustainable business processes in the wake of financial risks posed by the climate crisis. The study is also impelled by the necessity to explain how the practice of CMA can be used as a strategic measure in ensuring environmental responsibility as well as economic effectiveness in the manufacturing industry of Nigeria. A purposive sample of 10 manufacturing companies listed publicly was selected and the secondary data was extracted during the five-year period (2019-2023). The research witnessed the use of descriptive statistics and regression analysis to study the correlation between particular practices of CMA and the performance of the firm. The findings show that intensities of carbon emission accounting, renewable energy adoption, and implementation of carbon pricing substantially have a positive impact on financial performance. The greatest positive impact was delivered by the implementation of carbon pricing so this approach can be regarded as a strategic lever that may help to improve the profitability rate and guarantee a sustainable environment. There are three contributions to the study namely; the study offers an empirical study regarding the role played by CMA in enhancing performance of firms in a developing economy setting; suggests a composite CMA model relevant to the manufacturing companies of Nigeria; and provides useful policy guidelines to be implemented by the regulating authorities such as implementing the carbon disclosure standards, encouraging renewable energy investment and incorporation of carbon pricing into the company planning. Equating the financial goals with the environment stewardship, CMA can become a two-fold method to maintain economic strength and to go eco-friendly. The study recommends that proactive involvement of policymakers, corporate boards, and environmental regulators would be warranted to mainstream CMA practices in Nigeria in realising sustainable industrial development.

Date: 2025-07-26
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Published in Asian Journal of Economics, Finance and Management , 2025, 7 (1), pp.661-672

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