Corporate environmental accountability in Nigeria : an example of regulatory failure and regulatory capture

Noah, AO; Adhikari, P; Ogundele, BO; Yazdifar, H

Abstract

Purpose: The purpose of this study is to investigate how state regulations become ineffective
in holding corporations accountable for environmental degradation in an emerging economy
context, with a specific focus on oil and gas and cement industry in Nigeria
Design Methodology: The study draws on capture theory to bring out the factors that have
rendered redundant the state intervention to make corporations accountable for their
environmental activities. The research setting is the oil and gas and cement industry in Nigeria.
Data for the study are derived from both documentary analysis and semi-structured interviews
and analysed using a thematic technique.
Findings: The findings of the paper demonstrate a regulatory failure to hold corporations to
account for their environmental activities. A lack of political will, outdated regulations and the
manipulation of the regulators, all have played a part in preventing corporations from being
accountable for their activities. In addition, the widespread elite corruption in the country has
provided corporations with leeway to manipulate their environmental accountability practices.
The study emphasises the need for continuous review of the regulations and efforts to reduce
corruption in order to promote corporations' environmental accountability in Nigeria.
Originality value: The study adds to the debate on corporate environmental accountability
practices engendering insights from the Nigerian oil and gas and cement industry. The paper
demonstrates how companies in emerging economies can capture state regulations and how
rendering environmental accountability becomes more of a rhetoric than a reality with little
impacts on the welfare of people and society.

Citation

Noah, A., Adhikari, P., Ogundele, B., & Yazdifar, H. (2021). Corporate environmental accountability in Nigeria : an example of regulatory failure and regulatory capture. Journal of Accounting in Emerging Economies, 11(1), 70-93. https://doi.org/10.1108/JAEE-02-2019-0038

• Journal Article Type: Article
• Acceptance Date: Aug 3, 2020
• Online Publication Date: Sep 11, 2020
• Publication Date: Jan 26, 2021
• Deposit Date: Aug 13, 2020
• Publicly Available Date: Oct 1, 2020
• Journal: Journal of Accounting in Emerging Economies
• Print ISSN: 2042-1168
• Publisher: Emerald
• Volume: 11
• Issue: 1
• Pages: 70-93
• DOI: https://doi.org/10.1108/JAEE-02-2019-0038
• Publisher URL: https://doi.org/10.1108/JAEE-02-2019-0038
• Related Public URLs: http://www.emeraldinsight.com/loi/jaee