Analysis of the Regulatory Mechanism for Corporate Climate Governance in Nigeria

Abstract

Nigeria as a signatory to the Paris Agreement 2015 is obliged to reduce 
greenhouse gas emissions and pursue climate-resilient development. To achieve these goals, it would be necessary to rely not only on state-led interventions but also on the active participation of corporate actors, particularly in high-emission sectors such as oil and gas, manufacturing, and energy. This paper analyzed the regulatory mechanisms that govern corporate climate governance in Nigeria, focused on the legal instruments that seek to align corporate practices with national and international climate commitments. The paper analyzed the effectiveness of these regulatory mechanisms such as nationally determined contributions (NDCs), carbon budgeting, environmental disclosure and reporting obligations in promoting corporate climate accountability and environmental compliance. In doing this, it adopted the doctrinal methodology, supported by qualitative analysis of statutes, policy documents, international agreements, and judicial decisions. The paper found that while Nigeria has made significant legislative strides, regulatory enforcement remains weak due to institutional overlap, lack of technical capacity, and poor corporate transparency. Furthermore, legal obligations are often undercut by discretionary enforcement and limited stakeholder engagement. The paper recommended strengthening institutional coordination, mandating corporate climate disclosures, introducing sector-specific emission standards, and enhancing civil society participation in environmental monitoring. Ultimately, the paper supported a robust and coherent regulatory approach to mainstream corporate responsibility into Nigeria’s climate governance framework, to ensure that businesses not only comply with the law but actively contribute to sustainable development and the realization of Nigeria’s international climate commitments.