An assessment of taxation and ESG disclosure in Nigeria: A review of literature and research agenda
DOI:
https://doi.org/10.33003/fujafr-2026.v4i1.270.431-442Keywords:
Environmental, Governance, Social, TaxationAbstract
Purpose: This study conceptually looked at the link between taxation and ESG disclosures in Nigeria, as it places strong emphasis on applying logic and interpreting current knowledge.
Methodology: In order to ensure that the conceptual discourse is based on accepted knowledge, the study also relied on secondary sources, including peer-reviewed journal articles, books, scholarly publications, government and institutional reports, and reputable online databases that examined the interrelationship of taxation and ESG disclosures in Nigeria.
Results and Conclusion: The study found that Nigeria has stepped up her efforts to enact laws and regulations pertaining to environmentally related taxes having been a signatory to several United Nations (UN) SDGs and other UN’s Protocols on the Environment and Climate Change initiatives. However, upon these feat made, the study observed that Nigeria still continues to face challenges such as lack of a comprehensive carbon tax strategy, tax enforcement and compliance monitoring.
Implication of Findings: In view of the findings made, the study recommended that Nigeria should adopt a comprehensive carbon and environmental tax system that levies a legally required tax on companies for each cubic meter of CO2 emissions instead of only their earnings. The environmental taxes now referred to as Hydrocarbon Tax in the new tax reform act should be designed to capture other industries apart from the upstream petroleum operations in relation to crude oil and enforce compliance from companies in environmental degradation.
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