CARBON ACCOUNTING PRACTICES AND ENERGY TRANSITION READNESS OF OIL AND GAS COMPANIES IN NIGERIA

Abstract

This study investigates carbon accounting practices and energy transition readiness among oil and gas companies in Nigeria. In this regard, it attempts to assess the level of carbon accounting adoption, challenges affecting implementation, the readiness for the global energy transition, and evidence-based recommendations for improved reporting and low-carbon investment strategies. The methodology applies a qualitative research design, relying only on secondary data from academic literature, industry reports, company sustainability disclosures, and credible regulatory sources like NEITI. Thematic content analysis was employed to identify trends in carbon accounting adoption, key components of practice, challenges, and readiness indicators across multinational and indigenous firms. Results show that 64% of multinational firms have high adoption of carbon accounting practices, while that of indigenous firms is 38%. Moderate adoption in multinationals stands at 27% and indigenous firms at 41%, while low/no adoption stands at 9% and 21%, respectively. Emission reporting at 71% and sustainability auditing at 58% represent the most important practices. Carbon footprint monitoring and carbon pricing remain relatively high at 63% and 42%, respectively. Key challenges here include the high cost of carbon data technologies at 66%, weak regulatory enforcement at 59%, a lack of skilled personnel at 52%, and poor data transparency at 47%. Energy Transition Readiness is rated highest in ESG compliance reporting at 61% and gas-to-power / decarbonization project development at 58%, while renewable energy investment is at 33% and carbon capture implementation at 24%. Multinationals are more integrated on account of better governance and technical capacity, while local firms fall behind. Among others, recommendations include regulatory enforcement, capacity-building, harmonized reporting frameworks, fiscal incentives for low-carbon investment, enhanced data infrastructure, and continuous monitoring of progress toward strengthened sector-wide transition readiness.