Environment, Sustainability, and Corporate Governance in Nigerian SMEs

Abstract

Promoting environmental sustainability has become increasingly vital for responsible business operations, especially in areas where ecological challenges and regulatory enforcement are weak. In South-West Nigeria, small enterprises constitute a major segment of the private sector, yet their adoption of environmentally sustainable practices remains insufficient. This study examines how elements of corporate governance, namely leadership structure, accountability systems, and strategic oversight, influence the environmental sustainability initiatives of SMEs within the region. Employing a structured questionnaire and cross-sectional design, data were collected from 378 SME owners and analyzed using multiple regression techniques. The analysis reveals that leadership structure (β = 0.416, p < 0.01), accountability mechanisms (β = 0.263, p < 0.01), and strategic oversight (β = 0.215, p < 0.05) each have a statistically meaningful impact on environmental sustainability practices. These outcomes suggest that strengthening governance arrangements within SMEs can catalyze better environmental outcomes. Based on these insights, the study recommends enhancing internal governance systems, increasing stakeholder awareness, and implementing supportive policies that can help SMEs integrate sustainability into their core operations and long-term planning.