This study investigated the effect of carbon disclosure on the firm value of companies listed on the Nigerian Exchange Group, with implications for sustainability reporting practices across Sub-Saharan Africa. The specific objective was to examine how disclosures on energy consumption, carbon intensity, and greenhouse gas emissions influence market capitalization. An ex-post facto research design was employed, drawing on a population of 44 listed firms, comprising 21 consumer goods, 13 industrial goods, and 10 oil and gas firms. Using purposive sampling, 28 firms were selected. Secondary data covering a ten-year period (2014–2023) were extracted from annual reports, and analyses were conducted using descriptive statistics and Ordinary Least Squares regression. The results revealed that energy consumption disclosure has a significant positive effect on market capitalization (β = 1.529, p = 0.000), whereas carbon intensity disclosure (β = 0.265, p = 0.666) and greenhouse gas emissions disclosure (β = 0.895, p = 0.101) exert positive but statistically insignificant effects. The findings suggest that while Nigerian investors respond strongly to energy-related transparency, broader environmental disclosures such as carbon intensity and greenhouse gas emissions have yet to gain significant traction in capital market valuation. The study concludes that improving the quality and standardization of energy consumption disclosures can enhance firm value in Nigeria and serve as a benchmark for similar emerging markets in Sub-Saharan Africa. It recommends that listed firms provide more comprehensive and comparable energy disclosure, detailing types, sources, and efficiency, in order to strengthen investor confidence and align with global sustainability expectations.
Keywords: Energy consumption, Carbon intensity, Greenhouse gas emissions, Firm value, Market capitalization, Sub-Saharan Africa, Environmental transparency.
Citation: Iliemena-Ifeanyi, R. O., & Goodluck, H.C. (2025). Effect of Carbon Disclosure on Firm Value: Evidence from Sub-Saharan Africa. J Business & Eco Insights.,1(2):1-12.