Effect of Air Pollution Control Investments on Financial Performance of Small Scale Agricultural Firms in Nigeria

Abstract

The study examined the effect of air pollution control investments on financial performance of small scale agricultural firms in Nigeria. The specific objective was to ascertain the extent to which investment in air pollution control equipment and investment in air pollution control practices affect profit return on selected agriculture firms in Nigeria. Survey research design was adopted in the study. The population comprised owners/managers of 8,687,966 small-scale agricultural enterprises in Nigeria from which a sample size of 400 was selected. The study collected primary data from the respondents using structured questionnaire. The research questions were analysed using mean and frequency distribution. The hypotheses were tested using multiple regression analysis. The findings are: investment in air pollution control equipment has a significant and positive effect on the profit return of selected small scale agricultural firms in Nigeria (b = 0.560; p-value = 0.000); investment in air pollution control practices has a significant and positive effect on the profit return of selected small scale agricultural firms in Nigeria (b = 0.423; p-value = 0.000). In conclusion, integrating pollution control into operational strategies is not merely a compliance measure but a viable contributor to firm profitability. The study recommends that managers of small-scale agricultural firm should allocate a dedicated portion of the firms’ annual capital expenditure toward the acquisition and maintenance of air pollution control equipment such as emission capture systems, exhaust treatment units, or air filtration devices.