Governance Quality and Environmental Compliance in Manufacturing Firms in Ogun and Oyo States

This study examines the relationship between corporate governance quality and environmental compliance in manufacturing firms operating in Ogun and Oyo States in South West Nigeria. Environmental compliance, encompassing adherence to the National Environmental Standards and Regulations Enforcement Agency's requirements, Environmental Impact Assessment conditions, and sector-specific pollution standards, is increasingly framed as a governance responsibility in Nigeria's evolving regulatory environment. Manufacturing firms in Ogun and Oyo States, particularly in industrial estates near urban centres, have faced growing enforcement scrutiny. Drawing on legitimacy theory, stakeholder governance theory, and the corporate environmental management literature, this study examines how governance dimensions including board environmental expertise, sustainability committee existence, and external audit scope relate to environmental compliance scores measured using NESREA inspection records and self-assessed environmental management system certifications. A mixed-method design is adopted, combining secondary data from thirty manufacturing firms over five years with interviews of fifteen environmental managers and compliance officers. Panel regression analysis controls for firm size, industry sub-type, and regulatory inspection frequency. The study addresses a gap in the South West manufacturing governance literature by connecting board-level governance attributes to environmental compliance outcomes. Findings will assist NESREA, manufacturing firm boards, and state environmental ministries in designing governance-led compliance improvement frameworks. Keywords: corporate governance, environmental compliance, manufacturing firms, South West Nigeria, NESREA.