Artificial Intelligence and Environmental Performance of Listed Manufacturing Companies in Nigeria
As the transition toward green, low carbon, and sustainable development accelerates, firms are increasingly expected to adopt innovative technologies that enhance environmental efficiency. This study examines the relationship between Artificial Intelligence (AI) and Environmental Performance among listed manufacturing companies in Nigeria. The study used panel data from 36 manufacturing firms listed on the Nigerian Exchange Limited over the period 2012 2025, the study employs fixed effects regression analysis to control for firm specific heterogeneity. Environmental performance is measured using emission intensity indicators and an environmental performance index derived from disclosed sustainability metrics. AI adoption is proxied by ICT expenses scaled by total assets (AI_ICT), AI_Fintec and investments intangible digital assets (AI_Capital) related. The Hausman test confirms the appropriateness of the fixed effects estimator. The results reveal that short term ICT expenditure and fintech related investments have positive but statistically insignificant effects on environmental performance. In dissimilarity, AI capital measured by intangible digital assets exhibits a negative and statistically significant relationship with emission intensity, indicating that higher long term digital capital investment improves environmental efficiency. These findings suggest that accumulated digital capabilities, rather than temporary technology spending, drive meaningful environmental improvements in Nigeria’s manufacturing sector. The study contributes to the growing literature on digital transformation and sustainability by providing firm level evidence from an emerging economy. It highlights the importance of embedding AI into core production and environmental management systems to achieve measurable reductions in emissions. Keywords: Artificial Intelligence, AI_ Intensity, AI_ Capital, fintech related, digital technologies JEL Code Classification: Q56,…
Keywords: Artificial Intelligence, AI_ Intensity, AI_ Capital, fintech-related, digital technologies
Citation: Adeusi, S.A. (2026). Artificial Intelligence and Environmental Performance of Listed Manufacturing Companies in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 11(1), 44-61.