CRG Seminar: Multinational Companies and the Rhetoric of Climate Change and Sustainable Development - Evidence from cement production in Nigeria

The attempt to reconcile the conflicting needs for foreign investments, local entrepreneurial promotion, inclusive development, and environmental sustainability in countries with weak governance and regulatory institutions motivated this work by our Visiting Fellow Dr Nelson Nkwor (Alex Ekwueme Federal University, Nigeria). This study assesses the commitment of multinational companies (MNCs) to energy-efficient and climate-responsive measures within Africa’s cement manufacturing sector. Focusing on the operational context of Dangote Cement Plc (a local MNC) and Lafarge Africa Plc (a foreign MNC) in Nigeria, the study interrogates what drives the energy choice of local and foreign MNCs. The research reveals that although both companies operate in the same environmental setting, their environmental responsibilities are influenced by host-country institutional strength and adherence to home-country laws vis-à-vis global operating standards. The findings also indicate that in regions with lax institutions, all MNCs prioritise cost-effective energy sources to enhance profit margins, potentially at the expense of the environment. The study underscores the imperative for Nigeria and other African countries to fortify environmental governance and institutions, ensuring compliance with relevant national and international climate change mitigation protocols. Additionally, governments in Africa should implement incentive policies to encourage MNCs to invest in cleaner energy solutions.

This event will be held physically in Leiden. For registrees who cannot travel to Leiden a link to an online platform will be sent one day before the start of the event.

This seminar is organised by the CRG 'Governance, entrepreneurship and inclusive development'.

Photo credits: Fachab (via Wikimedi Commons).