1.1 BACKGROUND OF THE STUDY
The need for environmental accounting has become the concern and focus of nations and responsible corporate management. It became one of the foremost issues on the agenda of nations and businesses earlier in the 1990’s and the reasons for this were varied emanating from both within and outside of the firm and particularly at the global level (Okoye and Ngwakwe, 2004). A lot of government enactments, laws and regulations on environmental protection have been made in several nations of the world and Nigeria is slowly responding.
In the light of the awakening to environment protection, various laws and regulations were enacted and one of such is the Environmental Impact Assessment Act, 1992. These require corporate management to consider the environmental implications of all internal decisions of their management. Also all organizations monitored by environmental policy agencies in Nigeria are expected to demonstrate much consideration in decision making.
It is rightly said that the World’s two greatest challenges are poverty and the systematic destruction of the environment. These two challenges have the capacity to destroy the entire world. It is considered that the world’s poverty level, particularly in the less developed nations is largely due to the inability to management environment which is fast degrading. Whereas industrial emission and effluence constitute great threat to the atmosphere, the native farmers are no less a threat to the effect of the ozone layer, the seas, oceans and land. Local farmers also systematically destroy the biodiversity through continued crude method of farming, falling of trees and bush burning and fishing methods without replacement of the natural resources.
Environmental issues for purpose of economic and cost accounting have also been controversial even though the topic has been identified for discussion for the