The Influence of Capital Adequacy on the Factors Affecting the Environmental Compliance of Retail Petrol Outlets in Lokoja Metropolis, Nigeria

Abstract

This study was aimed at assessing the influence of capital adequacy on the factors affecting the environmental compliance of Retail Petrol Outlets (RPOs) in Lokoja Metropolis, Nigeria. Data for this study were collected via a Likert scaled based questionnaire administered to managers/supervisors and workers at the RPOs. A total of 274 questionnaires were administered for this study and Cronbach’s Alpha of 0.833 was obtained from the reliability analysis carried out on the questionnaire. Furthermore, this study made use of the non-parametric Chi-square (X2) test via cross tabulation to test the hypotheses formulated and advanced for this study. The findings of this study
indicated that the capital adequacy of the RPOs was generally low as 30.2% of the total respondents agreed to a little extent that management RPOs have funds to implement regulations. Knowledge feasibility among the RPOs was generally low as 37.4% of the respondents agreed to a little extent that RPO employees are regularly educated on compliance to environmental regulation. It was also revealed that the monitoring and enforcement practices of the relevant regulatory body were generally weak as 30.9% of the respondents completely disagreed that the regulatory body monitors implementation of regulations. The Chi-square test revealed that capital adequacy had a relationship with technical feasibility (P = .000, α = .05), monitoring and enforcement practices (P = .000, α = .05) and knowledge feasibility (P = .000, α = .05) of the RPOs. Based on the finding, this study recommended that relevant technology required at the RPOs should be made available by DPR and incentives should be granted to RPOs in a bid to encourage compliance in the study area.