Environmental Accounting Cost and Financial Performance of Selected Oil and Gas Companies in Nigeria

The study focused on Environmental Accounting Costs and Financial Performance of Selected Oil and Gas Companies in Nigeria. The specific objectives of the study were to investigate the relationship between environmental accounting cost and financial performance of selected oil and gas firms in Nigeria. The study was limited to ten oil and gas companies in Nigeria and covered a period of 2014-2023. The study utilized ex-post facto research design and secondary data were sought from annual reports and financial statements of the firms. Statistical Package for Social Science (SPSS) was utilized as statistical tool. Panel regression method of data was used to analyse hypotheses at the 5% level of significance. The study found out that there is negative relationship between environmental restoration cost (ERC) and financial performance of quoted oil and gas companies in Nigeria. Furthermore, it was disclosed that community development cost (CDC) has negative relationship between financial performance of quoted oil and gas companies in Nigeria. The study also found out that staff development cost (SDC) has a negative relationship between financial performance of selected oil and gas companies in Nigeria Hence, the study concluded that environmental cost and it proxies has significant effect on the financial performance. Therefore, the study recommended that oil and gas companies should ensure environmental awareness within the host communities in order to create a cordial relationship between the companies and the host communities