Environmental Accounting Practices and Financial Performance of Listed Oil and Gas Companies in Nigeria

The study is concerned with Environmental Accounting Practices and Financial Performance of Listed Oil and Gas Companies in Nigeria. Primary and Secondary methods of data collection were used in gathering relevant data for this research work. The secondary source adopted was the use of financial summary from ten (10) different Oil and Gas Companies in Nigeria. The researcher adopted survey and ex-post facto designs. Data were collected, coded and analyzed using data processing using SPSS to test the hypothesis. The Null Hypothesis is not rejected. Therefore, there is no significant influence of EAA on ROA. Finding reveals that the influence of Environmental Financial Accounting (EFA) on profitability of the listed oil and gas companies in Nigeria include: brand reputation and customer preference, regulatory compliance and enhance stakeholder’s relationship. The finding also reveals that the impact of Environmental Management Costs (EMC) on profitability of the listed oil and gas companies in Nigeria include: operational efficient, risk mitigation, social responsibility and stakeholder’s engagement. It was recommended that oil and gas companies in Nigeria should disclose all the four types of the environmental accounting elements/issues namely: environmental financial accounting, environmental management cost, environmental energy and materials as well as environmental accounting audit (both good and bad news, financial and non-financial accounting information) in their annual reports in line with the GRI Standards (2021) and financial statement should have a section in the annual report. The study also recommended that, mandatory environmental accounting reporting should be adopted by the oil and gas in Nigeria to eliminate negligence of environmental matters by the companies and stricter sanctions for defaulters as well as tax incentives should be granted to firms with full compliance.