Environmental Costs and Financial Performance of Manufacturing Firms in Nigeria: an Empirical Evidence of Total Nigeria Plc

This research examined the influence of environmental costs on the performance of manufacturing firms in Nigeria: An empirical study of Total Nigeria Plc. The study employed pollution prevention cost, environmental protection cost, costs of resource recycling and environmental Restoration costs as variables. The research  study deployed ex-post facto research design of the study. They study employed time series analysis method in obtaining the data used for analysis. The time series data covers from 2014-2023 accounting year. The study made use of descriptive statistics like frequency tables and simple percentages to analyse  data collected and simple linear regression method of analysis was used to test the hypothesis at 0.05% level of significance. Finding among others showed that environmental cost have significant influence on the performance of firms in Nigeria ( Total Nigeria Plc) proxy by aggregate donations and sponsorship costs and operating profit for the period under study. It was concluded that while environmental costs impact short-term profit, they contribute to sustainable financial performance. Based on this and other findings, the study recommended among others that firms should incorporate pollution prevention costs, environmental protection costs and other related expenses into their financial planning and budgeting processes. This ensures that these costs are accounted for and managed proactively, rather than being treated as unexpected expenses.
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