Nexus between environmental accounting and financial performance of listed downstream oil and gas firms in Nigeria

Abstract

This paper examines the effect of environmental cost factors on stated profits of oil and gas companies in Nigeria. Ex-post facto research design was adopted and a panel data from 2014 to 2023 was used to examine the financial performance of 13 firms out of the 14 oil and gas company listed on the Nigeria Stock Exchange. Findings revealed that Community Development Cost (CDC), significantly influenced the financial performance of the selected firms while employee’s health and safety cost does not have significant effect on the financial performance of the Nigeria oil and gas firms. The paper therefore recommends among others that, the management of the listed oil and gas firms should increase contributions to host communities’ in order to guarantee environmental safety so as to have a conflict-free operational atmosphere required for maximum productivity, profitability and silence the militants’ agitation in the host communities.