ENVIRONMENTAL ACCOUNTING REPORTING AND PROFITABILITY OF QUOTED OIL AND GAS FIRMS IN NIGERIA (2014 – 2025)

EZEANYA, CRESCENT OKWUCHUKWU (2026) ENVIRONMENTAL ACCOUNTING REPORTING AND PROFITABILITY OF QUOTED OIL AND GAS FIRMS IN NIGERIA (2014 – 2025). Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.

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Abstract

This study examined the effect of environmental accounting reporting on the profitability of quoted oil and gas firms in Nigeria from 2014 to 2025. Despite increasing environmental expenditures mandated by regulators, there is an ongoing debate regarding their financial utility. The specific objectives were to determine the impact of Environmental Restoration Cost (ERC), Community Development Cost (CDC), and Waste Management Cost (WMC) on Return on Assets (ROA). The study adopted an ex-post facto research design, utilizing a purposive sample of ten (10) firms listed on the Nigerian Exchange Group (NGX). Panel data extracted from annual reports were analyzed using Descriptive Statistics, Correlation Analysis, and Fixed Effects Panel Regression. The empirical findings revealed that ERC, CDC, and WMC all have a negative and statistically insignificant impact on the Return on Assets of the sampled firms. Furthermore, diagnostic tests indicated severe multicollinearity between community and waste spending. In addressing the research questions, the study concludes that environmental accounting reporting currently acts as an unavoidable financial burden rather than a strategic profitability driver, thereby providing robust empirical support for the Trade-off Theory. Consequently, it is recommended that corporate managers shift from passive regulatory compliance to active cost-optimization by creating dedicated decommissioning trust funds, while regulatory authorities should introduce Green Tax Credits to encourage sustainable compliance without stifling corporate efficiency.

Item Type: Thesis (Other)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Management and Social Sciences
Depositing User: CHIBUEZE EZE
Date Deposited: 30 Jul 2026 13:00
Last Modified: 30 Jul 2026 13:00
URI: http://eprints.gouni.edu.ng/id/eprint/6090

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