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

Résumé fourni par la source

The study examined the effect of environmental accounting costs on financial performance of listed oil and gas companies in Nigeria. The objectives were to assess the effects of energy conservation costs and environmental training costs on return on assets. The scope covered NGX-listed oil and gas companies from 2014 to 2023, using audited annual reports and accounts. Anex-post facto design was adopted. The population comprised all 8listed oil and gas companies. The sample consisted of7 firms with complete data. Data analysis involved descriptive statistics, Pearson correlation, panel regression, and the Hausman specification test. The random effects model was retained (χ²=4.221, p-value = 0.239). At 5% level of statistical significance, the results showed that energy conservation costs had a negative and insignificant effect on ROA (β=−1.1112, p-value = 0.274), while environmental training costs had negative and insignificant effect on ROA (β=−0.6675, p-value =0.687). The model explained 31.5 percent of ROA variation with F=13.806 (p<0.001). The study concluded that energy conservation and environmental training costs did not yield immediate profitability gains. Among others, the study recommended that oil and gas companies should adopt a gradual approach to investing in energy efficiency projects, by modernizing energy systems in phases and integrating renewable sources and as well, management of oil and gas companies should develop training initiatives that focus on practical implementation of sustainability practices.

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