Environmental Disclosure and Financial Performance of Oil and Gas Firms in Nigeria

• Post by: airjournals
• February 18, 2026
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The study examined the environmental disclosure and financial performance of oil and gas firms in Nigeria for a period of 10 years 2015-2024. The specific objectives of the study include to: ascertain the effect of environment cost disclosure on net profit margin of oil and gas firms in Nigeria, examine effect of environment cost disclosure on return on assets of oil and gas firms in Nigeria and evaluate effect of environment cost disclosure on asset turnover of oil and gas firms in Nigeria. The study used secondary sources of data from the annual report of the selected listed oil and gas firms in Nigeria. Ex-post facto research design was also adopted. The statistical techniques used for this study were descriptive statistics and panel least square regression. The study found out that environment cost disclosure has negative (coefficient -235.1044) and non-significant (P-value 0.5788  > 0.05) effect on net profit margin of oil and gas firms in Nigeria, environment cost disclosure has a positive (coefficient 29.98939) and non-significant (P-value 0.0002 < 0.05) effect to return on assets of oil and gas firms in Nigeria and environment cost disclosure has a positive (coefficient -0.122778) and non-significant (P-value 0.8694 > 0.05) effect on asset turnover of oil and gas firms in Nigeria. Based on the findings the following recommendation were made: Companies should strive to better integrate environmental initiatives into their core operations to transform them from cost burdens into strategic advantages. Management should explore more cost-effective and sustainable environmental practices, and consider using green innovations that enhance efficiency and minimize waste, potentially improving profitability in the long run, Oil and gas firms should continue and possibly expand their environmental cost disclosures. Transparent and consistent reporting can attract environmentally conscious investors and improve resource management, which enhances asset utilization and long-term performance. Regulatory bodies should also promote mandatory environmental reporting frameworks to further support this positive link and Oil and gas firms should not disregard environmental cost disclosure. Rather, they should focus on improving the efficiency of their assets while maintaining environmental responsibility. This includes investing in eco-efficient technologies that reduce environmental impacts without compromising operational performance, which may help to eventually convert disclosures into tangible efficiency gains

Keywords: Environmental Disclosure; Financial Performance; Oil and Gas Firms; Environmental Cost Disclosure; Assets Utilization; Net Profit Margin