IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 2 2025
DOI: 10.56201/jafm.vol.11.no2.2025.pg187.205

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Green Accounting and Financial Performance of Listed Oil and Gas Companies in Nigeria

Dan Patrick B S, Dr Adebimpe O Umoren, Dr Eno G Ukpong

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Abstract

The effect of green accounting on the financial performance of Nigerian listed oil companies was examined in this study using an experimental research design, ex-post facto data extracted from the Nigerian Exchange Group and the annual published financial statement of Nigerian oil companies, a sample size of eight, and a time span of ten (10) years from 2014 to 2023. The study employed unit root testing and descriptive statistics, and it used Panel data regression for the test of hypothesis with the help of E-view statistical software version 9. The study's independent variable is green accounting, as measured by the costs of environmental sustainability, waste management, and environmental cleanup, while the dependent variable is financial performance, as measured by return on capital employed, earnings per share (EPS), and net profit margin (NPM). The study's conclusions showed that there is no substantial correlation between the costs of environmental sustainability, environmental cleanup, and waste management and return on capital invested, earnings per share, and net profit margin. The study came to the conclusion that green accounting influences the financial performance of Nigerian listed oil companies. It suggested that quoted oil and gas companies increase the amount of economic activity related to the environment and disclose this in their annual reports in order to improve their financial performance and long-term corporate sustainability when making investment decisions. Additionally, the government and authorities must to firmly enforce the disclosure of green accounting in oil corporations' annual reports.

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