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Green Accounting and Profitability of Oil and Gas Firms in Nigeria

Author

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  • Omole Ilesanmi Isaac

    (Department of Accountancy, Federal Polytechnic, Ileoluji, Ondo State, Nigeria)

  • Diisu Jimoh

    (Department of Accounting, University of Calabar, Cross River State, Nigeria)

Abstract

This study investigates the relationship between green accounting practices and the profitability of oil and gas firms in Nigeria. Specifically, it examines how audit size (AS), environmental audit reports (EAR), and environmental damage and litigation (EDL) influence earnings per share (EPS) as a measure of firm profitability. The study employs secondary data from the published financial and sustainability reports of selected oil and gas firms, with data analyzed using descriptive statistics, correlation, and regression analysis. The descriptive analysis reveals high variability in the data, with extreme values in EPS and environmental-related variables, indicating inconsistent performance and disclosure practices. Correlation results show not too strong relationships between green accounting variables and profitability, while regression analysis indicates that although the green accounting indicators have a positive influence on EPS, the effect is not statistically significant (Prob(F-statistic) > 0.05). The findings suggest that green accounting, in its current form within the Nigerian oil and gas sector, has not yet become a significant driver of profitability. This may be due to weak enforcement, inadequate integration of environmental policies into corporate strategies, or poor reporting standards. The study concludes by recommending stronger regulatory frameworks, improved environmental disclosure, capacity building, and the strategic alignment of sustainability initiatives with financial goals to enhance both environmental performance and firm profitability.

Suggested Citation

  • Omole Ilesanmi Isaac & Diisu Jimoh, 2025. "Green Accounting and Profitability of Oil and Gas Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 7567-7584, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:7567-7584
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    References listed on IDEAS

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