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

This study examines the effect of environmental cost accounting on the financial performance of oil and gas companies listed on the Nigerian Exchange Group between 2015 and 2024. Using an ex post facto research design and secondary data extracted from the annual reports of seven sampled companies, the study investigates the impact of key environmental cost accounting variables waste management cost and employee health and safety cost on net profit margin as a measure of financial performance. Employing panel least squares regression with fixed effects, the findings reveal that neither waste management cost nor employee health and safety cost has a statistically significant influence on net profit margin in the sampled firms. These results suggest that environmental accounting expenditures may not directly affect short-term profitability, highlighting the need for oil and gas companies to adopt integrated and strategic approaches towards environmental management. The study recommends greater transparency in environmental cost reporting and encourages the adoption of sustainable practices to enhance long-term financial and operational outcomes.