SUSTAINABILITY DISCLOSURES AND PROFITABILITY OF LISTED OIL AND GAS FIRMS IN NIGERIA

This study examined the effect of pillars of sustainability disclosure on profitability (return on asset) of oil and gas firms in Nigeria. The specific objectives of the study were: to examine the effect of social, economic and environmental pillars of sustainability disclosures on return on assets of Oil and Gas firms in Nigeria. The population of the study was made up of all the manufacturing Oil & Gas firms listed in Nigerian Exchange Group, while Con-oil, Forte Oil, Capital Oil, Total Nigeria and MRS oil Nigeria were selected. The statistical tool used was multiple regression analysis, and the findings revealed that social, economic and environmental pillars of sustainability disclosures have no significant effect on Return on Assets (ROA) of Oil and Gas firms in Nigeria. The study recommended that Oil & Gas manufacturing firms should ensure that they report their social, economic and environmental activities in order to enhance their performance level and compete favorably in Oil sector. This will also enable all the stakeholders appreciate firms’ annual report and put reliance on the published financial statements in their investment decisions. When a firm enjoys legitimacy, the performance of the organization will be improved significantly. The study also recommended that there should be standardized Sustainability Index for ranking firms’ reportage in order for the firms to adhere strictly to voluntary and mandatory disclosures.