Effect of Sustainability Reporting On the Financial Performance of Selected Oil and Gas Firms in Nigeria

This study examined the effect of sustainability reporting on financial performance of oil and gas companies in Nigeria. The objectives were to find out the effect of social disclosure on return on equity of listed oil and gas firms in Nigeria; determine the effect of corporate governance disclosure on their return on equity; and ascertain the impact of environmental disclosure on their return on equity. Ex-post facto design was adopted. The independent variable of the study is sustainability accounting proxied by environment reporting (investment in environmental and green projects), social reporting (investment in social responsibility) and governance reporting (board size). The dependent variable of the study is firm’s performance measured by return on equity. Data were extracted from the comprehensive income statements and financial position of five listed oil and gas companies which are Ardova Nigeria Plc, Oando Plc, Conoil Plc, MRS Plc and Totalenergies covering the period from 2011 to 2024. The data were subjected to unit root test, cointegration, and multiple linear regressions. Findings revealed that social responsibility disclosure has negative but significant effect on return on equity of listed oil and gas firms in Nigeria. Corporate governance disclosure has positive and significant effect on return on equity of listed oil and gas firms in Nigeria. Environmental disclosure has positive but no significant effect on return on equity of listed oil and gas firms in Nigeria. Evidence provided a conclusion that sustainability reporting actually led to improved financial performance of the oil and gas companies in Nigeria. Based on the findings, it was recommended that: the management and stakeholders of the oil and gas companies in Nigeria such continue to be socially responsible. The board size should be maintained by the stakeholders of the companies.