Carbon Pricing Disclosure and Financial Performance of Listed Oil and Gas Firms in Nigeria

This study examined the effect of carbon pricing disclosure on the financial performance of listed oil and gas firms in Nigeria. Specifically, it investigated how energy cost disclosure, emission penalty disclosure, and carbon tax disclosure affect return on assets (ROA), return on equity (ROE), and net profit margin (NPM), with firm size included as a control variable. The study adopted a panel data regression approach using data from six purposively selected oil and gas firms listed on the Nigerian Exchange Group (NGX), covering the period from 2012 to 2024. The results revealed that energy cost disclosure has a significant positive effect on ROA, emission penalty disclosure positively affects ROE, and carbon tax disclosure significantly improves NPM. In all models, firm size also showed a significant positive relationship with financial performance. The study concludes that enhanced carbon pricing disclosure contributes positively to the financial performance of oil and gas firms in Nigeria. It recommends that corporate managers strengthen disclosure practices, regulators introduce clearer standards, and investors consider disclosure quality when making investment decisions. The study contributes to the growing literature on environmental reporting in emerging economies and provides practical insights for improving transparency and profitability in Nigeria’s oil and gas sector.