SUSTAINABILITY REPORTING AND ITS EFFECT ON THE FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA

This study investigates the effect of sustainability reporting on the financial performance of manufacturing firms in Nigeria. It focuses on how sustainability disclosures influence return on assets (ROA) and return on equity (ROE). Grounded in stakeholder and legitimacy theories, the study adopts a quantitative research design using secondary data obtained from the annual financial and sustainability reports of listed manufacturing firms between 2017 and 2022. The analysis was conducted using multiple regression models to assess the relationship between sustainability reporting and financial performance, with firm size and leverage as control variables. The findings reveal that sustainability reporting has a positive and statistically significant effect on both ROA and ROE. This suggests that firms engaging in transparent and consistent sustainability disclosures tend to perform better financially, likely due to improved stakeholder trust and operational efficiency. The study concludes that sustainability reporting is a strategic driver of financial performance rather than a mere regulatory obligation. It recommends the mandatory adoption of standardised sustainability frameworks such as the Global Reporting Initiative (GRI), as well as increased awareness and integration of sustainability into corporate strategy.