ENVIRONMENTAL ACCOUNTING AND CORPORATE SUSTAINABILITY IN OIL AND GAS COMPANIES IN NIGER DELTA: THE ACCOUNTANT’S ROLE IN A POLLUTED ECOSYSTEM

This study examines the extent of environmental accounting practice and corporate sustainability disclosure in oil and gas companies in the Niger Delta, and evaluates the role of the accountant in a heavily polluted ecosystem. A mixed-method design was adopted across 10 oil and gas companies operating in Rivers, Bayelsa and Delta States. Between February and May 2025, survey data were collected from 95 respondents (35 accountants, 25 HSE managers, 20 community liaison officers and 15 external auditors) and complemented by 18 in-depth interviews with senior accountants, HSE directors and host community leaders. Quantitative data were analysed with descriptive statistics and regression using SPSS 27, while interview data were analysed thematically using NVivo 12. Environmental accounting is practised at a low level (grand mean = 2.28) and is centred on compliance costs rather than full-cost accounting. Sustainability disclosure and community accountability are similarly weak (grand mean = 2.25), and only 28% of the companies quantify gas flaring and oil spill costs in their financial statements. The leading barriers are the absence of a Nigerian-specific accounting standard for environmental costs, management’s treatment of environmental cost as overhead, and accountants’ limited competence in environmental audit. Although 85% of accountants believe they should attend HSE meetings, only 15% are invited. Environmental accounting practice nevertheless has a positive and significant effect on corporate sustainability (R = 0.71, R² = 0.50, p < 0.05). The study proposes the E-C-D Framework (Environmental Cost Disclosure, Community Accountability, and Deterrence and Assurance) to guide regulators, professional bodies, companies and host communities.