Sustainability Reporting and Financial Performance of Listed Oil and Gas Firms in Nigeria

Omowumi Jumoke OGUNLEYE; Muinat Wuraola ALAWU; Chidinma Patience ANIFOWOSHE

Omowumi Jumoke OGUNLEYE University of Lagos, Akoka
Muinat Wuraola ALAWU University of Lagos, Akoka
Chidinma Patience ANIFOWOSHE University of Lagos, Akoka

Keywords: Economic Disclosure, Environmental Disclosure, Financial Performance, Social Disclosure, Sustainability Reporting

Abstract

This study investigates the relationship between sustainability reporting and the financial performance of listed oil and gas firms on the Nigerian Exchange Group (NGX). Adopting an ex-post facto research design, descriptive and inferential statistics were used for data analysis while panel least square regression model was utilized to test the study hypotheses. Results indicated that firms listed on the Nigerian oil and gas industry exhibit a considerable degree of sustainability disclosures. However, only social disclosure has a significant and positive effect on return on total assets (proxy for financial performance) while economic and environmental disclosure do not exert a significant impact on ROTA. The study concluded that listed oil and gas firms should focus on sustainability issues, provide better environmental disclosures in terms of content and quality to enhance stakeholder confidence and integrate sustainability practices into their core business strategy to strengthen the potential impact of sustainability reporting on their financial performance.