ENVIRONMENTAL ACCOUNTING AND SUSTAINABLE DEVELOPMENT IN OIL AND GAS INDUSTRY IN NIGERIA

Abstract

The study focusses on the impact of environmental accounting on sustainability development in the oil and gas firms listed at the Nigerian Stock Exchange. The study notes that although oil and gas yield enormous revenue to the operating firms and the government yet the hazards caused to the host communities are in most case not addressed by these companies. The objectives of the study is to assess the impact of environmental accounting disaggregated into oil pollution cost, oil spillage cost, oil drilling and waste disposal cost and oil degradation cost on human poverty index as a proxy for sustainable development. The data for the study which were sourced from various issues of financial statements of sample firms and Central Bank of Nigeria, covers the period, 2009-2020. The study utilizes OLS technique for the analysis. The study finds that human poverty index is significantly and positively responsive to changes in oil degradation cost (0.14), contrary to its 0.12% negative response to changes in oil pollution cost, 0.18% oil spillage cost as well as 0.07% oil drilling and waste disposal cost. Therefore, the study recommended that adequate laws should be put in place to compel oil firms to increase expenditures aimed at improving the environment.