CARBON EMISSION DISCLOSURE AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA
Keywords:
Carbon Dioxide Disclosure, Carbon Emission Disclosure, Financial Performance, Hydrocarbon Disclosure, Nitrogen Oxide DisclosureAbstract
The study examined the effect of carbon emission disclosure on the financial performance of listed oil and gas companies in Nigeria. The specific objective was to assess the effect of carbon dioxide disclosure, nitrogen oxide disclosure, hydrocarbon disclosure and carbon mono-oxide disclosure on the operating cashflow ratio of listed oil and gas firms in Nigeria. Ex-post facto research design was deployed. The population comprised eight (8) listed oil and gas firms in Nigeria. A sample size of seven (7) firms were selected using purposive sampling technique. Secondary data were collected from firms’ annual reports over a ten year period (2015-2024). The data were analysed using descriptive test while hypotheses were tested using panel least square regression. The findings revealed the following: carbon dioxide disclosure has a positive and significant effect on operating cashflow ratio of listed oil and gas firms in Nigeria (β = 0.1542, p = 0.0078); nitrogen oxide disclosure has a positive and significant effect on operating cashflow ratio of listed oil and gas firms in Nigeria (β = 0.4695, p = 0.0018); hydrocarbon disclosure has a positive and significant effect on operating cashflow ratio of listed oil and gas firms in Nigeria (β = 0.2688, p = 0.0000); carbon monoxide disclosure has a positive and significant effect on operating cashflow ratio of listed oil and gas firms in Nigeria (β = 0.4695, p = 0.0018). In conclusion, for oil and gas companies in Nigeria, embracing carbon emission disclosure is not only a response to environmental imperatives but also a strategic move to secure their long-term viability and competitiveness in a rapidly evolving global setting. The study recommends that the Nigerian Exchange Group (NGX) and the Financial Reporting Council of Nigeria (FRCN) need to strengthen compliance requirements by mandating the disclosure of carbon monoxide emissions as part of listed companies' financial and environmental reports. This would standardize reporting practices and enhance market-wide transparency in the oil and gas sector.
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