ENVIRONMENTAL ACCOUNTING PRACTICES AND NET PROFIT OF QUOTED OIL AND GAS COMPANIES IN NIGERIA

DAMIEIBI, Isoboye Jacob
Captain Elechi Amadi Polytechnic, Port Harcourt
Rivers State
ABSTRACT
This study investigated the effect of environmental accounting practices on net profit of quoted oil and
gas companies in Nigeria. The study used environmental accounting practices (pollution cost
accounting, waste management cost accounting and drainage cost accounting) to represent
environmental accounting. The annual audited financial accounts/reports of quoted oil and gas
companies in Nigeria for ten (10) years (2012-2021) were used as key data. Multiple regression
analysis of ordinary least square estimation was used to test the hypotheses formulated in the study.
All the analyses were computed by using statistical package for social sciences (SPSS) version 22.0.
The results obtained from the empirical analyses show that that pollution cost accounting has positive
significant effect net profit of quoted oil and gas companies; that waste management cost accounting
has insignificant effect on net profit of quoted oil and gas companies; and that drainage cost
accounting has negative significant effect on net profit of quoted oil and gas companies. The study
concluded that environmental accounting practices affects net profit of quoted oil and gas companies;
and with a view to nudging oil and gas firms towards organizational transformation, recommends that
management of oil and gas companies in Nigeria should pay particular attention to waste
management accounting to enhance their operating environment and their net profit.
Keywords: Drainage cost accounting, environmental accounting, net profit, pollution cost accounting,
waste management cost accounting