ABSTRACT

The study focuses on effects of environmental accounting on the performance of oil and gas companies in Nigeria. Oil and gasflaring have caused severe environmental damages, loss of plants, animals and human lives, and loss ofrevenue ofboth the oilproducing companies and the government petroleum exploration, exploitation, storage, distribution and transportation activities affect the environment I in a conspicuously negative manner. The method of data collection adopted, by the researcher are the use ofsecondary data, and the secondary data were derivedfrom the Central Bank ofNigeria statistical bulletin, publication ofenvironmental impact assessment agency. After collection of the data from the secondary sources, the data were tabulated and statistically analyzed using the ordinary least square analytical technique. It was discovered that there exist a significant relationship between environmental costs and earnings pershare ofoil andgas companies in Nigeria. The study also revealed that there exist a significant relationship between gas utilization and output ofoil and gas production in Nigeria. In this study we have made our attempt to assess the impact of environmental costs on earnings per share of oil and gas companies in Nigeria. This study proffers aframeworkfor environmental costs in the oil and gas industry in Nigeria. To this end, this contributes to studies on environmental costs at a global level using the perspective ofNigeria oil andgas industry. It is therefore concluded that oil spillage and gasflaring costs does not significantly affect the earnings per share ofoil and gas companies in Nigeria. Fines andpenalties tremendously affect earnings per share of oil and gas companies in Nigeria. Generally, there are no standards guiding environmental costs in the oil and gas industries in Nigeria. Oil and gas companies operating in Nigeria should take necessary measures to avoid the payment offines andpenalties. To ensure this, they should strictly comply with environmental regulations as specified by the regulatory Agency ofthe oil and gas industry.