ENVIRONMENTAL ACCOUNTING PRACTICES AND ITS BENEFITS TO OIL AND GAS COMPANIES IN NIGERIA

Abstract

This study examined environmental accounting practices and its benefits to oil and gas companies in Nigeria. Two research questions guided the study. An ex-post research design was used. From the chosen companies, proportionate sampling technique was used to choose 15 employees from each making a total of 150 employees as sample size. The researcher self-developed questionnaire tagged: Environmental Accounting Practices and Benefits Questionnaire (EAPBQ) was used for data collection with 0.93 as reliability coefficient. Descriptive statistics of mean and bar-chart were adopted in answering and presenting research questions 1 and 2. The findings of the study indicated that there was lower level of environmental accounting practices in oil and gas companies in Nigeria. Oil and gas companies accrued benefits from environmental accounting practices in Nigeria such as disclosing information about environmental performance, commitment to sustainability, transparency and accountability to stakeholders, comply with evolving environmental regulations and standards, encouraging eco-efficiency, and companies to invest in more eco-efficient. It was also recommended that government should through the Ministry of Environment and natural resources and accounting regulating bodies make environmental accounting practices a compulsory practice by oil and gas companies in Nigeria. Environmental accounting practices impact of organizational activities on the environment should be made compulsory by regulatory agencies of these companies.