Determinants of Environmental Disclosures in Nigeria’s Oil and Gas Companies

  • CO Mgbame
  • GO Ikhu-Omoregbe


The objective was to determine the effect of firm size, leverage, profitability and firm origin on the extent of environmental disclosures in all quoted companies in the Nigeria’s oil and gas sector. A sample of 10 companies was selected using the simple random sampling technique. Secondary data were utilized for the study from annual reports for 2010 and 2011 and content analysis was used to extract data for the dependent variable. The ordinary least squares regression technique was used as for data analysis. There was a negative correlation between the extent of environmental items disclosed and Firm Size. The effect of industry of operation also showed a negative relationship but company Origin and profitability were positively related to the extent of environmental disclosures by companies. We recommend that there is the need for regulatory agencies to develop an environmental responsibility framework that focuses considerably on utilizing firm interest and providing corporate incentives and penalties for environmental responsiveness and irresponsiveness respectively. In this regards, the Nigerian securities and exchange commission (SEC) may need to consider the introduction of environmental responsibility disclosures as a criterion for been quoted on the stock markets as several markets have begun to think in that direction.

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print ISSN: 2141-4343