Sustainability Accounting Disclosure and Financial Performance of Listed Consumer Goods Companies in Nigeria

This study investigated whether sustainability accounting disclosures influence the financial performance of consumer goods companies quoted on the Nigerian Exchange Group (NGX). Particular attention was given to environmental, social, and governance (ESG) disclosures and their respective effects on Return on Assets (ROA). An ex post facto research design was employed, using secondary information extracted from audited annual financial statements and sustainability reports of five purposively selected companies covering the 2020–2024 period. The selected firms were Nestlé Nigeria Plc, Cadbury Nigeria Plc, Coca-Cola HBC Nigeria Plc, Guinness Nigeria Plc, and Dangote Sugar Refinery Plc, resulting in a balanced panel dataset comprising 25 firm-year observations. Disclosure indices for environmental, social, and governance information were constructed in line with the GRI Universal Standards (2021). The data were analyzed using descriptive statistics and panel-data regression techniques. Both Fixed Effects and Random Effects estimations were performed, while the Hausman specification test was applied to determine the more appropriate model. Findings from the selected Random Effects model indicated that environmental disclosure was positively associated with ROA, although the relationship was not statistically significant. Social disclosure recorded a negative and statistically insignificant relationship with ROA, whereas governance disclosure demonstrated a statistically significant relationship with financial performance. The study consequently underscores the need for listed consumer goods companies to enhance the quality and scope of sustainability-related reporting, with particular emphasis on governance disclosures as an important factor in strengthening corporate financial performance.