Esg Sustainability Disclosures and Market-Based Valuation in an Emerging Economy: Evidence From Listed Nigerian Oil and Gas Firms in Nigeria

This study examines the effect of Environmental, Social and Governance (ESG) sustainability disclosure on share price of listed oil and gas companies in Nigeria over ten-year period covering 2016 to 2025. The research employed three dimensions of sustainability disclosures, Environmental, Social and Governance (ESG) while share price form the Proxy of the dependent variable (Market performance Valuation). The research used an ex-post factor research design, with population consisting of all the eleven (11) listed oil and gas companies in Nigeria as of 31st December 2025. Judgmental Sampling technique was used in selecting only (7) seven oil firms whose report are up to the study reporting date. Data was sourced from secondary sources, since this is a quantitative research grounded on the positivist paradigm. The analysis was conducted using the two-step system GMM estimation technique, which addressed the dynamic nature of firm performance and controlled for potential endogeneity. However, the findings of the GMM analysis revealed that only environmental and social sustainability had a statistically significant impact on market-based performance, as measured by share price. While Governance disclosure were not statistically significant on share price of listed oil and gas firms. Although the coefficients for the indicators of the variables (Governance Sustainability) were having positive signed in the baseline model (Model One) however, the p-values of the variable (Governance disclosures) exceeded the 5% threshold for significance. In line with the findings it was concluded that, high or low levels of information asymmetry do always alter how investors interpret sustainability disclosures. Based on the findings and conclusions, the study recommended among other things that, given the broader dimension of direct effects of the study variables, capital market stakeholders should initiate collaborative ESG education and policy reform efforts to help companies improve ESG disclosure practices.