Environmental Cost Disclosure and Corporate Sustainability of Oil & Gas Companies in Nigeria

Abstract: This study investigates the relationship between environmental cost disclosure and corporate sustainability of quoted oil and gas companies in Nigeria from 2019 to 2025. Using a quantitative research design with secondary data obtained from company annual reports, sustainability disclosures, and financial statements, the study examined environmental expenditures, regulatory compliance, and corporate sustainability indicators to assess their impact on financial and environmental performance. Descriptive statistics, correlation, and regression analyses were employed to test the hypotheses. Findings reveal that firms with higher environmental cost disclosures, including pollution control, remediation, and community development expenditures, demonstrated improved financial performance and enhanced environmental sustainability. Correlation results show strong positive relationships between environmental cost disclosure and corporate sustainability (r = 0.77), regulatory compliance and environmental reporting (r = 0.68), and quantified environmental expenditures and financial resilience (r = 0.74). Regression analysis further confirms that environmental cost disclosure significantly predicts corporate sustainability outcomes, indicating that transparent reporting aligns environmental responsibility with long-term business objectives. The study concludes that environmental cost disclosure serves as both a compliance and strategic mechanism, strengthening stakeholder trust, corporate legitimacy, and sustainable growth. These findings provide practical guidance for managers, investors, and policymakers aiming to integrate environmental accountability into corporate decision-making.