CORPORATE GOVERNANCE AND SUSTAINABILITY REPORTING IN OIL AND GAS COMPANIES IN NIGERIA.
This study investigates the link between corporate governance mechanisms and sustainability reporting among listed oil and gas firms in Nigeria. Rising global emphasis on environmental, social, and governance (ESG) accountability has increased demands for transparency in environmentally sensitive industries. Although the sector significantly supports Nigeria’s economy, sustainability reporting remains largely voluntary and inconsistent, especially regarding environmental disclosures in oil and gas companies in Nigeria. Using an ex-post facto design, the study analyzes secondary data from annual and sustainability reports of firms listed on the Nigerian Exchange Group. A disclosure index based on Global Reporting Initiative guidelines measures sustainability reporting across environmental, social, and governance dimensions. Board size, board independence, board diversity, and audit committee effectiveness serve as independent variables, while firm size, profitability, and leverage are controls. Panel regression results show that governance mechanisms significantly influence sustainability reporting. Board independence and audit committee effectiveness have strong positive effects, while board diversity shows a weaker positive impact. Board size is insignificant. Overall, governance quality proves more important than structural features alone, underscoring the need for stronger oversight and sector-specific reporting standards.
Keywords: Corporate governance, sustainability reporting, ESG disclosure, board independence, audit committee effectiveness, oil and gas sector, Nigeria.
