Environmental Conservation Costs and Financial Sustainability in Oil and Gas Companies Listed in Nigeria

Due to factors such as low-capacity production, undercapitalization, unlawful stakeholders, and costs, many oil and gas enterprises operating in Nigeria have had difficulty achieving financial sustainability. The financial sustainability of Nigeria’s oil and gas companies is significantly influenced by the extent to which corporations engage in environmental conservation and preservation. This research looked at how oil and gas businesses in Nigeria coped with the costs of environmental preservation and how it impacted their bottom line. This research used an ex-post facto methodology due to its reliance on secondary data collected from the publicly available annual financial statements of the selected oil and gas businesses. For the 22 years between 2001 and 2022, 20 out of the population’s 66 oil and gas enterprises were selected at random. The data was analyzed using inferential statistics, with the validity and reliability of the data certified by external auditors. The research found that the costs associated with environmental preservation have a significant positive effect on the long-term viability of the working capital turnover of publicly traded oil and gas companies. Specifically, adjusted R2 = 0.05, W (4, 219) = 22.8071, p 0.05. The research found that the bottom lines of Nigeria’s publicly traded oil and gas companies were negatively impacted by the money they spent on environmental protection. The research concluded that the best way to ensure the long-term financial worth of oil and gas stakeholders was for management to priorities spending on environmental protection.