ENVIRONMENTAL ACCOUNTING AND THE PROFITABILITY OF CONSUMER GOODS MANUFACTURING CORPORATIONS IN NIGERIA

Abstract

Accounting for environmental impacts has the capacity to inform policymakers about environmental conditions. This research focused largely on determining whether or not there was a connection between environmental accounting and financial success for businesses in Nigeria. The research used secondary data, including 2020 annual reports from firms listed on the NEG that manufacture consumer products. Twenty-six (26) consumer products manufacturing businesses were randomly selected for the research. The goals of the study were accomplished by employing the Spearman Rank Order Correlation Coefficient. The study found that environmental accounting metrics (net profit margin, dividend per share, and profits per share) were positively and significantly related to business profitability. Findings indicated a good and statistically substantial correlation between environmental accounting and financial efficiency of Nigerian businesses. To prevent environmental aggression among young people, the research suggests that firms disclose their spending on environmental initiatives in yearly reports and comply with national environmental legislation.