Sustainability Disclosure and Performance of Firms in Nigeria

Abstract

This paper examines the effect of sustainability disclosure (Environmental, Social, and Governance (ESG)) on firm performance in Nigeria’s oil and gas and industrial goods sector. A quantitative panel research design was adopted using secondary data from 16 listed firms over the period 2014-2023. The study employed descriptive statistics, correlation analysis, diagnostic tests, and panel regression techniques. The Hausman test guided model selection, and a Random Effects model with clustered robust standard errors was used for estimation analyses using STATA version 14. The results show that governance disclosure has a strong positive and statistically significant effect on firm performance, social disclosure has a positive but marginally significant effect on firm performance, while environmental disclosure has a positive but statistically insignificant effect on firm performance. The study recommends firms to prioritize governance structures such as transparency, accountability, and board effectiveness to enhance financial performance, while gradually strengthening social and environmental practices for long-term sustainability.