IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 22, Issue 9. Ser. III (September 2020), PP 58-66 www.iosrjournals.org DOI: 10.9790/487X-2209035866 www.iosrjournals.org 58 | Page Environmental Disclosure and Financial Performance of Listed Oil and Gas Companies in Nigeria: A Review on Literature Solomon Pwagusadi Joyce Accounting Department, Adamawa State University Mubi, Nigeria Abstract Climate change and global warming are some of the major challenges facing the world, and operations by companies mostly cause this environmental challenge. The environmental challenges have effects on the environment. These effects include pollution, emissions, and environmental degradation. Companies especially those whose operations have effect on the environment should disclose their financial commitments towards the environmental improvement, most especially those companies whose operations has to do with pollution and other environmental hazard. Disclosing environmental information in annual reports continues to be a recent issue in research. The existing empirical works on environmental disclosure and financial performance have shown mixed results. . The mixed results require further investigation. The aim of this study is to review literatures on effect of Environmental disclosure on financial performance of listed oil and Gas companies in Nigeria, and to identify the possible factors that accounts for the mixed results. Based on the review there are positive and negative effects, it means that through disclosing environmental information it will have effect on the financial performance of oil and gas companies in Nigeria. Therefore companies should disclose environmental information in their annual reports. The differences in results could be as a result of the voluntary nature of Environmental disclosure in Nigeria, in presenting environmental information, to ensure uniformity in reporting environmental issues, there is no definite accounting standards but rather guidelines in Nigeria. The Government should come up with clearly defined policies, standards on environmental disclosure and ensure its implementation. Further studies can be conducted in this research line, in different industries and different time periods and also by monitoring updated guidelines and policies of the government on environmental disclosure. Key Word:Environmental Disclosure, Financial Performance, VoluntaryDisclosure, MandatoryDisclosure --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 29-08-2020 Date of Acceptance: 14-09-2020 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction Climate change and global warming are some of the major challenges facing the world, and operations by companies mostly cause this environmental challenge. The environmental challenges have effects on the environment, these effects includes pollution, emissions, and environmental degradation. Ohidoa, Omokhudu andOserogho (2016) are of the opinion that companies especially those whose operations have effect on the environment should disclose their financial commitments towards the environmental improvement, most especially those companies whose operations has to do with pollution and other environmental hazard. Disclosing environmental information in annual reports continues to be a recent issue in research. According to Almosh and Monsor (2020), non-financial reporting is growing as companies, stakeholders and shareholders know that these issues eventually affect the overall long term performance of companies. According to Samuel and Ekundayo (2016), Companies are facing pressures to demonstrate responsibly towards the environment, in responding to these pressures companies disclose on environmental impact of their activities The demands by the communities are increasing, companies are required to disseminate more information on environmental issues(Luo and Tang 2014).It is expected that company’s effort about the host environment should be disclosed in the annual reports for the public to see the efforts put in by the company in maintaining it’s environment. In Nigeria, in presenting environmental information to ensure uniformity in reporting environmental issues, there is no definite accounting standard but rather guidelines issued by some organizations e.g Regulation Enforcement Agency Act of 2007. These guidelines are not mandatory in nature but rather advisory, because it is not mandatory most companies tend to disclose information just to conform to industry practices, pressures from environmental advocates. (Okafor 2018). Okafor (2018) posited that environmental accounting disclosure positively impact the business value of an organization, and hence improve financial performance. Financial performance is a general measure of how