Empirical Analysis of Sustainable Green Accounting Practices and Firm Performance of Listed Agro-Allied Firms in Nigeria

Abstract

This study investigates the impact of sustainable green accounting practices specifically green pollution control cost, soil degradation control cost, and climate change control cost on the performance of listed agro-allied firms in Nigeria. The study is motivated by growing global emphasis on environmental sustainability and the implementation of the Sustainable Development Goals (SDGs), which have heightened awareness of environmental accountability in Sub-Saharan Africa and Nigeria. Unethical environmental practices such as soil degradation, excessive pollution, and poor climate management continue to undermine sustainability efforts due to weak regulatory frameworks and ineffective policy enforcement. The study population comprises five agro-allied firms listed on the Nigerian Exchange Group (NGX) as of December 31, 2023. A panel dataset spanning the period 2012–2023 was obtained from the firms’ audited annual reports. The data were subjected to time series analysis, with descriptive statistics employed to summarize key variables and the Dynamic Ordinary Least Squares (DOLS) regression technique applied to examine the long-run relationship between sustainable green accounting practices and firm performance. Findings indicate that green pollution control has a positive and significant effect on firm performance. Soil degradation control and climate change control also exhibit positive and significant effects on firm performance, suggesting that proactive environmental management enhances operational efficiency and long-term profitability. The study concludes that sustainable green accounting practices are pivotal for both environmental protection and financial sustainability in the agro-allied sector. It recommends that firms should adopt technology-driven green strategies, integrate environmental cost accounting systems, and disclose their sustainability activities transparently in financial statements.