Effect of Green Accounting Reporting on the Financial Performance of Manufacturing Firms in Nigeria

This study investigated the effect of green accounting reporting on the financial performance of manufacturing firms in Nigeria, with emphasis on environmental protection expenditure, energy consumption cost, and waste management cost. The study employed an ex-post facto research design using secondary data from audited financial statements of selected manufacturing firms listed on the Nigerian Exchange Group between 2014 and 2024. Panel Least Squares (PLS) regression was applied for data analysis. The findings revealed that environmental protection expenditure has a positive but non-significant effect on profit for the year (coefficient = 0.001160; p-value = 0.1209 > 0.05), suggesting that while such expenditure supports long-term sustainability, it does not significantly improve immediate profitability. Energy consumption cost showed a positive and significant effect on profit for the year (coefficient = 0.000720; p-value = 0.0275 < 0.05), indicating that efficient energy management directly enhances financial performance. Waste management cost exhibited a positive but non-significant effect on profit for the year (coefficient = 3.908705; p-value = 0.8695 > 0.05), implying that although waste control measures are beneficial, they do not significantly influence short-term profitability. The study concludes that green accounting practices, particularly energy cost management, are critical drivers of financial performance in Nigeria’s manufacturing sector. It recommends that firms adopt energy-efficient technologies, implement cost–benefit–driven environmental protection programs, and strengthen waste-to-wealth initiatives to align sustainability with profitability.