The Implication of NESREA Act and Financial Performance on Environmental Disclosure in Nigeria

The study assesses the implication of compliance and enforcement of the NESREA Act, profitability, and Growth on environmental disclosure of cement companies in Nigeria. Secondary data comprising financial and non-financial information were source from annual accounts and reports of the sample companies, spanning a period of five years (2015 – 2019). Panel regression models were considered in assessing the implication of the variables under study. The findings reveal that NDI has a significant P-value which signifies that compliance with NESREA Act increases environmental disclosure by 2.9%. ROA also exerts a significant impact on environmental disclosure. This implies that a 1% increase in the profitability of the sample companies will increase environmental disclosure by 1.4%. Firm Size is also positive and exerts significant impact, by implication, the result suggested that an increase in the total revenue will lead to about 9% increase in environmental disclosure. Hence the study recommends among others that measuring, treatment, disclosure, and reporting of environmental activities need to be standardized and mandated to give a true and fair view of environmental management practices. These will not only protect the environment but will also enhance the firm's competitiveness and subsequently lead to high corporate performance.