EFFECT OF OIL SPILLAGE DISCLOSURE ON THE ANNUAL REPORT AND FINANCIAL STATEMENT OF LISTED OIL COMPANIES IN NIGERIA.

Abstract

Oil spillage has always be a challenge in oil and gas industry since the inception of oil extraction, exploration and exploitation in Nigeria, the host communities have suffered a lot because of the operations of oil companies in their environment resulting to oil spillage which end up in destroying the economic lives of the host communities as well as the entire ecosystem. Is on this note the study tried to examine the effect of oil spillage and how such oil companies can disclose such damages in their annual report and financial statement in which the following hypotheses were formulated and tested on environmental pollution, oil theft, community degradation and land recovery disclosures respectively. The study's tested hypotheses were accepted which indicated that there were no significance effect of those disclosures on the annual report and financial statement of listed oil companies in Nigeria. The study made use of primary source of data collection by issuing out questionnaires and personal interviews, Regression analysis was adopted to run the statistical test of the hypotheses. The study still recommended that the plight of the host communities need to be looked at critically despite the result of the hypotheses tests in order to alleviate the damage stage of the host communities.