Environmental Appraisal Costs and Profitability of Oil and Gas Companies in Niger Delta Region of Nigeria

Nelly Raphael Imong, Udemeobong Bahakongfe Umagu,
Timothy Oluwatominiyi Oni, Mary Eyong Nkang, Ph.D *


This study examined the effect of environmental costs on profitability of oil and gas companies in the Ni
Delta region of Nigeria. To achieve the above objectives, the researcher used primary data to collect informat
from the respondents through the use of questionnaire. A survey research design was adopted for this study
well-structured questionnaire was issued to 398 staff of oil and gas firms whose operations involve
exploration and exploitation of oil and gas and iwo hundred and seventy (270) were retrieved from
respondents. A Conlirmatory factor analysis was conducted to ascertain the validity and reliability of t
research instrument. The study model estimated with the aid of qualitative regression models (order
regression). The results showed that environmental pollution appraisal costs has significant effect ont
probability of oil and gas fims in Niger Delta Region of Nigeria. The study concluded that environment
pollution appraisal costs affect profitability of oil and gas firms in Niger Delta Region of Nigeria. The stuc
therefore recommended amongst others that oil and gas firms should monitor their operations effectively 1
prevent environmental internal failure and reduce the cost ofrework and pollution.