AUDIT COMMITTEE INDEPENDENCE AND SUSTAINABILITY REPORTING OF LISTED NIGERIAN OIL AND GAS FIRMS.

This study investigates the effect of audit committee independence (ACI) on the sustainability reporting practices of listed Nigerian oil and gas firms, with a specific focus on economic sustainability reporting (ECR) and environmental sustainability reporting (ENVR). Grounded in agency theory and stakeholder theory, the study posits that independent audit committees serve as a critical governance mechanism that enhances transparency, accountability, and long-term value creation.

The research employs a panel dataset covering 72 firm-year observations from selected listed oil and gas companies between 2010 and 2024. Descriptive statistics, correlation analysis, and cross-section fixed-effects regression models are utilized to examine the relationships between ACI, ECR, and ENVR. The findings reveal that audit committee independence has a statistically significant positive effect on economic sustainability reporting, indicating that firms with more independent audit committees demonstrate higher quality and credibility in economic disclosures.

In contrast, ACI has an insignificant effect on environmental sustainability reporting, suggesting that additional governance mechanisms, technical expertise, and regulatory interventions are required to strengthen environmental disclosure practices. These results underscore the importance of robust corporate governance for economic sustainability while highlighting gaps in environmental accountability. The study recommends enhancing audit committee oversight for economic reporting and implementing targeted environmental reporting frameworks, including specialized sustainability committees, to improve disclosure quality and stakeholder confidence. The findings contribute to the literature on corporate governance, sustainability reporting, and firm accountability in emerging markets.