Environmental Accounting and Modern Financial Reporting of National Environmental Development in Nigeria

The study examines the relevance of environmental accounting to national development services in Nigeria especially the multinational oil operations. The production activities of the oil multinationals which have their impacts on the ecosystem and natural resources. This work was borne out of the expectation of the gap that exists between the multinationals companies operating in Nigeria and their host communities; years of neglect, environmental degradation, pollution and massive outcry for redress which resulted to arm struggle with attendant consequences. To this situation, environmental accounting applies to modern reporting and showcases the environmental liabilities and costs, which in turn massively threatening the subsistence economy and causes negative effects on the lives of people. A survey carried out from the oil companies operating areas in Nigeria that is the Niger Delta region. To this premise the findings showed that the practice of environmental accounting will help to bringing about an improved environmental sustainability and effective environmental management system in the Niger Delta region of Nigeria. The paper really concludes that the application of prudent environmental financial accounting will bring out environmental liabilities and costs of the oil producing areas to have proper sustainable measures. It is strongly recommended that the national oil and gas sector should adopt physical and monetary approaches as well as the petroleum/manufacturing sector to employ environmental accounting to properly access the costs.