Does Oil Marketing Companies in Nigeria Complied with Ipieca 2015 Guidelines on Voluntary Disclosure?

International Journal of Research and Scientific Innovation (IJRSI) | Volume VI, Issue V, May 2019 | ISSN 2321–2705

Does Oil Marketing Companies in Nigeria Complied with Ipieca 2015 Guidelines on Voluntary Disclosure?

Abdulsalam Nasiru, Kaoje (Ph.D)¹, Abubakar Sabo, Yabo(Ph.D)², Ruqaiyat Mohammed, Kaoje (Ph.D)³

¹Department of Accounting, Usmanu Danfodiyo University, Sokoto, Nigeria
²Department of Business Administration, Usmanu Danfodiyo University, Sokoto, Nigeria
³Department of Business Administration, Federal University, Birnin Kebbio, Nigeria

Abstract:-This paper used Content Analysis designed to provide an insight into the trend and variability in Sustainability Information Disclosure (SID) of oil marketing companies in Nigeria. The paper also examine whether Oil Marketing Companies disclosure practice conformed to the IPIECA, 2015 guidelines on voluntary sustainability information disclosure. A total of Eight (8) Oil Marketing Companies are used, using census, covering eleven year period (2003-2013). Secondary data was adopted from three sources (NSE factbook, IPIECA 2015 guidelines and NNPC Statistical Bulletin. An unweighted approach for disclosure scoring was adopted, using binary numbers, where one (1) was used as reported item of disclosure and zero (0) as item of disclosure not reported. The findings of this paper revealed that Oil Marketing Companies in Nigeria do not comply with the IPIECA 2015 on voluntary disclosure. The paper recommends that Nigerian stock exchange should make it compulsory, that oil marketing companies in Nigeria to comply with the provision of disclosure practices of IPIECA, 2015 on voluntary sustainability disclosure by setting up a unique regulatory section within the SEC, that will be saddled with the responsibility of collecting and collating sustainability information related data and constructing the relevant indices to facilitate SID by OMC’s in Nigeria.

Keywords: Sustainability reporting, Content Analysis and Oil marketing companies.

I. INTRODUCTION

Companies are under increased pressure from pressure groups, consumer groups and governments to give more attention to social issues and more consideration to the impact, their activities have on society. Oil Marketing Companiesin Nigeria are thus faced with the challenge of performing a ‘balancing act’ between giving more consideration to social issues while still meeting their financial business objectives. Conventional reporting, though, a suitable mechanism for evaluating the financial and economic performance of organizations and assist companies in making decisions offer limitations as it focuses on accounting information and is designed for economic investors (Schaltegger, Bennett & Burritt, 2006).

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