ENVIRONMENTAL, SOCIAL AND GOVERNANCE ON FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA

The study investigated the effects of Environmental, Social, and Governance (ESG) disclosures on the financial performance of listed industrial goods firms in Nigeria between 2012-2023. Financial performance was measured using return on assets (ROA), with earnings per share (EPS) as a control variable. The research adopts a longitudinal design, utilizing secondary data obtained from the annual reports of 12 manufacturing firms in Nigeria. These firms are drawn from various sectors, including industrial goods, consumer goods, agriculture, and the oil and gas sectors.  The main results, based on ordinary least squares (OLS) regression and robust regression, are as follows:Environmental Disclosure: The analysis showed a positive but insignificant impact on financial performance (ROA) with a coefficient of 3.050 (p-value = 0.177). Social Disclosure: Social disclosure had a significant negative effect on financial performance (ROA) with a coefficient of -13.228 (p-value = 0.000). Governance Disclosure: Governance disclosure demonstrated a negative but insignificant impact on financial performance (ROA) with a coefficient of -4.290 (p-value = 0.186). The findings suggest that while Nigerian firms are becoming more aware of the importance of ESG, there is still much work to be done to align governance practices with international standards. The study also indicates that firms adopting comprehensive ESG strategies not only improve their financial health but also position themselves favorably with foreign investors and regulatory bodies. The research concludes that ESG practices are crucial for enhancing the financial performance of manufacturing firms in Nigeria. By adopting environmentally friendly practices, engaging in responsible social behavior, and implementing strong governance frameworks, firms can achieve sustainable financial success.