Abstract:
This work examined the extent to which Accounting practices affect
theprofitability of Oil and Gas companies in Nigeria, particularly those in the
upstream sector. The Researchers used Stratified Sampling Design approach.
The target population comprised of Oil and Gas Companies in Nigeria. A
total of 84 respondents were drawn from the population. Both primary and
secondary data were used in the study. Primary Data were collected using
questionnaires drawn using the Likert’s Scale with five points ranging from
very great extent to no extent, while secondary data were sourced from already
published materials. Hypotheses were formulated and data were analyzed
using SPSS Software and other Descriptive statistical tools such as; percentages
and tables. The result of the study showed that accounting practices had a
significant relationship with performance of Oil and Gas Companies,
particularly, the Return on Assets and Return on Capital Employed. It was
recommended that proper and best accounting practices should be adopted
by Oil and Gas companies to ensure better performance on one hand and fair,
transparent and reliable financial reports on the other hand.
