Corporate Sustainability Performance and Tax Avoidance: Evidence from Listed Oil and Gas Companies in Nigeria
Tax avoidance remains a persistent concern within Nigeria’s oil and gas industry, where firms often present strong sustainability disclosures alongside questionable fiscal behavior. This study investigated the effect of corporate sustainability performance, measured through environmental, social, and governance (ESG) dimensions, on tax avoidance among six listed oil and gas companies in Nigeria from 2015 to 2024. Using an ex-post facto research design, secondary data was obtained from annual reports and sustainability disclosures. The study employed descriptive statistics, correlation matrix, diagnostic tests (normality, multicollinearity, Hausman), and panel regression. The regression results revealed that environmental performance (ENP) had a significant negative effect on tax avoidance, implying that environmentally responsible firms are less likely to engage in aggressive tax behavior. Social performance (SOP) also showed a significant negative effect, indicating that firms with stronger social engagement demonstrate higher fiscal discipline. Governance performance (GOP) similarly exhibited a significant negative effect, suggesting that effective governance mechanisms enhance tax compliance. The model recorded an R² of 0.621, indicating that 62.1% of variations in tax avoidance are explained by sustainability performance indicators. The study concludes that improved sustainability practices strengthen corporate ethics and recommends enforcing environmental accountability, promoting genuine social investments, and enhancing governance oversight to curb tax avoidance in Nigeria’s oil and gas sector. Keywords: Corporate sustainability performance, environmental performance, social performance, governance performance, tax avoidance.
Keywords: Corporate Sustainability Performance, Environmental Performance, Social Performance, Governance Performance, Tax Avoidance, Oil and Gas, Nigeria.
Citation: Kabir, Y.I. & Abdulkarim, U.F. (2026). Corporate Sustainability Performance and Tax Avoidance: Evidence from Listed Oil and Gas Companies in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 11(2), 89-99.