MANAGEMENT ACCOUNTING PRACTICES AS CATALYSTS FOR STRATEGIC DECISION-MAKING AND SUSTAINABILITY IN THE OIL AND GAS SECTOR

Abstract

This study investigates the role of Management Accounting Practices (MAPs) as catalysts for strategic decision-making and sustainability performance in the Nigerian oil and gas sector. Despite the sector’s major contribution to GDP and government revenues, it faces volatility, environmental concerns, and rising pressure for sustainability adoption. A descriptive survey research design was employed, targeting management accountants, financial managers, and sustainability officers in ten listed firms. Data from 150 purposively selected respondents were analyzed using SPSS and EViews. Reliability analysis confirmed internal consistency (Cronbach’s α = .84). Regression results showed that MAPs significantly influenced both strategic decision-making (β = .62, p < .001) and sustainability performance (β = .57, p < .001). Disaggregated analysis revealed that contemporary MAPs—such as environmental management accounting, balanced scorecards, and integrated reporting—had stronger predictive effects on sustainability outcomes (β = .71, p < .001) than traditional tools like budgeting and variance analysis (β = .29, p > .05). Respondents identified barriers to sustainability-focused MAPs, including inadequate expertise, high costs, resistance to change, and short-term profit orientation. The findings underscore the importance of MAPs in integrating financial, environmental, and social dimensions into corporate strategy, thereby enhancing accountability and resilience. The study concludes that wider adoption of contemporary MAPs can provide Nigerian oil and gas firms with competitive advantage, transparency, and alignment with global sustainability frameworks. It recommends investment in capacity building, supportive policies, and organizational reforms to overcome implementation barriers and foster long-term value creation.