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This research paper investigated the effect of environmental accounting on the economic development of Nigeria. The data were carefully collected from secondary sources and they were primarily used for content analysis. These were applied to the annual reports of five manufacturing companies to ascertain the level of compliance and costs associated with accounting for their environmental activities. The multiple regression analysis was used to analyze the collected data. The findings indicate that Environmental Protection Costs, Environmental Management Costs and Environmental Research and Development Costs all have a considerable effect on the gross domestic product of Nigeria. No effects, however, were exhibited by these variables which were statistically significant. These imply that environmental accountings as enumerated above do not significantly affect economic development in Nigeria. Thus, environmental accounting as practiced by companies in Nigeria does not play an important role in advancing the Nigerian economy. This is largely because of the fact that companies flout environmental laws in the country with impunity. These companies are aided by corrupt government officials. Government should, therefore, enhance the implementation of environmental laws in the country to make it more difficult for business organizations to avoid/evade their environmental responsibilities.