The COP26 framework focuses on energy transformation and green governance (GG) as its central priorities. This paper critically evaluated the examination of green governance in the context of Nigerian oil and gas companies, exploring its implications on financial performance (FP) measures. Recent years have presented significant hurdles for companies in the energy sector because of the high expense of ecological remediation following spills and the use of conventional systems of operation. The study collected primary data using a well-structured questionnaire. The researchers employed a systematic approach to select fifteen (15) oil and gas companies for inquiry, utilizing a rigorous random sampling method. Subsequently, three executives from the management, accounting, and auditing departments participated based on predetermined criteria. Utilizing direct linear regression analysis, the study explored the relationship between GG and FP. "The regression analysis showed a coefficient for green governance (GG) of 0.391 with p = 0.004."), signifying a statistically significant correlation. The correlation coefficient (R = 0.413) suggests a substantive association between GG and FP, with 17% of FP variance explained by GG (R2 = 0.170). Hypothesis testing via the F-test demonstrates a positive, significant relationship (F = 9.236, p < 0.001) between GG and FP, this suggests that there is a strong and meaningful correlation between GG and FP. The findings of this research can provide significant direction for policymakers in developing relevant legislation, at the same time, industry practitioners can leverage these findings to optimize their operational strategies and augment their organizations' financial performance.
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