ABSTRACT:- Corporate environmental performance and community engagement are prominent issues in the extractive sector especially in the extractive industries and downstream oil and gas sector due to the extent of environmental damage caused by their operations.  This study assesses the effect of corporate environmental performance and community engagement on the financial performance of listed extractive industries and downstream oil and Gas firms in Nigeria. This study built on the ex post facto research design and focused on a period spanning from 2012 to 2023. The study population and sample include 4 extractive industries firms and 8 listed downstream oil and gas firms in Nigeria.  The study employed the use of corporate environmental performance costs as well as community engagement costs as proxies. The study employed the use of return on assets as a proxy for measuring financial performance. The study employed descriptive statistics, correlation analysis, variance inflation factors, Hausman specification tests, and random effect regression tests as tools for statistical analysis. The study found that both corporate environmental performance costs and community engagement costs were not significant in affecting the return on assets of sample firms. This study concluded that corporate environmental performance cost was not significant in affecting the financial performance of listed Nigerian extractive industries and downstream oil and gas firms. The study recommends more transparency in disclosing corporate environmental performance costs and Community engagement costs in the financial statements of quoted natural resources industry and downstream Oil and Gas firms.

Keywords:- Corporate environmental performance Costs, community engagement costs