This paper is focused on the Midstream and Downstream segments of the Nigerian oil and gas industry. The study emerged as a result of the dearth in Nigeria specific research on Financial Accounting issues involved in the midstream and downstream segments of the oil and gas industry. Some of such issues include revenue recognition and emissions and trading schemes. Bearing in mind the current trend in Financial Reporting, the International Financial Reporting Standards (IFRS) is the reporting framework of this paper. The inadequacies in Financial Reporting, such as improper disclosures of reserves in the financial statements of oil and gas companies, were highlighted and also the issue of harmful carbon emission rates was also discussed, and solutions proffered include mandatory disclosure of reserves in the financial statements or supplementary financial information, and proper legislation by the government to curb the high carbon emission rates through fines and other strict penalties.