This study was based on the level of information asymmetry in environmental accounting practice in Nigeria. This study was necessary on the grounds of providing solution to the green house effect from the accountant's perspective. Two big oil prospecting firms were studied and primary data was collected with a questionnaire and data was analysed with SPSS, the results revealed that information asymmetry has a correlation with lack of full disclosure of financial statements, objectivity of financial statement and lack of value disclosure of negative economic externalities. The study recommended that, Governments at both the Federal and State levels should put up strong legislations on disclosure of environmental externalities in the financial statements again IFRS should come up with standards on environmental accounting with special reference to disclosure of negative externalities