Oil In Nigeria Research Articles

Discretionary Accruals Earning Management on Performance of Nigerian Listed Oil and Gas Companies

This study determines the impact of discretionary accruals earning management on the financial performance of listed oil and gas companies in Nigeria. The study used panel data obtained from the annual reports and accounts of listed oil and Gas companies for a period of ten years (2013-2022). The dependent variable of the study is financial performance measured by return on assets (ROA), with leverage and liquidity as control variables. Panel regression was used to explore the effect and association of the dependent variable and two control variables (LEV and LIQ) with the independent variable discretionary accruals earnings management (DAEM), which were regressed using the EViews version 12 statistical package. The results obtained indicated the presence of earning management practices among the oil and gas managers. The managers manipulate the companies’ data in order to earn selfishly. The paper finally brings to the fore the modalities that the affected companies can take in order to stop the menace.

Determinants of Dividend Policy: Empirical Evidence From Listed Oil and Gas Firms in Nigeria

This research initiative intrisically examined determinants of dividend policy amongsts listed oil and gas firms in Nigeria. Specifically, the paper examined the dynamic interactions: past dividend payout (DP (-1)), profitability (PROF), growth opportunities (GRO), leverage (LEV), liquidity (LIQ), firm size (FS), tax policy (TAP) and ownership structure (OS) have on dividend payout (DP). To achieve these specific objectives, the paper sourced data from ten sampled firms from 2007 to 2022, adopting the dividend relevance and irrelevance theories. In terms of methodology, the research adopted the Extended System Generalized Method of Moments (GMM) estimation technique. The research confirmed that past dividend payout, profitability, liquidity, growth opportunity and ownership structure are major positive drivers of dividend payout while higher tax policy and leverage reduce dividend payout. However, firm size has a minimal effect on dividend payout. Consequent upon the various discerned outcomes, the conclusion drawn is that, past dividend payout, profitability, leverage, growth opportunity, liquidity, tax policy and ownership structure. Thus, the research submits that while policy makers of sampled firms are developing their dividend payout model, they should factor in past dividend payment into the model. Again, the regulators guiding oil and gas firms in Nigeria must insist that sampled firms adhere with the legal restriction on the maximum dividend firms should pay when they declare huge profit. Also, they must as a matter of prominence, insist that the sampled firms pay out dividend from accumulated net profits realized without necessarily disrupting future development goals of the sampled firm.

The Roles of Ownership Structure on Carbon Emission Disclosure Quality of the Listed Oil and Gas Companies in Nigeria

This study investigates how and the extent to which different forms of ownership (foreign, managerial, diluted, concentrated and institutional) influences carbon emission disclosure quality as shown in the levels of the voluntary carbon emission related disclosures in the stand-alone sustainability report of the listed oil and gas companies in Nigeria. Hence, we complement the three leading streams of research on the determinants of carbon emission disclosure quality. We analyzed the research objective using data from the 22 listed oil and gas companies in Nigeria since they are the dominant greenhouse gas emitters globally and show higher commitment to pursuing companies and industrial actions in communicating environmental related information with the external stakeholders, that may reflect attitudinal changes and product sensitive innovations to reducing emission of carbon, carbon management, and targets. Using an ordered logistic regression analysis, we found several important results. First, the findings revealed that firms with greater proportion of foreign ownership exhibit higher carbon emissions disclosure quality, which suggest that the type of ownership correspond with firm’s proactiveness and commitment to environmental practices in the selected companies. Second, institutional ownership in negatively correlated with carbon emission disclosure quality, providing an implication that when institutions invest heavily in a company, they favor weak carbon related disclosure because it enables them to exploit minority shareholders. Third, we observed a negative correlation between ownership concentration and carbon emission disclosure, which indicates that controlling shareholders in form of institutional ownership may be prone to monopolizing carbon emission information to maintain superiority in monitoring and decision-making process.

Environmental Accounting Costs and Financial Performance of Oil and Gas Companies in Nigeria: Interplay of Resource-Based-View, Stakeholder and Legitimacy Theories

Environmental Accounting Costs and Financial Performance of Oil and Gas Companies in Nigeria: Interplay of Resource-Based-View, Stakeholder and Legitimacy Theories

Corporate Performance and Accounting Control Practice: A Comprehensive Analysis of Listed Oil and Gas Companies in Nigeria

Corporate Performance and Accounting Control Practice: A Comprehensive Analysis of Listed Oil and Gas Companies in Nigeria

The Effectiveness of Palm Oil Policies in Nigeria: An Experience from Malaysian Palm Oil Policies

The tropical forest of West Africa is initially the first area where the oil palm was discovered before the 14th century. In particular, Nigeria was one of the places where this fruit was uncovered. Palm oil is ranked as the major vegetable oil in the world. In the 1960s, Nigeria was rated as the largest palm oil-producing and exporting country globally. However, the production was completely unsuccessful as a result of the government’s failure to formulate good policies, while the local consumption increases. Oil palm production in Malaysia became a contributing sector to the national economy. It alleviates poverty, provides employment, allocates resources, generates incomes, and leads to economic development. Due to good and sustainable palm oil policies in this sector, Malaysia achieved global recognition. This paper’s objective is to disclose the ineffective policies on palm oil in Nigeria and its sustainability in Malaysia. This paper is a qualitative design, it used primary and secondary methods. The primary method is based on a semi-structured interview, while the secondary method is based on documents. It adopted inductive thematic analysis for analysing interview data with the help of Atlas ti. This paper’s finding is the unsuccessful palm oil policies in Nigeria and the sustainable palm oil policies in Malaysia.In conclusion, there is a need for Nigeria, to learn from the Malaysian experience.

Strategic Resource Management and Workforce Training and Development of Indigenous Oil and Gas Service Firms in Nigeria

Purpose: The study aimed to examine the influence of strategic resource management on workforce training and development of indigenous oil and gas service firms in Nigeria. Methodology: The study which adopted survey research design at the organisational unit of analysis used a self-developed five-point Likert scale questionnaire as instrument of primary data collection from management level respondents. The population of the study was 1827 indigenous oil and gas service firms in four randomly selected South-South States of Nigeria with sample size of 328 determined with Taro Yamane’s formula and proportionally allocated with Bowley’s formula. The scale of measurement reliability was determined with Cronbach’s Alpha and its construct validity tests were with Pearson’s r, Kaiser-Meyer-Olkin (KMO) measure of sample adequacy and Bartlett’s Test of Sphericity. The collected data were analysed using descriptive and inferential statistics in Microsoft Excel Software Package version 2016 and IBM Statistical Package for the Social Sciences (SPSS) version 29 software application tools respectively and the research hypothesis tested with simple regression analytical techniques. Results: The results of regression analysis showed that strategic resource management significantly and positively influenced workforce training and development of indigenous oil and gas service firms in Nigeria. Therefore, the study concludes that strategic resource management has significant and positive influence on workforce training and development of indigenous oil and gas service firms in Nigeria. Unique contribution to theory, policy and practice: Based on the results, the study recommended that owners/managers of indigenous oil and gas service firms in Nigeria and other parts of world should continuously invest in their strategic resource management capabilities with special attention to human capacity development in technical skills and talent acquisitions and retention.

Effect of Firm Attributes on Financial Reporting Timeliness of Quoted Oil and Gas Companies in Nigeria

Published information may lose its relevance if there is undue delay in it being reported. However, around the world, delay in the auditing of financial statements have been identified as leading to an overall delay in their publication. The study investigates the effect of firm attributes on financial reporting timeliness of the eleven (11) listed oil and gas firms on the Nigerian Stock Exchange for the period 2011 to 2020. Sample of eight (8) companies were selected using purposive sampling technique after applying a single filter. The study used Ex-post facto research design. The variables considered were firm age, firm size, leverage and profitability. Financial Reporting timeliness was measured using audit report lag. Panel data were collected from the annual reports and accounts of the selected firms. The multiple regression analysis technique was used to analyse the data. The result of the study indicates that firm age, firm size and profitability significantly affect financial reporting timeliness while leverage does not influence financial reporting timeliness. Therefore, the study concludes that firm attributes especially firm age and profitability are good predictors of financial reporting timeliness. The study recommends that firms should grow their assets, strive to make profit and incur less debt as these factors are very important for investment and other decision purposes by the users of the information.

Exploring the nexus between risk perception, driving tasks perception, and road safety attitudes among oil and gas tanker drivers

Road accidents globally have an 18 % fatality rate per 100,000 population, with significant regional variations, particularly affecting Africa. The increasing frequency of oil and gas tanker accidents in Nigeria exemplifies this trend, highlighting the need to explore the relationship between risk perception, driving task perception, and road safety attitudes among Nigerian oil and gas tanker drivers. This study utilised a sample of 375 drivers, with 311 valid questionnaires analysed, reflecting consistent and comprehensive responses. Exploratory factor analysis identified three key factors, with factor loadings ranging from 0.580 to 0.915. In contrast, while confirmatory factor analysis validated these constructs χ2/df = 1.285, CFI = 0.996, TLI = 0.971, NFI = 0.984, GFI = 0.995, AGFI = 0.949, RMSEA = 0.048, and SRMR = 0.040. Structural equation modelling further assessed the relationships between drivers’ risk perception, driving task perception, and road safety attitudes, revealing a positive correlation between Risk Perception and Road Safety Attitude (β = 0.611, p < 0.05). There is a positive correlation between Risk Perception and Road Safety Attitude (β = 0.611, p < 0.05) and a positive correlation between Non-Driving Activities impacting road safety (β = 0.145, p < 0.05). The study found that mid-career drivers, particularly those with limited educational backgrounds, demonstrated specific attitudes and behaviours related to road safety. These findings underscore the need for targeted interventions that address risk perception and driving tasks to improve safety attitudes. Recommendations include tailored training programs for different age groups and experience levels, awareness campaigns to enhance adherence to traffic rules, and continuous monitoring of risk perception and road conditions to facilitate adaptive safety interventions.

Effect of Non Disclosure of Environmental Cost on Finan-cial Performance of Selected Oil and Gas Firms In Nigeria

InNigeria,disclosureofenvironmentalaccountinginformationinannualreportofcompaniesisvoluntaryasthere are no accounting standards or regulatory and statutory guidelines that mandates such disclosures, companies adopt disclosure as a result of good industrial practice, pressure from environmental activist and advocates and relationshipwithparentcompany.ThisstudyanalyzedenvironmentalaccountingdisclosurespracticesofNigerian oil and gasfirmswith the attendant disparity of disclosed information as a result of non-availability of either local or international standards to guide disclosure.A sample of 8 out of 14 oil and gascompanies operating in Nige-ria and listed in the NSE were selected for this research. Content analysis was used to obtain data from pub-lished annual reports from the selected firms.The data obtained were analyzed using one way analysis of vari-ance to test the hypothesis. It was discovered that accounting standards do significantly influence environmental accounting disclosures; the non-existence of issued guideline leads to lack of uniformity in disclosure and varia-tions obtained in testing the hypothesis. It is recommendedthat guideline should be issued on Green Accounting disclosures, in linewith United Nations guideline of 2005 and the UN resolution of 2015 on Sustainable Devel-opmentGoals (SDGs). Equally,companiesshould bemandatedtodisclose sensitiveinformationabouttheiroperations, itwouldbeproperifthe Nigerianaccountingboard and othersettingbodiescomesupwithauniformstandardonhow companies should disclose their environmental accountinginformation.

Unitization in the oil and gas industry in Nigeria: Challenges, benefits, and regulatory framework

Unitization is an essential strategy for Nigeria's crucial oil and gas sector, aimed at collaboratively managing hydrocarbon reservoirs across various leases. This study delves into its complexities, including challenges like ownership conflicts and technical issues, alongside benefits such as enhanced resource recovery and shared technology. Despite these obstacles, unitization promises improved efficiency and sustainable development by fostering cooperation, reducing waste, and promoting responsible extraction practices. The research highlights the necessity of a robust regulatory framework, clear communication, and stakeholder collaboration for unitization to succeed. It concludes that by embracing unitization, Nigeria can advance its energy industry sustainably, aligning with national objectives and ensuring economic and environmental benefits.

Institutional and Regulatory Compliance Gaps in Natural Resource Governance: Empirical Evidence and Lessons from the Nigeria Oil and Gas Industry

Institutional governance has traditionally been frequently undermined by developing countries, but this behaviour has immensely impacted economic growth and development outcome with long term implications. More fundamentally, the Nigeria oil and gas industry governance are beset with various challenges including regulatory compliance, monitoring capacity, enforcement mechanism, politics and very frequently plagued with blame games. Consequently, the study conducted primary and secondary data to problematized gaps in institutional governance from the standpoint of development discourse to establish a convergence of evidences within the context of the quality of state institutions that unarguably reflects the Nigeria scenario. Institutional and regulatory compliance gaps permeate the gamut of the oil and gas industry so resolutely in the global South like Nigeria, orchestrated by the political elites who are so perverse, rent seeking, inept and greed driven with no clear sense of patriotism compare to the global North like Norway that is more effective and nationalistic. The findings of the study highlight weaknesses in policy framework, corrupt practices, poor contract management, compromised professional integrity, inadequate funding, poor contract management and systemic gap in revenue management as a consequence of gaps in natural resources governance in the oil and gas industry in Nigeria. It explains this on the basis of existing mechanisms and empirical evidences. These evidently exemplify that Nigeria has struggled for several decades from lethargic institutional and regulatory compliance capacity as the presence of oil and gas does not translate or appear to systematically support development outcome in many developing countries.

Environmental Cost Disclosure and Financial Performance of Oil and Gas Firms

General Background: The relationship between environmental cost disclosure and financial performance is essential in environmentally impactful sectors like oil and gas. Specific Background: This study focuses on listed oil and gas firms in Nigeria, examining health and safety costs and waste management costs as predictors of return on assets (ROA). Knowledge Gap: Existing research shows inconsistent findings on the effects of environmental disclosures on financial performance, necessitating further investigation. Aims: This study aims to clarify the impact of environmental cost disclosures on financial performance, particularly through health and safety and waste management costs. Results: Using ex-post-facto research design and secondary data analysis, the findings reveal a significant positive relationship between environmental cost disclosures and financial performance, highlighting the importance of these costs on ROA. Novelty: By applying legitimacy theory and focusing on specific environmental costs, this research fills a gap in Nigerian literature. Implications: The study recommends enhanced environmental policies for oil and gas firms, promoting accountability and aligning financial performance with ecological responsibilities. Highlights: Significant positive relationship exists between environmental cost disclosures and financial performance (ROA) in Nigerian oil and gas firms. Health and safety costs and waste management costs are critical predictors of financial performance. The study emphasizes the need for enhanced environmental policies and corporate accountability in the oil and gas sector. Keywords: Health, Safety Cost, Waste Management Cost, ROA

Implication Of Environmental Related Cost On Performance Of Oil And Gas Companies In Nigeria

The study examined the implication of environmental cost on performance of oil and gas companies in Nigeria. The objectives of the study are to examine whether environmental cost affects return on capital employed and market value added of oil and gas companies in Nigeria. Data for this study were retrieved from reports of the companies from 2013-2017 financial years and values for the qualitative data such as environmental regulatory cost (ERC) and environmental health and safety cost (EHSC) were measured using dichotomy procedures. Values were assigned from 0-5 based on the level of disclosure using global reporting index (GRI). Having examine the content of the financial report of the companies, the analytical technique used for this study was the panel regression method. The research results indicate that there exists a relationship between environmental cost and profitability of oil and gas companies in Nigeria. The study therefore recommended amongst others that Oil and gas companies should focus reasonable attention to addressing relevant environmental issues and cost involvement disclosed in their financial report for the purpose of profit measurement.

A legal and regulatory compliance framework for maritime operations in Nigerian oil companies

The maritime sector plays a critical role in Nigeria's oil industry, serving as the primary conduit for offshore oil exploration, production, and transportation. As the country remains heavily reliant on its oil revenues, ensuring that maritime operations comply with legal and regulatory standards is crucial for operational safety, environmental sustainability, and economic stability. This review outlines a comprehensive legal and regulatory compliance framework for maritime operations in Nigerian oil companies, focusing on the roles of key regulatory bodies such as the Department of Petroleum Resources (DPR), the Nigerian Maritime Administration and Safety Agency (NIMASA), and the National Environmental Standards and Regulations Enforcement Agency (NESREA). It explores major laws such as the Coastal and Inland Shipping (Cabotage) Act, Petroleum Industry Act (PIA), and Environmental Impact Assessment (EIA) Act, highlighting their implications for offshore drilling, oil transportation, and environmental protection. Additionally, the review discusses the compliance challenges Nigerian oil companies face, including environmental risks, maritime security threats, jurisdictional conflicts, and the technical demands of adhering to safety standards. To address these challenges, the study emphasizes the need for regular audits, technology integration, capacity building, and collaborative engagements between oil companies and regulatory authorities. Through case studies on oil spill response and the enforcement of cabotage laws, the review underscores the importance of robust regulatory enforcement to ensure safety, mitigate environmental damage, and enhance operational efficiency. This framework is essential for the future growth of Nigeria’s oil sector, balancing economic gains with legal compliance and sustainability in maritime operations.

GREEN ACCOUNTING AND FINANCIAL PERFORMANCE IN NIGERIAN INDUSTRIES: A STUDY OF SELECTED OIL AND GAS FIRMS IN NIGERIA

This study investigated the effect of Green Accounting on the financial performance of selected oil and gas firms in Nigeria. The specific objectives of the study were to: investigate the effect of emission control cost, the effect of renewable energy cost, and the effect of pollution remediation costs control on the financial performance of selected oil and gas firms in Nigeria. The study adopted ex post facto research design and the panel least squares regression technique. The study found that: emission control cost with coefficient (421.2015) and p-value (0.0022) has significant positive effect on the return on capital of selected listed oil and gas firms in Nigeria; pollution control cost with Coefficient of 2.018446 and p-value of 0.0000, has positive significant effect on the return on capital of selected listed oil and gas firms in Nigeria and that renewable cost energy with coefficient (80.40683) and p-value (0.0056) has significant positive effect on the return on capital of selected listed oil and gas firms in Nigeria. The study concluded that Green accounting has significant positive effect on the financial performance of selected oil and gas firms in Nigeria. Based on the findings of the study, the following recommendations were put forward: the oil and gas firms should prioritize Green Accounting as a significant component of their management process, the firms should adopt management practice, and as well adopt the pollution remediation, emission control and renewable energy control costs accounting in their production accounting model.

SUSTAINABILITY DISCLOSURES AND PROFITABILITY OF LISTED OIL AND GAS FIRMS IN NIGERIA

This study examined the effect of pillars of sustainability disclosure on profitability (return on asset) of oil and gas firms in Nigeria. The specific objectives of the study were: to examine the effect of social, economic and environmental pillars of sustainability disclosures on return on assets of Oil and Gas firms in Nigeria. The population of the study was made up of all the manufacturing Oil &amp; Gas firms listed in Nigerian Exchange Group, while Con-oil, Forte Oil, Capital Oil, Total Nigeria and MRS oil Nigeria were selected. The statistical tool used was multiple regression analysis, and the findings revealed that social, economic and environmental pillars of sustainability disclosures have no significant effect on Return on Assets (ROA) of Oil and Gas firms in Nigeria. The study recommended that Oil &amp; Gas manufacturing firms should ensure that they report their social, economic and environmental activities in order to enhance their performance level and compete favorably in Oil sector. This will also enable all the stakeholders appreciate firms’ annual report and put reliance on the published financial statements in their investment decisions. When a firm enjoys legitimacy, the performance of the organization will be improved significantly. The study also recommended that there should be standardized Sustainability Index for ranking firms’ reportage in order for the firms to adhere strictly to voluntary and mandatory disclosures.

Fuel Subsidy and Education Sector Financing in Nigeria: A Short-run Adjustment to Equilibrium Approach

This study examined the impact of fuel subsidy on education sector financing in Nigeria from 1990 through 2023. Annual data were obtained from the Nigeria Petroleum Corporation and World Development Indicators, (WDI) on variables such as fuel subsidy, government expenditure on education sector, Oil Revenue, pump price of Premium Motor Spirit and secondary school enrolment in Nigeria. A bound cointegration test and ECM were employed. Granger test for causality was also used to ascertain the direction of causation in the series. The estimated error correction term, ECT (-1) is significant. There is no causal relationship from fuel subsidy to education sector financing. However, education sector financing granger causes fuel subsidy. Premium Motor Spirit and education sector financing were found to granger-cause each other. The study recommends that government should ensure that fuel subsidy is not allowed to deprive education of its fair share of government spending, given that current spending on the sector has been established to have implication for the sectors growth in the future years.

BOARD INDEPENDENCE AND FINANCIAL REPORTING QUALITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA MODERATED BY FIRM SIZE

In the dynamic landscape of corporate governance, the interplay between board characteristics and financial reporting quality stands as a focal point for scholarly investigation. This study investigates the moderating effect of firm size on the relationship between board independence and financial reporting quality of listed oil and gas companies in Nigeria. The study employs a quantitative research design and the populations of the study were all the oil and gas companies listed on the floor of Nigerian Exchange Group from 2012 to 2021. The study used ten (10) oil and gas companies as the population and sample size. The study further used panel regression technique as method for data analysis. The result of the direct relationship revealed that board independence and board size negatively and significantly influence the financial reporting quality of listed oil and gas companies in Nigeria. In the case of moderated effect, the results indicate that firm size does not significantly moderate the influence of board independence on the financial reporting quality of listed oil and gas companies in Nigeria. Based on the results obtained, it can be concluded that the interaction between firm size and board independence does not have a significant impact on the financial reporting quality of listed oil and gas companies in Nigeria. Based on the findings, the study recommended that policymakers such as financial reporting council and Securities and Exchange Commission should enforce the code of corporate governance that will provide for mandatory independent directors with financial expertise. Secondly, the firm size should be properly put into consideration in constituting the number of non-executive directors on the board of directors of listed oil and gas companies in Nigeria.

Performance Improvement of Industrial Gas Turbine for Power Augmentation in the Nigeria Oil and Gas Sector

This paper provides a comprehensive overview of the electricity supply situation in Nigeria, focusing specifically on enhancing the performance of industrial gas turbines, GE GT13E2 (Afam Power Plant owned by FIPL) in Port Harcourt. The study encompasses two primary aspects. Firstly, it involves an examination of the nominal operating conditions of a combined cycle system and explores their dynamic performance through advanced simulations. Secondly, the research introduces a supplementary burner into the combined system and conducts a comparative analysis, considering factors such as system efficiency and power output. The power plant configurations are simulated using Gasturb14. The analysis is carried out by establishing the maximum attainable temperature in the Heat Recovery Steam Generator (HRSG), which determines the number of stages of supplementary firing that can be implemented. The results presented in this paper unveil the substantial potential for power generation with the addition of supplementary burners, indicating a remarkable increase in power output, yielding approximately 187.444 MW. However, this significant boost in power generation comes with an associated trade-off, wherein the overall system efficiency experiences a reduction. From an economic perspective, the additional power generated by the afterburner translates directly into increased revenue from electricity sales. Considering the average residential electricity rate in the U.S. as of February 2023, the calculated additional revenue from the afterburner amounted to approximately $25,641.58 per hour.