Research Purpose: In the dynamic landscape of Nigeria's oil and gas sector, this study investigates how reward packages influence the profitability of listed firms. With the industry's pivotal role in the nation's economy, understanding these dynamics is crucial for strategic decision-making.
Methodology: Employing an ex-post facto approach, the study spans 2011 to 2022. Descriptive statistics analyse data distribution, while panel least squares regressions test formulated hypotheses, ensuring robust analysis.
Findings: Salaries and wages, pension contributions, and gratuity affect the profitability of Nigerian oil and gas firms negatively but insignificantly. These findings underscore the need for a nuanced approach to reward policies to optimise performance.
Conclusion: The study concludes that the analysed components of reward packages do not significantly impact the profitability of listed oil and gas firms in Nigeria. However, strategic adjustments in reward policies may enhance overall performance and financial outcomes.
Recommendations: To improve profitability, Nigerian oil and gas firms should consider making salaries, wages, pension contributions, gratuity, and long service awards compulsory components of their reward policies. This strategic move aims to align incentives with performance, fostering maximum efficiency and sustainable growth.
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