Impact of Environmental Cost on Productivity of Oil and Gas Industry in Nigeria

Inyiama Oliver Ike; Nduche Ekene Chinyelu

doi:10.5281/zenodo.7480387

Impact of Environmental Cost on Productivity of Oil and Gas Industry in Nigeria

Authors: Inyiama Oliver Ike, Nduche Ekene Chinyelu

Journal: International Journal of Advanced Economics and Sustainable Development (IJAESD), ISSN 2766-2659

Citation: IJAESD 3(3), 2022-12-20.

DOI: 10.5281/zenodo.7480387

PDF: Download full-text PDF

Type: Original Research

Abstract

This study examined Impact of Environmental Cost on productivity of oil and gas industry in Nigeria. Four (4) oil and gas business- firms quoted on the Nigeria Stock Exchange were strategically selected for the study. The proxy for the dependent variable is cost of sales of oil while the independent variables are donations to orphanage and foundation, staff welfare packages and donation for community welfare. Ordinary Least Square Regression Analysis was employed to analyze the data collected from the sampled oil and gas firms during the period. The study found out that Donations to Orphanage and Foundations (DOF), Staff Welfare Package (SWP) and Donations for Community Welfare (DCW) have positive and significant impact on Cost of Sales of oil and gas business-firms in Nigeria. It was confirmed that Oil and gas firms operating in Nigeria should regularly donate to orphanage and foundations; design appropriate staff package and welfare scheme which will ensure that staff of the firms are properly remunerated make donations for community welfare such as donations for infrastructural development, scholarship and bursary awards, skill acquisition among others to promote a amicable relationship between the firms and the host communities.

Keywords

Environmental Cost, Productivity of Oil and Gas Industry

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