JOURNAL OF BUSINESS PRACTISE, ECONOMICS AND FINANCE

Abstract

This study investigated the relationship between employee cost and financial performance of listed oil and gas companies in Nigeria, guided by three specific objectives, three research questions, and three hypotheses. Adopting an ex-post facto design, the research uses historical data from annual reports and financial statements. The population comprises nine (9) companies listed on the Nigerian Exchange Group (NGX) as of December 31, 2023, with a purposive sample of seven (7) firms selected based on criteria such as the availability of up-to-date financial reports for the period 2014-2023. Secondary data were analyzed using descriptive statistics, Pearson’s Product Moment Correlation Coefficient (PPMC), and moderated multiple regression (MMR) analysis. The findings indicated a significant positive significant relationship between employee cost and financial performance, with firm size acting as a moderating variable. The study concluded that strategic investment in employee benefits enhances financial performance. The study further suggested that Companies should optimize retirement benefits to balance profitability and asset efficiency; Implement cost-control strategies for health insurance benefits to minimize adverse impacts on profitability.