Corporate Governance and Financial Performance of Nigerian National Petroleum Company Limited.

Oluwatosin C. Fasusi; Olalekan O. Akinrinola; Michael Nwidobie

doi:10.52589/AJAFR-JMDKHN3R

Corporate Governance and Financial Performance of Nigerian National Petroleum Company Limited.

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African Journal of Accounting and Financial Research

Vol. 8Issue 22025pp. 67–83Published 12 May 2025

DOI 10.52589/AJAFR-JMDKHN3R

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Abstract:

This study examines the effect of corporate governance practices on the financial performance of the Nigerian National Petroleum Company (NNPC) Ltd. The data for the study was obtained from secondary sources, including the audited annual financial reports of the Nigerian National Petroleum Corporation Limited, covering ten years (2014-2023). With the aid of E-views 10 software, the regression analysis was utilized in analyzing the data. Test of hypothesis one reveals that board size has a statistically significant positive impact on operating profit, implying that larger boards may contribute to improved financial performance. Test of hypothesis two indicates that Independent Directors have a statistically significant positive effect on Operating Profit. It was found that corporate governance variables (board composition and board size) do not statistically impact NNPC Ltd’s financial performance. The study recommends that firms optimize board size and appoint independent directors with relevant industry expertise to enhance governance effectiveness and profitability.

Keywords:Board composition Board size Tax reforms Fiscal policies and Economic activities.

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