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Risk management in the oil and gas sector: management of government equities in the Nigeria oil and gas sector

Author

Listed:
  • Ever Obi

    (Risk and Fences Limited)

  • Olajide Solomon Fadun

    (University of Lagos)

Abstract

Petroleum is a gift of nature deposited under the earth’s surface. The ‘black gold’ as it is generally called, is viewed as a treasure that has the capabilities of transforming the social and economic fortunes of any country. This study explores risk management in Nigeria oil and gas sector with reference to management of government equities in the Nigerian oil and gas sector. A survey design was used for the study. By means of questionnaire, primary data was obtained from randomly selected members of the sampled organisations. The research hypotheses were subjected to chi-square analysis. Analysis was based on fifty-three copies of questionnaire filled and retrieved out of seventy-five questionnaires administered to employees of NNPC, NLNG and Shell companies in Nigeria. Findings from the study revealed some deficiencies in the way government equities in the Nigerian oil and gas sector are being managed, such lapses include government undue interference, lack of transparency, absence of established positive culture and too much bureaucracy. The study concludes that the Nigerian government equities in the oil and gas sector are not effectively managed; the fiscal policy in Nigeria’s oil and gas sector is inadequate; NNPC as presently constituted is not managing government equities invested in oil and gas JV agreements. Among the recommendations of the study include: the government should monitor returns on equities in the oil and gas sector in Nigeria; the government and stakeholders need the establishment a good culture and practice to ensure profitable ownership and collaboration. Key Words:Risk Management, Oil and Gas, Nigeria, Nonrenewable resources, Government

Suggested Citation

  • Ever Obi & Olajide Solomon Fadun, 2025. "Risk management in the oil and gas sector: management of government equities in the Nigeria oil and gas sector," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 14(3), pages 124-138, April.
    • Handle: RePEc:rbs:ijbrss:v:14:y:2025:i:3:p:124-138
    DOI: 10.20525/ijrbs.v14i3.4162
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    References listed on IDEAS

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    1. IKM Mokhtarul Wadud & Huson Joher Ali Ahmed, 2016. "Oil price volatility, investment and sectoral responses: The Thai experience," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(3), pages 357-379, July-Sept.
    2. Nashat Ali Almasria & Hassan Hamad Aldboush & Omar Al-Kasasbeh & Abdalwali Lutfi & Fadya Burhan Alhajahmad & Thamir Al Barrak & Ghaith Alsheikh, 2024. "Oil Price Volatility and Economic Growth: Evidence from the Middle East," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 417-421, May.
    3. Mushtaq Hussain Khan & Junaid Ahmed & Mazhar Mughal & Imtiaz Hussain Khan, 2023. "Oil price volatility and stock returns: Evidence from three oil‐price wars," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 3162-3182, July.
    4. Olajide Solomon Fadun & Diekolola Oye, 2021. "The analysis of drivers of operational risks in Nigerian commercial banks," Bussecon Review of Social Sciences (2687-2285), Bussecon International Academy, vol. 3(3), pages 01-14, July.
    5. Olajide Solomon Fadun & Diekolola Oye, 2020. "Impacts of Operational Risk Management on Financial Performance:A Case of Commercial Banks in Nigeria," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(1), pages 22-35, January.
    6. Ahmad Al-Harbi & Moid U. Ahmad, 2024. "Can Oil Prices Volatility Explain Economic Growth?," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 614-620, November.
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    Cited by:

    1. Israel Akinbode Owolabi & Michael Odei Erdiaw‐Kwasie & Emmanuel Tenakwah & Matthew Abunyewah, 2026. "Corporate Sustainability Performance and Fraud Risk Management in Nigeria's Extractive Sector: The Moderating Role of Ownership Structure in an Evolving Environmental Policy Landscape," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 33(2), pages 2906-2927, March.

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