Impact of Market Risk on the Financial Performance of Oil and Gas Servicing Firms in Nigeria, 2012-2024

Igwe; Okoro Eze; Ugwu; James Ike; iii; Okolie Romanus.O

doi:10.56201/jafm.vol.12.no7.2026.p300.311

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Impact of Market Risk on the Financial Performance of Oil and Gas Servicing Firms in Nigeria, 2012-2024

Igwe, Okoro Eze, Ugwu, James Ike, iii, Okolie Romanus.O

Abstract

The oil and gas sector play a pivotal function in Nigeria’s economic development, yet it remains highly exposed to diverse market risks that influence its financial performance. This study investigates the effect of market risk which is represented by, interest rate risk, and on the financial performance of selected oil and gas firms in Nigeria from 2012 to 2024. An ex- post facto and analytical research design was employed, using secondary data obtained from the published financial statements of five purposively selected firms. Data were analyzed using descriptive and inferential statistics with the aid of STATA 15, incorporating tests for model robustness through the Ordinary Least Square regression technique. The empirical results reveal that interest rate exerts a significant positive effect on firms’ return on assets . These findings underscore the critical influence of market dynamics on firm performance in Nigeria’s oil and gas industry. The study recommends that firms adopt comprehensive risk management strategies, including effective foreign exchange hedging and prudent capital structuring, to mitigate exposure to adverse market movements. Furthermore, transparent financial reporting, stable monetary policies, and deeper capital market reforms are essential to enhance resilience, investor confidence, and sustainable growth within the oil and gas sector. Key words: market risk, economic development, return on assets, financial performance, monetary policies, investor confidence .

Keywords

market riskeconomic developmentreturn on assetsfinancial performancemonetary policiesinvestor confidence .

References

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Impact of Market Risk on the Financial Performance of Oil and Gas Servicing Firms in Nigeria, 2012-2024

Abstract

Keywords

References

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