ABSTRACT

This study investigated the effect of corporate social responsibility cost on the financial performance of oil and gas companies in Nigeria. To achieve this objective, the study specifically investigated the effect Corporate Social Responsibility Cost (CSRC) on Return on Asset (ROA), effect of Corporate Social Responsibility Cost (CSRC) on Return on Equity (ROE), effect of Corporate Social Responsibility Cost (CSRC) on Net Profit Margin (NPM) on oil and gas companies in Nigeria. The study restricted its scope to the period 2014-2018 and data used for the study was adopted from the Annual Report of the selected oil and gas companies listed on the Nigeria Stock Exchange (NSE) for a period of five (5,) years. The simple regression method was employed as the analytical tool. Findings showed that the dependent variables Return on Asset (ROA,), Return on Equity (ROE) and Net Profit Margin (NPM) are positively affected by Corporate Social Responsibility Cost (CSRC). The study also revealed that there is a very high relationship between Corporate Social Responsibility Cost (CSRC) and the various dependent variables that is Return on Asset (ROA), Return on Equity (ROE) and Profit Margin (PM). The study recommends that Corporate social responsibility projects should be provided by oil and gas companies in Nigeria especially to the host communities, Oil and gas companies in Nigeria should ensure to put measures in place to reduce the nuisance of environmental pollution and Oil and gas companies in Nigeria should institute proactive waste management systems and structures that ensure that the disposals of the harmful by-products in every aspect of their operations are properly handled.