Effect of Employee Health and Safety Cost on Profitability of Listed Oil and Gas Companies in Nigeria

Abstract

The present study employed an ex-post facto research design to investigate the impact of employee health and safety costs on the profitability of oil and gas companies listed on the Nigerian Exchange Group (NXG) in 2023. Utilizing data analysis techniques such as descriptive statistics, Pairwise Granger Causality Tests, Panel unit root tests, and Ordinary Least Squares (OLS) regression analysis through E-view-9 software, the study fills gaps in previous research by focusing specifically on this underexplored aspect of corporate expenditure. Through purposive sampling, the study ensures a comprehensive analysis of companies with up-to-date financial reports, enhancing the reliability and validity of the findings. The study found that there is insufficient evidence to conclude that employee health and safety costs have a significant direct effect on profitability for the listed oil and gas companies in Nigeria within the examined timeframe. By adopting a rigorous research methodology and statistical approach, the study provides valuable insights into the relationship between employee health and safety costs and profitability in the Nigerian oil and gas sector, contributing significantly to the existing literature and advancing understanding in this field. The study further suggested that oil and gas companies should implement proactive safety measures, such as regular training and equipment upgrades, to prevent workplace accidents and reduce associated costs. Also, they should enhance transparency by integrating employee health and safety metrics into sustainability reporting frameworks to build stakeholder trust and accountability.