Responsiveness of Corporate Profitability to Staff Incentive Scheme of Oil and Gas Firms in Nigeria

The study set out to examine the responsiveness of corporate profitability to staff incentive schemes of oil and gas firms in Nigeria from 2010 to 2019. Four (4) firms were sampled from a population of eleven (11) oil and gas firms listed on the Nigeria Stock Exchange during the period. Secondary data were collected from the published annual financial statements of the selected firms. Staff salaries and wages, and staff pension scheme are the independent variables and proxies for staff incentive scheme while profit for the year is the dependent variable as well as a measure of corporate profitability. Pearson Product Moment Correlation Matrix was used to analyze the data collected from the selected firms. Results of the analysis reveal that profit for the year of the oil and gas firms positively and significantly responds to staff wages and salaries, but positively and insignificantly responds. In the light of these findings, the study recommends that oil and gas firm managers in Nigeria should have an appropriate wages and salary policy in place that will ensure a regular review of staff wages and salaries. It was also recommended that the firms should ensure that pension contributions are regularly remitted to the staff pension funds and equally ensure that retired staff of the firms receive their pensions as and when due