LEASE FINANCING AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS FIRMS IN NIGERIA

This study examines the effect of lease financing and financial performance of listed oil and gas firms in Nigeria using an ex-post facto research design. The population of the study consists of nine (9) listed oil and gas companies from the Nigerian Exchange Group (NGX). The study used a simple random sampling, where all the listed oil and gas firms were selected as sample size. This study adopts panel regression technique of data analysis. The findings revealed that liquidity has a negative and statistically significant effect on ROA. Also, tangibility had a positive and significant influence on ROA. However, risk mitigation exhibited a negative but statistically insignificant relationship with ROA. The study concluded that liquidity negatively affects financial performance in the Nigerian oil and gas sector. Further, tangibility significantly improves financial performance. Oil and gas firms with a higher proportion of tangible fixed assets tend to report better profitability, likely due to the productive use of infrastructure and capital equipment. The risk mitigation does not significantly impact financial performance. The study recommended among others that oil and gas firms should strike a balance between holding sufficient current assets for operational efficiency and avoiding excessive idle capital that could otherwise be invested for returns. Further, management should continue to prioritize investment in tangible fixed assets, such as machinery and infrastructure, which are positively associated with enhanced profitability. Asset acquisition should align with long-term strategic goals to ensure optimal asset utilization.