COMPANIES IN NIGERIA

This study investigates the impact of board diversity on financial performance in Nigeria’s oil and gas sector, focusing on national, ethnic, age, and gender diversity as key dimensions. The population comprises all twelve oil and gas companies listed on the Nigerian Exchange Group as of December 31, 2022, with a census approach capturing the entire population as the sample. Panel data methodology, specifically Ordinary Least Squares (OLS) regression, is employed to account for potential time-series variation and firm-specific effects in the analysis, using Earnings Per Share (EPS) as a proxy for financial performance. The study finds that ethnic and age diversity have a statistically significant positive impact on EPS, suggesting that a diverse mix of ethnic backgrounds and age groups within boards enhances financial outcomes. In contrast, national and gender diversity how no significant effect on EPS, indicating that these diversity dimensions may hold less influence in Nigeria’s oil and gas industry. The study recommends that companies in this sector prioritize ethnic and age diversity in board composition to improve financial performance, while policymakers and corporate leaders are encouraged to foster initiatives that support diverse perspectives, optimizing board effectiveness and shareholder wealth.