Corporate Reorganization and Corporate Performance of Oil and Gas Companies in Nigeria
Article Sidebar
Main Article Content
Good performance directly contributes to maximizing shareholder value, and serves as a primary driver for attracting new investors. It further demonstrates financial health, effective management, and the potential for future returns. Organizations cannot always operate in the same manner since they are dynamic systems. They must change through several life cycles in order to function smoothly and effectively. One of the main goals for organization across the globe is to improve corporate performance. In order to maximize financial performance and manage financial difficulties, corporate restructuring has evolved into a crucial strategy for businesses. Evidence from literature showed that Organizations encounter challenges which led to financial distress of many and liquidation of many oil and gas companies. Research has shown that not many oil and gas companies have integrated corporate reorganization into their systems for enhancement of their performance. This study therefore examined the effect of corporate reorganization on financial performance of listed oil and gas companies in Nigeria for the period between 2010 - 2024. Ex-post facto research design was used. The population of the study was 14 listed oil and gas companies in Nigeria Using the purposeful sampling techniques, the sample size was 11 listed oil and gas companies The study found that assets restructuring has no significant effect on financial performance as indicated by the coefficient 0.0084 and p-value 0.157 at 5% level of significant while corporate financial restructuring and organizational restructuring have positive and significant effect on financial performance with coefficient (1.3760; 0.1132) and p-value (0.009; 0.003) at 5% level of significant respectively. The study concluded that corporate reorganization enhanced the corporate performance of oil and gas companies. It recommended that Nigerian oil and gas management should create new market strategies, practices, and resources that will boost competitiveness, adapt to market changes, and facilitate the development of unique products and services that will satisfy shifting consumer demand for enhancement and growth of corporate performance.
Downloads
References
Abiodun, G., Olumuyiwa, H. & Olatubosun, A. (2024). Effect of restructuring on organisational performance. A study of selected small and medium enterprises (SMEs) in an emerging economy. Stratford Peer Reviewed Journals and Book Publishing Journal of Strategic Management, 8(2), 84-108.
Adeyemi, A. A. & Bakare, O. T. (2019). Effect of sustainability reporting on the corporate performance of selected manufacturing companies in Nigeria. Lapai Journal of Economics. 3(1), 202- 214.
Asika, N. (2016). Research methodology in behavioural sciences. Lagos: Longman Publishing Limited.
Asogwa, I. E. (2017). Sustainability reporting and financial performance: a conceptual landscape. Research Journal of Finance and Accounting, 8(10), 124-132
Atiyah, G, A. (2020). Effect of the dimensions of strategic change on organizational performance level.PalArch’s Journal of Archeology of Egypt/Egyptology.17 (08), 1269-1282. https://archives.palarch.nl/index.php/jae/article/ download/9542/8805/18700
Azzouzi, B. (2022). The effect of corporate restructuring on company performance: A case study of Moroccan listed companies. International Journal of Business and Technology Studies and Research, 4(3), 1-9.
Bakare, T. O. Almustapha A. A., Abdulfatai O. N. & Kamoru F. (2023). Working capital management and firm’s profitability in emerging markets: The case of Nigerian listed consumer goods companies. Journal of Entrepreneurship and Business, 11(2), 131-144, Universiti Malaysia Kelantan. http://journal.umk.edu.my/index.php/jeb/
Bédu, N., & Palard, J. E. (2021). The performance of majority MBOs: An investigation on European SMEs controlled by their managers. Finance Contrôle Stratégie, 24(1). 10.4000/fcs.7014.
Bellomarini, L., Bencivelli, L., Biancotti, C., Blasi, L., Conteduca, F. P., Gentili, A., Laurendi, R., Magnanimi, D., Zangrandi, M. S., Tonelli, F., Ceri, S., Benedetto, D., Nissl, M., & Sallinger, E. (2022). Reasoning on company takeovers: From tactic to strategy. Data & Knowledge Engineering, 141, 102073. doi:10.1016/j.datak.2022.102073
Bhabad, S. L., & Upadhyay, A. A. (2022). A literature review on organizational culture towards corporate performance. In Contemporary Issues in Commerce & Management (vol. 1, pp. 1-19). Red Shine Publication PVT. Ltd.
Bowman, C. & Ambrosini, V. (2018), “Using single respondents in strategy research”, British Journal of Management, 8(2), pp. 119-31.
Chae, B., Kim, J., & Lee, D. G. (2022). Exploring partnering and joint ventures in the construction industry: A brief perspective. Journal of Southwest Jiaotong University, 57(1), 707–717. doi:10.35741/issn.0258-2724.57.1.63
Chemiati, M. B., Makokho, E. N. & Soi, S. K. (2024). Strategic Restructuring on Performance of Corporations in TransNzoia County, Kenya. International Journal of Recent Research in Social Sciences and Humanities, 11(3), 166-176.
Deloitte. (2025). 2025 oil and gas industry outlook. Deloitte Insights. https://www.deloitte.com/us/en/insights/industry/oil-and-gas/oil-and-gas-industry-outlook.html
Dixit, D. K., Kaushik, A. & Sharma, R. (2024). Evaluating Corporate Restructuring Outcomes: The Impact of Financial Ratios on Organizational Performance. European Economic Letters, 14(4), 202-210.
Echobu, J., Ekundayo, O. O., & Abu, S. O. (2022). Value relevance of sustainability reporting in the oil and gas sector in Nigeria. International Journal of Accounting Research, 7(1), 38-45.
Florio, M., Ferraris, M., & Vandone, D. (2018). Motives of mergers and acquisitions by state-owned enterprises: A taxonomy and international evidence. International Journal of Public Sector Management, 31(2), 142–166. doi:10.1108/IJPSM-02-2017-0050
Girod, S., & Karim, S. (2017). Restructure or reconfigure? Designing the reorganization that works for you. Harvard Business Review, 95(2), 128–132. https://ssrn.com/abstract=3912317.
Gompers, P. A., & Kaplan, S. N. (2022). Advanced introduction to private equity. Edward Elgar Publishing.
Green, D. D., & McCann, J. (2020). The coronavirus effect: Building strategic alliances in today’s Universities and Colleges. Management and Economics Research Journal, 6(3), 1124819. doi:10.18639/MERJ.2020.1124819
ICLG. (2025). Oil & gas laws and regulations: Nigeria 2025. The International Comparative Legal Guide. https://iclg.com/practice-areas/oil-and-gas-laws-and-regulations/nigeria
Kanyagia, J. W. (2020). Effects of corporate restructuring strategy on performance of insurance companies in Kenya: A case study of Britam holding limited [Published MBA Thesis]. United States International University - Africa.
King, D., Bauer, F., & Schriber, S. (2018). Mergers and acquisitions: A research overview. Routledge. doi:10.4324/9780429469459
King, D. R. (2022). Reflection on corporate restructuring research. In Acquisitions and corporate strategy (pp.1–7). Routledge.
Lawrence, U. O., Alexander, E. O., Johnson, I. O., Felix, N. E. & Esther, I. (2020). Impact of corporate restructuring on the financial performance of commercial banks in Nigeria. Banks and Bank Systems, 15(1), 42-50. doi:10.21511/bbs.15(1).2020.05
Lucky, A. L., & Akani, H. W. (2019). Cost of capital and dividend policy: a panel data study of Nigeria commercial banks. European Journal of Accounting, Finance and Investment, 4(12), 80-89.
Macaulay, E. W. & Okoro, C. E. (2025). Corporate restructuring and strategic market position of oil and gas firms in Nigeria. International Journal of Academic and Applied Research, 9(8),
169-176.
Michael, N. (2019). The extent of minority shareholders’ protection in takeovers: Right actions. Chukwuemeka Odumegwu Ojukwu University Journal of Commercial and Property Law, 2(1), 1–12.
Muazu Adeiza Umar, (2025). Corporate Restructuring: A Strategy for Improving Organizational Performance. International Journal of Strategic Decision Sciences, 14(1), 1-11.
Mordor Intelligence. (2025). Nigeria oil and gas market — Market size & share analysis. Mordor Intelligence. https://www.mordorintelligence.com/industry-reports/nigeria-oil-and-gas-market
Ndege, M. W., & Ogollah, K. (2020). Effects of corporate restructuring on performance of international organizations: A case of International Finance Corporation. International Research Journal of Business and Strategic Management, 1(1), 24-36. https://www.irjp.org/index.php/irjbsm/article/view/5
Nwariaku, I. S., & Okoroiwu, K. I. (2022). Impact of mergers and acquisitions of exploration of oil and gas companies on shareholder returns in Nigeria. Journal of Management, 4(2), 43–55.
Nweze, A. U., Ejim, E. P., Onah, S. C., & Ajagu, E. H. (2022). Corporate restructuring: A panacea for organizational effectiveness in the private sectors. European Journal of Marketing and Management Sciences, 5(2), 10–22. https://aspjournals.org/Journals/index.php/ejmms/index/
Nyambura, M. P., & Maina, R. (2021). Organizational restructuring and performance of commercial banks in Mombassa County, Kenya. International Journal of Business Management, Entrepreneurship and Innovation, 3(3), 103–122. doi:10.35942/jbmed.v313.219
Nyiwul, L., & Iqbal, B. A. (2023). Evidence on divestment motives: An overview. Global Trade and Customs Journal, 17(11&12), 501–514. doi:10.54648/GTCJ2022070
Odi, E. R. & Oji, G. U. (2024). Corporate Restructuring and the Shareholders Wealth of Selected Firms in Nigeria. IIARD International Journal of Banking and Finance Research, 10(9), 106-124
Ogbaini, C. A. (2025). Supply chain management strategies on oil and gas companies performance in Nigeria. INCOME: Innovation of Economics and Management, 4(3), 96-104.
Okoye, L.U., Omankhanlen, A.E., Okoh, J.I Ezeji, F.N & Ibileke, E. (2024). Impact of corporate restructuring on the financial performance of commercial banks in Nigeria. Banks and Bank Systems, 15(1), 42-50
Owolabi, F. Taleatu, A. Adetula, D. & Uwuigbe, U. (2016), Assessment of Sustainability Reporting in Nigerian Industrial Goods Sector. 3rd International Conference on African Development Issue
Ray, K. G. (2022). Mergers and acquisitions: Strategy, valuation and integration (2nd ed.). PHI Learning Pvt. Ltd.
Talebi, K., Farsi, Y. J., & Miriasl, H. (2017). Identifying the impact of strategic alliances on the performance of SMEs (Case study: The industry of automotive parts manufacturers in Iran). International Business Research, 10(6), 227–235. doi:10.5539/ibr.v10n6p227
Tang, K. N. (2019). Restructuring: Mergers and acquisition. In Leadership and Change Management (pp. 57- 61). Springer.
Tonye, O., & Boubai, F. M. (2025). Performance of oil and gas sector in Nigeria: Does environmental, social, and governance reporting really matter?. International Journal of Accounting Research, 10(1), 59-62.
Udeoji, & Udeoji, N. N. (2024). A Comparative Analysis of Corporate Restructuring in Nigeria.
Journal of Refugee Law and International Criminal Justice, 3(1), 84-110.
Uwuigbe, U., Obarakpo, T., Olubukola, R.U., Ozordi, E., Osariemen, A., Gbenedio, A. E. & Oluwagbemi, S.T. (2018). Sustainability reporting and firm performance: a bi-directional approach. Academy of Strategic Management Journal, 17(3), 1-16.
Vo D. H., Vo A. T., Dinh, C. T. H. and Tran, N. P. (2024). Corporate restructuring and firm performance in Vietnam: The moderating role of digital transformation. PLoS ONE 19(5): e0303491. https://doi.org/10.1371/journal.pone.0303491
This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles published in our journal are licensed under CC-BY 4.0, which permits authors to retain copyright of their work. This license allows for unrestricted use, sharing, and reproduction of the articles, provided that proper credit is given to the original authors and the source.