Research Article

THE MODERATING ROLE OF BOARD SIZE IN THE FINANCIAL LEVERAGEPROFITABILITY NEXUS: EVIDENCE FROM LISTED OIL AND GAS FIRMS IN NIGERIA

Adetoro Moshood Iliyasu1*, Rahilahtu Ahmad Muhammad1, Jamila Mohammad1
1 Department of Business Administration and Entrepreneurship, Kaduna State University, Nigeria.
* Corresponding author: miadetoro@gmail.com
Published: Jun, 2026
DOI: 10.67894/bbr.2026.uy1wywrz
Pages: 116-139
Views: 21
Downloads: 4

Abstract

The research investigated how the size of a company's board of directors influences the connection between financial leverage and profitability in listed oil and gas firms in Nigeria. The study included eight out of the nine oil and gas companies that were publicly listed as of December 31, 2024.The data used in the analysis were collected from the audited annual reports and financial statements of these selected firms over a span of thirteen years, from 2012 to 2024. Various regression models were applied, all based on the Ordinary Least Squares (OLS) method. The findings indicate that the ratio of long-term debt to total assets has a statistically significant negative effect on profitability, which was measured using return on assets (ROA). Furthermore, the study found that board size does not significantly influence the relationship between financial leverage and profitability, which suggests that board size functions more as a moderating rather than a direct factor. These results highlight that excessive reliance on debt can harm a company's profitability and emphasize the importance of prudent debt management within Nigeria's oil and gas sector. By focusing on the oil and gas industry in Nigeria, this study contributes to the body of knowledge in this specific context. The research recommends that companies in this sector should work towards enhancing their financial performance through better debt management practices and ongoing monitoring. 

Keywords

Financial leverage board size long-term debts to total assets profitability return on assets

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How to Cite

Iliyasu, A. M., Muhammad, R. A., & Mohammad, J. (2026). THE MODERATING ROLE OF BOARD SIZE IN THE FINANCIAL LEVERAGEPROFITABILITY NEXUS: EVIDENCE FROM LISTED OIL AND GAS FIRMS IN NIGERIA. Bayero Business Review, 10(1), 116-139. https://doi.org/10.67894/bbr.2026.uy1wywrz

A. M. Iliyasu, R. A. Muhammad, and J. Mohammad, "THE MODERATING ROLE OF BOARD SIZE IN THE FINANCIAL LEVERAGEPROFITABILITY NEXUS: EVIDENCE FROM LISTED OIL AND GAS FIRMS IN NIGERIA," Bayero Business Review, vol. 10, no. 1, pp. 116-139, June 2026. doi: 10.67894/bbr.2026.uy1wywrz

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