Effect of Exchange Rate Changes on Financial Performance of Listed Oil and Gas Companies in Nigeria

This study examined the effects of exchange rate changes on the financial performance of listed oil and gas companies in Nigeria. Two hypotheses were formulated in line with the objectives of the study. The secondary data sources were used to assess the impact of exchange rate changes on financial performance of listed oil and gas companies in Nigeria. Expo facto research design was employed. The study analyzes time series data throughout 2011-2020 to test the relationships between exchange rate changes and return on assets for the 12 listed companies in the Nigerian Capital Market. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used for the data analysis. Findings revealed that there is no significant direct relationship between exchange rate changes and the financial performance of listed oil and gas companies in Nigeria. It is therefore recommended that the management of oil and gas companies in Nigeria should concentrate on other factors that can affect their organizational financial performance other than exchange rate changes.