MITIGATING THE EFFECT OF PIPELINE VANDALISM AND PRODUCTION DECLINE IN NIGERIA’S OIL AND GAS SECTOR: A CASH FLOW PLANNING APPROACH TO SUSTAINABLE FIRM SURVIVAL

Abstract

The study considered mitigating the effect of pipeline vandalism and production decline in Nigeria’s oil and gas sector using a cash flow planning approach to sustainable survival. Net cash flow from operating activities (NCFOA), Net cash flow from investing activities (NCFIA), and Net cash flow from financing activities (NCFFA) were the independent variables, while sustainable survival was the dependent variable. Six (6) of the eleven (11) oil and gas firms listed on the Nigerian Exchange Group (NGX) using a simple random sampling technique. The ex-Post facto research design was adopted. Three hypotheses guided the study. Regression models were used. The results revealed that NCFOA, NCFIA and NCFFA have significant positive effect on sustainable survival. Implications of the findings include that an increase in NCFOA will enhance firm survival, just investing decisions will significantly affect survival. The study recommends that managers of oil and gas firms in Nigeria should expand activities such as improved marketing and promotions, carefully evaluate investment choices to include building refineries to guarantee optimal value creation and increased survival. While considering the limits of the risk appetite of the management.