Liquidity management and entrepreneurial performance of selected indigenous oil and gas firms in Nigeria

Abstract

The study investigates the impact of liquidity management on the entrepreneurial performance of indigenous oil and gas firms in Nigeria. It employs both qualitative and quantitative evaluation techniques, focusing on liquidity management indicators such as the current ratio, acid test ratio, and net working capital ratio. Primary data is collected through interviews with key informants from selected firms. The qualitative findings underscore the importance of monitoring financial health and strategic planning within oil and gas firms. However, the quantitative analysis reveals a statistically significant negative relationship between liquidity management and firm growth, indicating that an increase in liquidity management indicators correlates with a decrease in firm growth. Specifically, a unit increase in employment and wealth results in a substantial increase in liquidity management indicators but a significant decrease in firm growth. Based on these findings, the study recommends policy interventions to enhance liquidity management competencies, including fostering knowledge exchange, providing training, and investing in technology research and development. By improving domestic competencies in the downstream sector, firms can better navigate liquidity challenges and support entrepreneurial growth in the oil and gas industry