INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION

COMMUNITY DEVELOPMENT COST AND NET PROFIT MARGIN IN QUOTED OIL AND GAS COMPANIES IN NIGERIA.

Igwe, Christian Chukwuma M.Sc. (UPH), Prof. Ogbonna, G.N. (PhD, FCA),
February 16, 2026

Abstract

This article synthesizes on Community Development Costs and Net Profit Margin on quoted oil and gas companies in Nigeria—two of the most debated components of CSR–performance research in Africa. Using longitudinal panel data from 2012–2022, the study applied multiple regression, Error Correction Estimate and Causality Testing. The results reveal that community development cost has a significant positive relationship with net profit margin, confirming the view that strategic CSR enhances both corporate legitimacy and financial outcomes. The paper concludes with practical policy recommendations as pathways for leveraging CSR and a profit-enhancing strategy in resource-dependent communities. The study also emphasizes the inevitability and urgent need for CSR in the contemporary society if there should be harmonious oil companies’ operations in the host communities. Most importantly, the cost that would have been saved, if properly invested in CSR should have greater positive multiplier effects and bring about better community development and oil companies profitability.

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INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION

Published in INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION

ISSN: 3027-0378

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