BOARD GOVERNANCE AND THE EFFECTIVENESS OF CSR SPENDING: EVIDENCE FROM NIGERIA’S OIL AND GAS SECTOR

This study investigates the influence of board governance characteristics, specifically board expertise, board tenure, and board meeting frequency, on the effectiveness of corporate social responsibility (CSR) initiatives in Nigerian oil and gas companies. The objective is to explore how these governance factors impact the success of CSR projects within host communities. Using secondary data collected from the annual reports, corporate governance disclosures, and CSR statements of eight listed oil and gas companies on the Nigerian Exchange Group (NGX) over a period of ten years (2014-2023), the study adopts a census approach to ensure comprehensive coverage of the industry. Data analysis is conducted through panel data regression, alongside descriptive statistics and correlation analysis, using STATA version 13 to ensure robustness. The results show a positive and significant relationship between board expertise, board tenure, and board meeting frequency with CSR effectiveness, suggesting that boards with higher professional qualifications, greater experience, and more frequent meetings are better positioned to deliver impactful CSR outcomes. The study concludes that effective governance, particularly through enhanced board expertise and tenure, is crucial for improving CSR performance in the oil and gas sector. In light of these findings, it is recommended that companies invest in enhancing board qualifications and foster long-term tenure and consistent board engagement to maximize the impact of CSR initiatives, ultimately contributing to sustainable community development and improved corporate reputation.