Enhancing Corporate Success Through the Business Sustainability Model: An Empirical Analysis of the Impact of ESG Factors on the Financial Performance of Oil and Gas Firms in Nigeria

The fundamental goal of Financial Management is the maximization of shareholders’ wealth. Organizations, therefore, characteristically employ appropriate Business Models with policy initiatives that putatively enhance indicators of corporate financial success. Empirical evidence, however, does not in many cases validate the supposed predication of corporate financial of performance of firms on the policy components of their operational Business Models, thus making the relationship between some models and the relevant financial performance indicators somewhat nebulous. This study investigates the relationship between the Business Sustainability Model and corporate financial success in Nigeria’s oil and gas sector. Environmental, Social, and Governance (ESG) factors are used as operational dimensions of the predictor variable while Earnings Per Share (EPS) and Share Price are employed as proxies for financial performance, the criterion variable. Utilizing a panel data approach across 8 listed firms from 2013 to 2023, the research applies both Fixed Effects and Random Effects models, with the Hausman test confirming the suitability of the Fixed Effects model. The findings reveal that environmental performance significantly and positively affects firm performance, suggesting that firms engaging in environmentally responsible practices tend to outperform their peers. However, social and governance scores exhibit no statistically significant impact on EPS, with governance even showing a negative association. These outcomes are discussed in the context of stakeholder theory, legitimacy theory, and the resource-based view and are compared to previous empirical studies. The study concludes that environmental sustainability is a vital driver of corporate success in Nigeria, while social and governance practices require stronger institutional support and strategic alignment to deliver measurable benefits. In the light of our findings, we recommend enhanced ESG integration, improved corporate governance enforcement, and standardized ESG reporting. Besides contributing to the growing literature on sustainable business practices in emerging markets, this study highlights the strategic relevance of the Business Sustainability Model in promoting firm performance and long-term value creation.