0704-883-0675     |      dataprojectng@gmail.com

The Role of Financial Derivatives in Risk Mitigation in Nigerian Corporations: A Case Study of Oando Plc

  • Project Research
  • 1-5 Chapters
  • Abstract : Available
  • Table of Content: Available
  • Reference Style:
  • Recommended for :
  • NGN 5000

Background of the Study

Financial derivatives, including options, futures, swaps, and forwards, are critical tools for managing financial risks in corporations. In Nigeria, corporations like Oando Plc use derivatives to hedge against risks such as oil price volatility, foreign exchange fluctuations, and interest rate changes. Derivatives enable firms to stabilize cash flows, protect profit margins, and enhance financial planning.

Oando Plc, a leading energy company, faces significant exposure to global oil price volatility due to its operations in exploration, production, and trading. By leveraging financial derivatives, the company seeks to mitigate these risks and ensure operational stability (PwC Nigeria, 2023).

This study explores the role of financial derivatives in risk mitigation at Oando Plc, providing insights into their effectiveness and implications for corporate risk management.

Statement of the Problem

Despite the benefits of financial derivatives, many Nigerian corporations underutilize these instruments due to limited expertise, regulatory challenges, and market constraints. For Oando Plc, effective risk management through derivatives is essential to navigate volatile global markets and maintain profitability.

The lack of empirical studies on the application and impact of derivatives in Nigerian corporations creates a knowledge gap. This study addresses this gap by analyzing Oando Plc’s use of financial derivatives.

Objectives of the Study

  1. To examine the role of financial derivatives in mitigating risks at Oando Plc.
  2. To assess the challenges faced by Oando Plc in utilizing financial derivatives.
  3. To propose strategies for optimizing the use of financial derivatives in Nigerian corporations.

Research Questions

  1. What role do financial derivatives play in mitigating risks at Oando Plc?
  2. What challenges does Oando Plc face in utilizing financial derivatives?
  3. What strategies can optimize the use of financial derivatives in Nigerian corporations?

Research Hypotheses

  1. Financial derivatives do not significantly mitigate risks at Oando Plc.
  2. Challenges in utilizing derivatives do not significantly affect risk management at Oando Plc.
  3. Strategies to optimize derivative use do not significantly improve risk mitigation in Nigerian corporations.

Scope and Limitations of the Study

The study focuses on the use of financial derivatives by Oando Plc from 2010 to 2025. Limitations include access to proprietary financial data and the evolving regulatory environment for derivatives.

Definitions of Terms

  • Financial Derivatives: Financial instruments whose value is derived from underlying assets such as commodities, currencies, or interest rates.
  • Risk Mitigation: Measures taken to reduce the impact of financial risks.
  • Oil Price Volatility: Fluctuations in global crude oil prices affecting revenues and costs.




Related Project Materials

THE ART OF NATURAL FAMILY PLANNING IN THE LIGHT OF JOHN F. KIPPLEY

STATEMENT OF THE PROBLEM

 

There is this popular perception that population growth impedes economic devel...

Read more
EXAMINATION OF THE EFFECT OF FINANCIAL AUTONOMY OF LOCAL GOVERNMENT ON RURAL REAL ESTATE DEVELOPMENT IN OWERRI NORTH LGA, IMO STATE.

Background of the Study

Local Governments in Nigeria are considered the closest tier of government to the people, playing a critical role...

Read more
An Appraisal of Government Food Safety Policies in Bauchi State

Background of the Study

Government food safety policies are essential for ensuring that food products distributed within the market are s...

Read more
Development of an Online Academic Calendar System: A Case Study of University of Abuja, Gwagwalada LGA

(Content for this topic was provided earlier. For brevity, refer to the previous section on “Development of an Online Academic Calendar S...

Read more
DESIGN AND IMPLEMENTATION OF A COMPUTERIZED PRODUCT DISTRIBUTION MONITORY SYSTEM (NIGERIA BREWERIES 9TH MILE CORNER ENUGU STATE)

BACKGROUND OF THE STUDY

Distribution as often said is a system by which products are transferred from t...

Read more
THE INFLUENCE OF DATA VISUALIZATION ON BUSINESS ANALYTICS

THE INFLUENCE OF DATA VISUALIZATION ON BUSINESS ANALYTICS 

This study investigates the influence o...

Read more
An Analysis of the Economic Implications of Strikes in Nigerian Universities: A Case Study of ASUU Strikes

Background of the Study

Strikes in Nigerian universities, particularly those organized by the Academic Staff Union of Universities (ASUU)...

Read more
The Effect of Poor Drainage Systems on Vector-Borne Diseases in Kano State

Background of the Study

Vector-borne diseases, such as malaria and dengue fever, remain significant public health threat...

Read more
EFFECT OF JOB STRESS ON EMPLOYEE’S PERFORMANCE

BACKGROUND TO THE STUDY

Creating a high performance organization is a popular theme in the training and...

Read more
THE ADOPTION LEVEL OF MODERN MANAGEMENT ACCOUNTING TECHNIQUES BY SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN KWARA STATE

ABSTRACT

This study was carried out to examine the adoption level of modern management accounting techniques by smal...

Read more
Share this page with your friends




whatsapp