EFFECT OF MONETARY INCENTIVES ON EMPLOYEE PERFORMANCE IN NIGERIAN NATIONAL PETROLEUM CORPORATION LIMITED: A STUDY OF MAIDUGURI BRANCH

This study investigates the effect of monetary incentives on employee performance in the Nigerian National Petroleum Corporation Limited (NNPC), Maiduguri Branch. Against the backdrop of increasing emphasis on employee productivity in the public sector and the strategic importance of NNPC in Nigeria’s oil-dependent economy, the research explores how financial incentives specifically bonuses, profit sharing, and commission—impact employee motivation and performance. Adopting a quantitative research design, data were collected through structured questionnaires administered to all 132 permanent staff of NNPC Maiduguri, with 111 valid responses analyzed using Statistical Package for the Social Sciences (SPSS). The findings reveal that both bonuses and commission significantly and positively affect employee performance, with commission emerging as the most influential predictor. However, profit sharing was found to have an insignificant and negative effect on performance. The regression model explained 39% of the variance in employee performance, and the model as a whole was statistically significant. These results underscore the importance of performance-linked financial incentives, particularly commission and bonuses, in enhancing productivity. The study recommends the institutionalization of transparent and timely monetary incentive systems tailored to employee roles and contributions, especially in high-risk operational environments like Maiduguri. This research contributes to the growing literature on public sector motivation and provides practical insights for improving workforce performance through structured financial rewards.