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This study aims to find the impression of capital structure on financial performance of oil and gas companies quoted on the Nigerian Stock Exchange (NSE). The primary objective is to find the connection between debt to total assets on return on assets and total debt to total equity on return on equity of oil and gas companies quoted on the Nigerian Stock Exchange. Secondary data were carefully sourced from the financial statement/annual reports of the oil and gas companies quoted on the Nigerian Stock Exchange. The data span from 2005 to 2018. E-views 10.0 software was used to analyse the data collected. Findings from data analysed show that total debt to total assets has no significant effect on return on assets of oil and gas companies quoted on the Nigerian Stock Exchange and that total debt to total equity has a significant effect on return on equity of oil and gas companies quoted on the Nigerian Stock Exchange. Accordingly, the study concluded that financial performance is independent of capital structure as companies prefer internal financing before resorting to any form of external funds because internal funds incur no flotation costs and require no additional disclosure of proprietary financial information that could lead to more severe market discipline and a possible loss of competitive advantage. It recommends that firm’s management should establish a debt-equity mix capable of improving return on assets notwithstanding the measurement of capital structure measure adopted and that oil and gas companies should fund their operations with more of equity capital as it significantly influence shareholders’ wealth.


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