Abstract: The oil and gas sector has been the main stay of the Nigerian economy which has attracted lots of investors and consequently maximization of wealth in the form of dividend. This study therefore investigated the effect of dividend policy on the performance of listed oil and gas firms in Nigeria spanning from 2007-2016. Secondary data were sourced from 9 listed firms which formed the sample size of this study. The collected data were analysed using descriptive statistics, correlations matrix and pooled regression analysis. Also, residuals of result were subjected to various diagnostic tests such as Variance Inflation Factor and Heteroskedasticity. Findings from the analysis revealed that dividend payout ratio and retained earnings positively affects earnings per share of listed oil and gas firms in Nigeria while dividend yield had a significant but negative effect on earning per share. Based on this, the study therefore recommends that oil and gas firms willing to maximize shareholders wealth and firms value should endeavor to consistently increase their dividend payout ratio as this sends a signal that the firm is financially healthy.