The paper considered the significance of fringe benefits on employee morale and productivity in oil companies using Shell Petroleum and Development Company Warri in Southern Nigeria. The objective of this study was to find out the significance of fringe benefits on employee morale and staff productivity. Three hypotheses were tested based on the direction and collection of data from various respondents through administered questionnaires and direct interviews. A total of fifty (50) questionnaires were distributed to the categories of staff in the company. Chi-square test was used to test the hypotheses and the results was significantly accepted. Findings revealed that fringe benefit as an incentive, significantly affects employees morale and productivity. As such it should be enhanced. We concluded that fringe benefits play a vital role in the level of employees’ morale and productivity of companies. Also recommendation on increase in the various forms of fringe benefits in private and public companies was made. Bearing in mind “that those who promote these benefits will have increased ability in return and those who distant themselves will fail... That is what is called being a leader and responsive teacher of successful men” Hsun (1960).