Nigeria

Environmental Cost Disclosures and Sustainability Performance of Listed Oil and Gas Firms in Nigeria: Does Green Innovation Matter? (Published)

This study explores the moderating role of green innovation on the connection between environmental cost disclosures and the sustainability performance of listed oil and gas firms in Nigeria. The population comprised all listed oil and gas firms in Nigeria, and a non-probability sampling technique of convenience was used to determine 150 participants with primary data as the major instrument of data collection from a structured questionnaire. The administered questionnaires were analysed using descriptive and inferential statistics. The regression analysis reveals that compliance and regulatory cost disclosure has no significant effect on the social performance, that pollution control and abatement cost disclosure has a significant effect on the social performance, resource use and conservation cost disclosure has a significant effect on the social performance and remediation and restoration cost has significant effect on the social performance of listed oil and gas firms in Nigeria. Also, the findings disclose that compliance and regulatory cost disclosure has a significant effect on economic performance, pollution control and abatement cost disclosure has a significant effect on economic performance, resource use and conservation cost disclosure has a significant effect on economic performance and remediation and restoration cost has a significant effect on the economic performance of listed oil and gas firms in Nigeria. Additionally, the findings reveal that green innovation does significantly moderate the relationship between environmental cost disclosures on social and economic performance of listed oil and gas firms in Nigeria. In conclusion, the study underscores that green innovation acts as a strategic enabler, strengthening the link between environmental accountability and sustainable performance. Therefore, oil and gas firms in Nigeria should not only comply with environmental reporting requirements but also embed innovation into their operational and strategic frameworks.

Keywords: Nigeria, environmental cost disclosure, green innovation, oil and gas firms, sustainability performance

Financial Reporting Quality and Labour Investment Efficiency in Selected Manufacturing Companies in Nigeria (Published)

This study examined financial reporting quality and labour investment efficiency in selected manufacturing firms in Nigeria. The objectives were to investigate the impact of timeliness of financial report on labour investment efficiency of selected manufacturing firms in Nigeria; determine the impact of completeness of financial report on labour investment efficiency of selected manufacturing firms in Nigeria; and examine the impact of transparency of financial report on labour investment efficiency of selected manufacturing firms in Nigeria. Expost facto design was adopted. Data were collected from financial reports of Cadbury Nigeria Plc, Dangote Plc, Nigerian Breweries Plc and Guinness Nigeria Plc covering the period 2011 to 2023. The data were subjected to unit root test, cointegration, and multiple linear regressions. Findings revealed that timeliness of financial report has negative and insignificant impact on labour investment of selected manufacturing firms in Nigeria; Completeness of financial report has positive and significant impact on labour investment of selected manufacturing firms in Nigeria; transparency of financial report has significant impact on labour investment of selected manufacturing firms in Nigeria. It concluded that financial reporting quality positively impacts on labour investment efficiency. Regulators and stakeholders could improve the firms’ financial reporting quality and labour investment efficiency by strengthening the monitoring role of the top management team and ensuring timeliness in their financial reports. Executives should ensure shaping the firms’ future by giving more attention to labour recruitment and retention

Keywords: Financial Reporting Quality., Manufacturing Companies, Nigeria, labour investment efficiency

Does Value Added Tax Burden Reduce Human Capital Development? Evidence from Nigeria? (Published)

This study examined the effect of Value Added Tax (VAT) burden on human capital development in Nigeria, with a specific focus on life expectancy. The study adopted an ex-post facto research design. Secondary data spanning from 1990 to 2024 were obtained from the Central Bank of Nigeria Statistical Bulletin and other relevant official sources. Autoregressive Distributed Lag Model (ARDL) was employed to assess the effect of VAT on life expectancy ratio in Nigeria. The analysis revealed that VAT has a significant negative effect on life expectancy, with a p-value of 0.0533 and a t-statistics of -2.011462. This suggests that the rising burden of consumption taxes like VAT may lower the average lifespan of citizens, likely due to reduced disposable income, increased cost of essential goods and services, and limited access to healthcare and nutrition. The study recommends that the government review the structure and rate of VAT, while strengthening social safety nets and public health investments, to mitigate the regressive effects of VAT on vulnerable populations. These measures are critical to improving the standard of living and advancing human capital development in Nigeria.

Keywords: Human Capital Development, Nigeria, OLS regression, Tax Burden, Value Added Tax, economic wellbeing, ex-post facto design, life expectancy

The Mediating Impact of Regulatory Quality on Islamic Finance Products and Financial Inclusion in Nigeria (2014 – 2024) (Published)

This study examines the mediating role of regulatory quality on the relationship between Islamic finance products and financial inclusion in Nigeria from 2014Q1 to 2024Q4. The research is motivated by the persistent challenge of financial exclusion in Nigeria and the growing potential of Islamic finance to address this issue. Grounded in the Financial Intermediation Theory and the Institutional Theory, the study utilises the Autoregressive Distributed Lag (ARDL) model to analyse the short-run and long-run dynamics between the variables. The Augmented Dickey-Fuller (ADF) unit root test was initially conducted to establish the stationarity of the variables, revealing a mix of I (0) and I (1) series, which validated the use of the ARDL model. The ARDL bounds test confirmed the existence of a long-run cointegrating relationship. The empirical findings from the ARDL model indicate that Murabaha (MB) and Ijarah (IJ) have a positive and significant impact on financial inclusion in both the short and long run. Crucially, the analysis of interaction terms demonstrates that regulatory quality (RQ) positively influences financial inclusion and significantly enhances the effect of Murabaha and Ijarah. This result strongly supports the Institutional Theory, highlighting the amplifying role of a robust institutional framework. In contrast, Istisna’a (IT) was found to be statistically insignificant, suggesting its limited impact on broad financial inclusion. Based on these findings, the study recommends that policymakers and regulatory bodies in Nigeria prioritize reforms that strengthen the institutional framework for Islamic finance, as this is crucial to unlocking the full potential of products like Murabaha and Ijarah to drive financial inclusion and address the nation’s financial exclusion challenges.

Keywords: Financial Inclusion, Islamic finance products, Nigeria, regulatory quality

Foreign Direct Investment and Infrastructure Development in Nigeria: Assessing Government Capital Expenditure (Published)

This study examines the relationship between Foreign Direct Investment (FDI) and infrastructure development in Nigeria, focusing on government capital expenditure. The research considers FDI inflows, FDI outflows, and remittance inflows as independent variables, while government capital expenditure serves as the dependent variable. Using an ex-post facto research design, the study covers the period from 1991 to 2021, relying on secondary data obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin. A multiple regression analysis was conducted to assess the impact of these financial inflows on capital spending. The findings reveal that FDI inflows (p-value: 0.0055) significantly contribute to increased government capital expenditure, whereas FDI outflows (p-value: 0.4081) exhibit a positive but statistically insignificant effect. Additionally, remittance inflows (p-value: 0.0000) show a substantial positive impact on capital expenditure. These results suggest that foreign investment and remittances play a crucial role in shaping Nigeria’s infrastructure development. Given these insights, the study recommends that the government implement policies to enhance investment attractiveness, particularly by addressing security challenges and creating a stable economic environment. Moreover, initiatives should be put in place to encourage both domestic and foreign investors to engage in infrastructure projects that yield long-term economic benefits.

 

Keywords: FDI inflows, FDI outflows, Foreign Direct Investment (FDI), Nigeria, government capital expenditure, infrastructure development, remittance inflows

Government Expenditure on Internal Security and Sustainable Development Goal 16 (Published)

This study examines the correlation between government expenditure on internal security and battle-related deaths in Nigeria, particularly in light of Sustainable Development Goal (SDG) 16, which promotes peace, justice, and strong institutions. Utilizing data from 2000 to 2022, this research applies a correlational model to analyze the relationship between internal security spending and conflict-related fatalities. Findings reveal a significant positive correlation (0.8538) between security expenditure and battle-related deaths, suggesting that while heightened spending may target conflict reduction, it has yet to achieve a decline in fatalities. The study explores potential explanations for this outcome, including resource allocation toward addressing surface-level symptoms rather than underlying socioeconomic grievances that fuel violence. Additionally, mismanagement and corruption within security agencies, compounded by external pressures like regional instability, are identified as factors that might hinder the effectiveness of internal security expenditure. These findings underscore the necessity of balancing militarized responses with socioeconomic investments to achieve sustainable peace. The study recommends implementing community-centered security initiatives, enhanced training for security forces, and better coordination among security agencies to improve conflict resolution and reduce violence.

Keywords: Conflict Resolution, Government Expenditure, Nigeria, SDG 16, battle-related deaths, internal security, peacebuilding, regional instability, socioeconomic stability, sustainable development goals

Current Liabilities and Financial Performance of Healthcare Firms in Nigeria (Published)

The study evaluated the relationship between current liabilities and financial performance of healthcare firms in Nigeria. The specific objectives of the study are to assess the effect of Trade Payables, Current Tax Liabilities and Short-Term Borrowings on Return on Assets of Healthcare firms in Nigeria. Ex post facto research design was adopted. Data were collected from annual reports and accounts of sampled firms within the industry to test the null hypotheses that selected current liabilities do not affect return on assets significantly. Correlational analysis was the tool of analysis using panel data set covering Fifty (50) observations from Five (5) firms in the Healthcare sector. The findings revealed that Trade Payables (TP) have weak but significant positive relationship with Return on Assets of Healthcare firms in Nigeria with a correlation coefficient of 0.524514 and a p-value of 0.0001. Current Tax Liabilities have weak but significant positive relationship with Return on Assets of Healthcare firms in Nigeria with a correlation coefficient of 0.539686 and a p-value of 0.0001. Short-Term Borrowings have weak but significant positive association with Return on Assets of Healthcare firms in Nigeria with a correlation coefficient of 0.538232 and a p-value of 0.0001. The implication of the findings is that current liabilities such as trade payables, current tax liabilities and short-term borrowings are significant positive determinants of financial performance of healthcare firms in Nigeria. The study therefore concluded that while the observed relationships were statistically significant, the weak correlations suggest that other factors not examined in this study may have stronger association with return on assets of healthcare firms. The study recommends that effective management of trade payables and current tax liabilities is essential for healthcare firms to successfully navigate the tedious regulatory requirements and enhance financial performance. Furthermore, strategic utilization of short-term borrowings would provide healthcare firms with the necessary financial flexibility to support growth initiatives and address short-term funding needs.

Keywords: Current liabilities, Financial Performance, Nigeria, current tax liabilities, healthcare firms, return on assets (ROA), short-term borrowings, trade payables

Financial Innovation and Financial Performance of Nigerian Listed Deposit Money Banks: Evidence from Panel Data Modeling (Published)

This study examined the impact of financial innovation on the financial performance of Deposit Money Banks (DMBs) in Nigeria, utilizing secondary data from 2008 to 2023. This data was sourced from the banks’ annual financial statements and the Nigerian Exchange Group Factbook. Nine banks with international authorization were purposively selected for the study. Financial innovations in the banking sector include automated teller machines (ATMs), point of sale (POS) terminals, internet banking (WEB), and mobile money payments (MOB) transactions, while return on assets (ROA) and return on equity (ROE) were used as measures of bank financial performance. Panel data models were designed and estimated using the Feasible Generalized Least Squares (FGLS) regression technique. The findings indicated that financial innovations positively influenced the banks’ financial performance. However, while ATM and POS transactions significantly impacted the banks’ ROA and ROE, WEB and MOB transactions had no significant impact on the financial performance of the deposit money banks.

Keywords: Deposit Money Banks, Financial Innovation, Nigeria, Return on Asset, Return on Equity, panel data modeling

Environmental Stewardship and Financial Risk Disclosure Industrial Goods Companies in Nigeria (Published)

This study examined the effect of environmental stewardship on financial risk disclosure of listed industrial goods firms in Nigeria. The specific objectives include; to examine the effect of water protection stewardship on financial risk disclosure of listed industrial goods firms in Nigeria; to evaluate how air protection stewardship affect the quality of financial risk disclosure of listed industrial goods firms in Nigeria and to assess the effect of Land protection stewardship on financial risk disclosure of listed industrial goods firms in Nigeria. The study used ex-post facto research design. Findings revealed that; there is a negative and significant relationship between air protection stewardship and the financial risk disclosure of industrial goods companies in Nigeria; there is a positive impact of water protection disclosures stewardship on the financial risk disclosure of industrial goods companies in Nigeria and the result of the analysis showed a beta coefficient of 0.072 for land protection stewardship disclosure. This implies that 7.2% of the variation in financial risk disclosure in the industrial goods companies is accounted for by land protection stewardship disclosures. Based on the findings of the study, it was concluded that the effect of environmental stewardship on financial risk disclosure of the industrial goods companies in Nigeria is significant. Based on the findings of the study, the following recommendations were made; the management of the industrial goods companies should disclose their water protection stewardship activities in their financial statement. This will boast the confidence of all stakeholders in the industrial goods sector; the amount of disclosures on the land protection stewardship activities of the firms should be increased as this will increase the financial risk disclosure of the selected industrial goods firms and the companies should put in place adequate cost control mechanism to ensure air protection stewardship cost does not significantly deplete the financial risk disclosure of the industrial goods firms in Nigeria.

Keywords: Nigeria, environmental stewardship, financial risk disclosure, industrial goods companies

Promoting Global Partnerships for Sustainable Economic Growth in Nigeria: The Nexus Between Sustainable Development Goal 17 and Goal 8 (Published)

This study examines the impact of external debt, foreign direct investment (FDI), and official development assistance (ODA) on Gross Domestic Product Per Capita Growth (GDPPCG) in Nigeria. Using econometric analysis based on annual data from relevant sources, including World Bank and IMF databases, the study employs ARDL regression models to assess the relationships between these financial inflows and economic growth indicators. The findings highlight the significant effect of external debt on GDPPCG, underscoring the importance of prudent fiscal management and sustainable debt practices to direct resources towards productive investments. Conversely, FDI and ODA exhibit non-significant impacts, suggesting challenges in maximizing their contributions to sustainable economic development due to infrastructure deficiencies, regulatory complexities, and governance inefficiencies in Nigeria. Policy recommendations emphasize enhancing debt sustainability through transparent financial governance and strategic investment in infrastructure and human capital. Improving the investment climate for FDI by streamlining bureaucratic processes and offering sector-specific incentives is crucial. Similarly, optimizing the effectiveness of ODA involves aligning aid with national development priorities and strengthening institutional capacities for aid coordination.

Keywords: External Debt, Foreign Direct Investment (FDI), Gross Domestic Product Per Capita Growth (GDPPCG), Nigeria, Official Development Assistance (ODA), Sustainable Development Goals (SDGs), economic growth