Nigeria

Integrated Reporting and Implications for Accounting Curriculum in Nigeria (Published)

Integrated reporting (<IR>) has been promoted by influential international organisations as the communication vehicle that provides concise, future-oriented and strategically relevant information and integrates financial, social and environmental elements to providers of the capitals and other interested parties. Increasing adoption of <IR> globally envisages significant implications for accounting education and the accounting curriculum, for both professional and academic training necessary for the “new” corporate reporting protocol. This paper reviews integrated reporting literature to access the principles and frameworks and outputs articulated by these influential organisations. In view of the suggested reporting outcomes, fundamental guiding principles and the main components of an integrated report, it is envisaged that the “new” accounting curricula would focus more on the longer-term than the shorter-term, more on corporate strategic outlook than operational or transactional processes; more prospective rather than retrospective analysis and reporting on wider business performance metrics than on narrower external financial reporting data or audit compliance. While leading global professional accountancy bodies (e.g., ACCA & CIMA) have already fully incorporated integrated reporting principles within their curriculum at the professional level, only few universities outside Nigeria have incorporated integrated reporting principles or learning outcomes within their existing curriculum. The paper calls on Accounting Departments of universities to incorporate <IR> principles into their course offerings.

Keywords: Accounting Curriculum, Nigeria, Social Responsibility, Stakeholder Engagement, Sustainability, integrated reporting

Financial Sector Development and Poverty Reduction Nexus: Evidences from Nigeria (Published)

Previous studies have examined the effect of financial sector development on poverty reduction. This study is unique by adopting the UNDP broader measure of well-being, the Human Development Index (HDI) to provide an argument for financial sector development process and poverty reduction interrelationship in Nigeria for the period 1988-2017. Stationary properties of the series were tested by the ADF unit root test. The paper uses the Johansen Co-integration test to examine the existence of long run relationship among the variables. Generally, it was found that financial sector development has both positive and significant relationship with HDI used as proxy for poverty level. The result also indicates a significant positive relationship between aggregate credit (AGC) and HDI. This shows that financial sector development which manifests in the ability of the banking sector to facilitate borrowing and investment in income earning assets, and stimulate the private sector, in particular, small and medium scale enterprises (SMEs), impacts positively on HDI. Finding also shows that aggregate deposit (AGD) (deposit opportunities available to deposit money banks) is negatively related to HDI and significant. This perhaps suggests that the volume of deposit mobilization by deposit money banks in Nigeria is relatively low to what is needed to transform the economy as well as the standard of living of the people. Realising that Human development is a desideratum and sacrosanct in poverty reduction, the objectives of policies aimed at further strengthening the banking sector should be people focused. 

Keywords: Deposit Money Banks, Human Development Index, Nigeria, Poverty Reduction, financial sector development

Effects of Financial Innovations on the Profitability of Deposit Money Banks in Nigeria (Published)

This study examined the effects of financial innovation on the profitability of deposit money banks in Nigeria. the general purpose of the study was to examine the effect of financial innovation on the profitability while the specific objectives was to examine the effect of  automated teller machine, electronic fund transfer,  internet banking, mobile banking and investment on information  communication technology on return on equity of deposit money banks.   The study formulated four hypotheses and used panel data regression to analyze the secondary data extracted from the annual reports and accounts of the fourteen firms for the period 2009 to 2017. Return on equity was the dependent variables while automated teller machine, electronic fund transfer, internet banking, mobile banking and investment on information communication technology on return were the independent variables. Findings of the study revealed that automated teller machine and electronic fund transfer have negative relationship with return on equity while    internet banking, mobile banking and investment on information communication technology have positive relationship with return on equity. The study recommends that deposit money   banks should adopt financial innovations, deposit money banks invest in technological innovations and banks should transform banking service by adapting to mobile banking and agency banking so that not only to providing jobs but also increase market share.

Keywords: Banks’, Deposit, Money, Nigeria, Profitability, financial innovations

Working Capital Management Firm Liquidity and Stock Market Seasonality: Evidence from Nigeria (Published)

This study examines the relationship between Working Capital Management Firm Liquidity and Stock Market Seasonality among quoted firms in Nigeria. Six hypotheses were formulated following the dependent variable of Stock Market Liquidity. The independent variables employed for this study include: Liquidity Ratio, Account Payable Day, Account Receivable Day, Inventory Day, Firm Leverage and Firm Size. This study is based on ex-post facto research design and employed a panel data set collected Fifty (50) non-financial companies over an eight year period ranging from 2011 to 2018 financial year.  We analyzed the data set using descriptive statistics, correlation and Panel Ordinary Least Square Regression Analysis. Our finding lends credence to the efficient market theory which holds that share markets prices are unpredictable and as such cannot be forecasted. Specifically, the finding suggests that market liquidity cannot predict stock market returns irrespective of the season of the year. Hence, we carefully hold that the stock market in Nigeria is efficient due to its randomness and will rapidly respond to any information or anomalies presented to it. The study recommends among others that policy makers in emerging markets such as Nigeria should ease entry barriers for prospective firms so as to enhance liquidity. The study further recommends that, proper inventory management system should be put in place in order to avoid working capital mismanagement.

Keywords: Firm, Liquidity, Management, Nigeria, Stock Market, Working capital., seasonality

Effect of Corporate Attributes On Environmental Disclosure of Listed Oil and Gas Companies in Nigeria (Published)

This study investigates the influence of corporate attributes on environmental disclosure by oil companies in Nigeria. The study uses secondary data collected from the annual reports and accounts of 9 randomly selected oil companies for the period 2011 to 2017. The study analysed the data using the logistic regression technique. The study finds that corporate attributes significantly affect the environmental accounting disclosure by oil companies in Nigeria. Based on the findings, the study concludes financial leverage has a significant positive effect on environmental accounting disclosure by oil companies in Nigeria. Second, profitability has a significant positive effect on environmental accounting disclosure by oil companies in Nigeria. Third, the study also find that firm size has a significant positive effect on environmental accounting disclosure. Fourth, the study finds a positive but insignificant effect of auditor types on the environmental accounting disclosure by oil companies in Nigeria. The study recommends that the regulators of the oil companies in Nigeria should encourage the use of more debts in the oil companies’ capital structure, which will make them disclose more information about the environment based on the close monitoring and demand by the debt holders.

Keywords: Environmental Disclosure, Nigeria, corporate attributes, listed oil and gas companies

Mandatory Environmental Disclosures by Companies Complying With IAS/IFRS: A Case of Nigeria (Published)

The Report of the Vision 2020 Committee set up to provide a roadmap that will propel Nigeria among the top 20 world economies by 2020 acknowledged that the country is faced with many environmental problems such as the continuous exploitation of marginal lands, drought and desertification in the north, severe gully erosion in eastern and northern states, uncontrolled logging with inherent problems of the destruction of bio-diversity, inappropriate agricultural practices, destruction of watershed, destruction of vast agricultural lands, creation of burrow pits due to bad mining practices and road works, oil pollution from spillage and gas flaring, urban decay and squatter settlements, industrial pollution and municipal waste generation among other things. In view of the above, this paper examines mandatory disclosure of environmental accounting by companies complying with IFRS/IAS in Nigeria. Contents analysis research design was adopted by reviewing the available literature in the field of this study. It was discovered that Nigeria was facing with challenges of inaccurate data, incompetent manpower, and lack of transparency among companies. Despite these shortcomings Mandatory reporting present several advantages such as the creation of standardized and comparable measures that enable benchmarking and best practices among companies complying with IFRS/IAS in Nigeria. It was concluded that aside from complying with IFRS/IAS, Incentives and enforcement was also identified as a factor for full convergence and comparability among companies.

Keywords: Companies, IAS, IFRS, Nigeria, environmental disclosures

Board Meetings and Financial Performance of Insurance Companies in Nigeria (Published)

This study examined the impact of board activism on performance of quoted insurance companies in Nigeria. The study evaluates the effect of board meetings on the financial performance of 15 listed insurance companies existing on the Nigeria stock exchange between the period 2006-2017.Panel data regression and descriptive analysis was used to analyze the data obtained from the annual report of the sampled companies. The result of the study revealed a negative relationship with no significant impact between the board meeting and performance of insurance firms in Nigeria with emphasis on Return on Equity, Return on Asset and Tobin’s Q. It was suggested that regulatory authority focus their attention more on the skill and experience of directors at meeting of the board for good performance.

 

Keywords: Board, Insurance, Meetings, Nigeria, Performance

International Financial Reporting Standard (IFRS) Adoption and Revenue Generation: A Descriptive Study of Nigeria and Ghana (Published)

Years after the inception of International Financial Reporting Standards (IFRS), most countries of the world now permit its utilization in their countries including West Africa countries such as Nigeria and Ghana. However, some countries of the world still have not subscribed to the IFRS situation. It is thus necessary to examine the situation of things with the countries that have adopted to know if the adoption has contributed to their growth favourably or adversely. This study adopted expost facto research design to examine how IFRS has influence Revenue base of the selected countries (Nigeria and Ghana). The study concludes that it is in the best interest of developing countries to adopt IFRS. The IFRS ship is already making its way around the world as a single set of high quality global accounting standards and also facilitating revenue flow into the country. Therefore, the earlier other countries come on board, the better for them.

Keywords: Adoption, Ghana, International Financial Reporting standard, Nigeria, Revenue Generation, descriptive study

Effects of International Public Sector Accounting Standards on Financial Accountability in Nigeria Public Sector (Published)

The study examined the effect of International Public Sector Accounting Standards on financial accountability in the Nigerian public sector. Specifically, the study investigated the effect of International public sector accounting standards on the efficient management of public fund in the Nigerian public sectors and assessed the extent to which international public sector accounting standards enhance effective budget implementation in the Nigeria public sector. The population of the study comprises of all the staff in internal audit department, accounting department and finance department of the 18 Local Governments in Ondo State. Questionnaire was used to gather information from the selected respondents in the departments. The questionnaire was ranked using five-point Likert scale. The study employed Multiple Regression Analysis and Pearson’s Correlation Matrix to identify the effect of the effect of International Public Sector Accounting Standards on financial accountability in the Nigerian public sector. The study revealed that International Public Sector Accounting Standards has positive and significant effect on the efficient management of public funds in the Nigerian Public sector. The study recommended that the federal government should release fund to power the adoption IPSAS and made fund available for training of civil servants on International Public Sector Accounting Standards software.

Keywords: Accounting Standards, Financial Accountability, International, Nigeria, Public Sector

Adoption of International Financial Reporting Standards in Nigeria: A Conceptual Appraisal (Published)

A recent reality of globalization is the harmonization of accounting standards. Accounting is said to be the language of business; if this assertion holds true, then the move by the International Accounting Standards Board (IASB) to harmonise accounting standards used in the preparation of financial statements across the world is a move in the right direction. This study examined the adoption of International Financial Reporting Standards (IFRS) in Nigeria with particular emphasis on the prospects and challenges of IFRS adoption in Nigeria. The major objective of the study was to identify the benefits and challenges of adopting International Financial Reporting Standards (IFRS) in Nigeria. The descriptive research design was used in the investigation that led to the production of this paper. Data were initially collected through review of existing literature and thereafter through questionnaire administration and personal interviews. Tables and percentages were used in summarizing data obtained. Based on the results of the study, it was found that adoption of International Financial Reporting Standards (IFRS) in Nigeria will help Nigeria and Nigerian corporations, among other benefits, secure access to global capital markets. Thus, the study concluded that Nigeria will benefit to a significant extent from the adoption of IFRS. One of the recommendations made was that Government at all levels, financial regulatory agencies, professional accountancy bodies, private and public companies and institutions, and accountancy firms should fast-track IFRS education in order to boost the acquisition of IFRS knowledge and competences.

Keywords: Adoption, Appraisal, Financial, International, Nigeria, reporting standards