Nigeria

Empirical Analysis of Tax Revenue Collection by the Federal Government in Nigeria (Published)

The main objective of this study is to analysis tax revenue collection by the Federal government in Nigeria. The study adopted quantitative research design; the secondary data will be obtained from the FIRS in respect of the total tax revenue collected from the oil and non-oil taxes for the period of 2011-2015. The population of the study is made up of Federal Inland Revenue Services and the sample size is Planning, Reporting and Statistics Departments. The findings from the study revealed that Capital Gains Tax, Stamp Duty, Education Tax and Petroleum Profit Tax are positively significant at 1%, 5% and 10% respectively while Company Income Tax and Value Added Tax are not significant.  However, Company income tax has more total collected revenue than all the remaining variables. Therefore, it is recommended that government should enhance the collection of tax revenue processes and ensure that any deviations from compliance with the laid down rules and regulations are severally dealt with and punished accordingly

Keywords: FIRS, Federal government, Nigeria, Tax Revenue, revenue collection

Corporate Governance and Audit Quality in Nigeria: Evidence from the Banking Industry (Published)

This study examined the relationship between corporate governance and the quality of auditor’s report with evidence from the Nigerian Banking Industry. The research design adopted for this study is the ex-post facto as the research relied on historic data. Eleven (11) deposit money banks quoted on the Nigerian Stocks Exchange were sampled. In testing our hypothesis, the correlation analysis was applied to a dataset covering seven (7) years from 2007 to 2014 that is   the post-corporate governance period. Analysis suggests that while board composition has a negative and insignificant relationship with audit quality, separation of the roles of the CEO from that of the chairman of the board, board size, and composition of the audit committee has positive and significant relationship with audit quality. Furthermore, findings also show that ownership concentration has a positive but insignificant relationship with audit quality. Findings  also show that the strength of the positive linear relationship between the separation of the roles of the CEO from that of the chairman of the board and the audit quality is as high as 0.702377 or 70.23% followed by the relationship between board size and audit quality which stood at 0.452896 or 45.28%. However, the   study thus concludes that effective corporate governance arises out of responsible and simultaneous vigilant actions by the managers, the board of Directors, shareholders and auditors. Good financial Reporting from the external auditors is an important building block of corporate governance because the information provided to the shareholders has to be optimal in terms of cost and benefits. The study also recommends that the relationship between management and shareholders have to be characterized by transparency and fairness.

Keywords: Audit Quality, Board Composition, Board size, Corporate Governance, Nigeria

Effect Of Management Of Receivables Ratio on Corporate Profitability of Industrial/Domestic Products in Nigeria (Published)

This study examines the effect of the management of accounts receivable ratio on the profitability of industrial/Domestic products manufacturing firms in Nigeria.The variables of this study include accounts receivable ratio, debt ratio and sales growth rate. Only secondary sources of data were used for the period 2000-2011. The hypotheses were tested using the multiple regression technique. The results show that accounts receivable ratio, debt ratio and sales growth rate had positive and significant relationship with the profitability of the firms under study 

 

Keywords: Corporate profitability, Industrial and Domestic Products, Management, Nigeria, Receivables Ratio

Does Forensic Accounting Enhance Quality Of Financial Reporting In Nigeria? : An Empirical Investigation (Published)

This study examines the effectiveness of Forensic Accounting in engendering qualitative financial reporting in Nigeria using the banking sector as a reference. The research adopted empirical, survey and descriptive approach. Secondary data for this study were sourced from the annual reports of the chosen banks. Simple five scale binomial ranging from 0-4 were used to analyse the secondary data (financial reporting quality) of the selected banks. Primary data were also sourced to elicit information from accountants using structured questionnaire based on Likert 5-Scale with each containing fifteen questions. A five scale Likert structured questionnaires were administered to a sample size of Two Hundred and Fifty respondents. Respondents were chosen by simple stratification. Pearson’s Correlation Coefficient statistical tool was used to analyse the primary data. The study reveals that the fundamental qualitative characteristics (relevance and faithful representation) of financial reporting accounting and the enhancing qualitative characteristics (understandability) can be significantly enhanced through Forensic Accounting. Analysis of the primary data further attested to the above revelations. To this end, the researcher recommends that relevant regulators of accounting practice in Nigeria such as the Financial Reporting Council of Nigeria and other relevant accounting bodies  should ensure that  forensic accounting be deeply entrenched to enhance the quality of financial statements and indeed  the financial reporting system in Nigeria. Key industrial regulators such as the Central Bank of Nigeria, NDIC, SEC and so on should at regular intervals commission forensic accounting to ensure compliance on the key variables such as relevance, faithful representation, understandability and so on by the annual reports submitted to them by agencies of government and the organised private sector. They should also train and re-train their members on the intricacies of forensic accounting as regards these variables to enhance the utility capital providers and other stakeholders derive from financial reporting in Nigeria.

Keywords: Financial Reporting Enhancement, Forensic Accounting, Nigeria

Efficiency and Accountability of Public Sector Revenue and Expenditure in Nigeria (1970-2014) (Published)

Nigeria is the sixth largest producer of oil and gas in the world, but the average Nigerian on the street is poor and there is poor infrastructure like power supply, roads, hospitals etc. This study examines the efficiency and accountability of public sector revenue and expenditure in Nigeria (1970-2014). Data on total federal government revenue and expenditure, state governments’ revenue and expenditure were collected from Statistical bulletin from the Central Bank of Nigeria from 1970-2014. The results were analysed using relevant statistical tools. The findings reveals that the level of accountability is very poor in Nigeria because the attributes of accessibility, comprehensiveness, relevance, quality, reliability and timely disclosure of financial information, social and political information about government activities are completely non available or partially available for the citizens to assess the performance of public officers mostly the political office holders. Conclusively and evidently the study has revealed that there is significant relationship between efficiency of public sector expenditure, recurrent expenditure and capital expenditure in Nigeria from 1970-2014. On the basis of these, the paper recommends among others that for accountability to be successful in the management of public funds in Nigeria there must be a reduction in the level of corruption, improving public sector accounting and auditing standards, legislators as champions of accountability and restructure the public accounts committees and the value of money must be applied in the conduct of government business.

Keywords: Accountability, Financial Reporting, Financial Resources, Management, Nigeria, Public Finance, Public Sector Accounting

Analysis of the Relationship between Human Capital Development and Economic Growth in Nigeria (Published)

This research examined the effect of human capital development on the growth of Nigeria economy. The objectives of the study include to: (i) determine the extent to which significant long-run relationship exist among the human capital development and economic growth in Nigeria, (ii) determine if expenditure on education has significant effect on economic growth in Nigeria, (iii) investigate if expenditure on health has significant effect on economic growth in Nigeria. Using co integration techniques to investigate the effect of human capital development and economic growth in Nigeria, we obtained the following results. (i) there is significant long-run relationship between human capital development and economic growth in Nigeria. This is confirmed by the Johansen co-integration. (ii) It was estimated from the VECM, 1% increase in the government expenditure on education (TEDU), on the average led to 23.8% increase in GDP while. 1% increase in the government expenditure on health (THEA) caused 37.6% decrease in GDP. (iii) The two variables as human capital development factor were found to have significant effect on economic growth. However, government expenditure on education has positive relationship with GDP. This implies any increase in expenditure on education contributes positively to the growth of the economy. Based on the findings, the policy implications are in three directions (i) to retain the continuous long run relationship with GDP and human capital development, effort should be made to harmonize the activities in the health and education sector with much attention on funding. The harmonization of the activities in these two sectors will have long run effect on the economy. (ii) as one of the factors of human capital development, government expenditure on education was found to have positive effect on the economy. In the light of this, government should try as well to meet up with world standard benchmark on education expenditure in the annual budget. In so doing, this will improve on the economy. (iii) government expenditure on health was found to have negative effect on the economy. Therefore, effort should be made by government to address the agitations by the health workers which always make them to resort to frequent strike actions. If these worrying issues are addressed, the instability experienced in the health sector will be solved. This will go the long way promoting the economy. More so, efforts should be made to equip our health sector so that capital flight in the name of foreign medical treatment is reduced.

Keywords: Government Expenditure on Education, Government Expenditure on health, Human Capital Development, Nigeria

Dividend Payout Pattern: Nigeria Deposit Money Banks in Perspective (Published)

Investors invest their money with the hope to have returns that could improve their welfare in future. Dividend is one of those expectations that investors hope to get as a result of their investment. A Company pays dividend in order to encourage further investment for growth. However, the degree and extent by which dividend is made depend on the organization management decision. There has been contradicting arguments on firms dividend payout ratio such as rightist, leftist and the middle of the road hypothesis on whether firms should pay dividend or not. Hence there has not been any conclusive study on the factors that determine the dividend growth pattern of Deposit Money Banks in Nigeria. It is this perceived gap that informs the empirical analysis of growth pattern of dividend payout of quoted banks in Nigeria. The study relies majorly on secondary data sourced from the financial report of seven (7) quoted banks in the Nigeria Stock Exchange. It was found that all the explanatory variables (inflation, share price and earnings per share) have significant impact on dividend payout. The study recommends that deposit money banks in Nigeria should improve on their performance so as to increase earnings which will go a long way in determining the Dividend Payout Pattern of their banks while government should makes both investment and production environment suitable for banks to produce locally and avoid much importation to control inflation.

Keywords: Banks’, Dividend Payout Pattern, Inflation, Investment, Nigeria

Implications of Government Capital Expenditure on the Manufacturing Sector in Nigeria (Published)

Theoretically, both Keynesian and neoclassical economists provided tools for government’s intervention, particularly with regard to government capital expenditure. The aim of this project work is to investigate the effect of government capital expenditure on the manufacturing sector output in Nigeria. The study used quantitative time series data and multiple regression techniques in the analysis. The result of the co-integration test indicates long run relationship between dependent and independent variables. It also reveals that capital expenditure on road infrastructure (CEXR) and telecommunication (CEXT) affects the manufacturing sector output in Nigeria significantly while government capital expenditure on power has insignificant effect on manufacturing sector in Nigeria. The implication of this is that manufacturing sector output is clearly affected by factors both exogenous and endogenous to the government capital expenditure in Nigeria. We therefore recommend that, there is need for government to reduce its budgetary allocation to recurrent expenditure on power sector and place more emphasis on the capital expenditures so as accelerate economic growth in Nigeria through manufacturing sector output and that government should also increase spending on road infrastructure, particularly on capital budgeting. As our results showed, road infrastructure capital expenditure has the greatest impact on the long-run with manufacturing sector output in Nigeria

Keywords: Manufacturing sector, Nigeria, Output, Power Sector, Road Infrastructure, Telecommunication

Corporate Taxation and Foreign Direct Investment in Nigeria (Published)

This study examined the relationship between corporate taxation and foreign direct investment in Nigeria from 1970-1980. The annual reports were sourced from the CBN statistical bulletin, NBS and World Bank which were analyzed using Descriptive Statistic, correlation and regression. The independent variable corporate taxation was measured using corporate tax rate (CTR) whilst dependent variable foreign direct investment was measured using FDI net inflow (% of GDP). GDP, exchange rate and inflation rate were used as control variables. The result showed negative significant relationship between CTR and FDI whilst exchange rate and FDI indicated negative insignificant relationship. However, GDP was positively insignificantly related with FDI whilst inflation had positive significant relationship with FDI. Based on the findings, the study recommended that there is need for the government to lo reduce corporate tax rate in order to attract FDI into the country.

Keywords: Corporate Taxation, Foreign Direct Investment (FDI), Nigeria

DOES EARNING PER SHARE DETERMINE MARKET PRICE OF ORDINARY SHARES? EVIDENCE FROM NIGERIA BANKING SECTOR (2000 – 2013) (Published)

The study aims at examining the magnitude and nature of the relationship between earnings per share and market price of ordinary shares in Nigeria banking industry from 2004 to 2013. In addition, it aims at ascertaining the impact of earnings per share on prices of ordinary shares in Nigerian banking industry. Ordinary least squares method in the form of multiple regression was applied in the analysis. Stationarity test was conducted using the Augmented Dickey- Fuller (ADF) and Phillip Perrons (PP) tests. The result reveals that earnings per share significantly and positively influence the market price of ordinary shares; with a strong and positive association too. Earnings per share also granger causes market price of ordinary shares and these characteristics are sustainable in the long run in Nigerian banking sector. The implication of the findings is that an increase in earnings has the tendency of increasing significantly the market price of shares and earnings per share is one of the key factors responsible for fluctuations in market price of ordinary shares in Nigerian banking sector. Therefore, it is pertinent for banks targeting the enhancement of their equity price to adopt workable strategies towards attracting more deposit, increasing their lending, reducing their expenditure profile and opening up other investment avenues to improve upon their earnings.

Keywords: Banks’, Earnings, Granger, Nigeria, Regression, Shares