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Author(s):
Editor in Chief.
Page No :
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African Journal of Accounting and Financial Research, Volume 7 Issue 3, Cover Page
Abstract
African Journal of Accounting and Financial Research, Volume 7 Issue 2, Cover Page
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Author(s):
Olusola James Oladejo.
Page No : 1-20
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Effect of Federal Government Tax and Non-Tax Revenue on Economic Growth in Nigeria.
Abstract
The aim of this study was to examine the impact of federal government tax and non-tax revenue on economic growth in Nigeria. The study employed an ex post facto design and focused on the Nigerian economy as a whole, making the population and sample size one. Secondary sources were used to gather data, primarily from the annual reports and statistical releases of the CBN and the Office of the Federal Inland Revenue Service (FIRS). The study covered a ten-year period from 2001 to 2020. Data analysis was conducted using simple linear regression to test the hypotheses. The results of the regression analysis indicated a significant impact of federal government tax revenue on economic growth. The F-statistic was 466.0399, the P-Value was 0.000, and the R-squared value was 0.962813, suggesting that approximately 96.28% of the variation in real GDP can be explained by tax revenue. Similarly, the analysis revealed a significant effect of federal government non-tax revenue on economic growth. The F-statistic was 201.5388, the P-Value was 0.000, and the R-squared value was 0.918010, indicating that approximately 91.80% of the variation in real GDP can be explained by non-tax revenue. Furthermore, there was a significant impact of federal government total revenue on economic growth. The F-statistic was 469.5482, the P-Value was 0.000, and the R-squared value was 0.963081, suggesting that approximately 96.31% of the variation in real GDP can be explained by total tax revenue. These findings underscore the crucial role of tax and non-tax revenue, particularly from the federal government, in promoting economic growth. To enhance revenue generation, the government should prioritize improvements in tax administration and compliance. This can be achieved through the implementation of effective tax policies, simplified tax procedures, and robust monitoring and enforcement mechanisms. Additionally, diversification of non-tax revenue sources beyond oil is recommended.
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Author(s):
Onyali Chidiebele Innocent, Okerekeoti Chinedu Uchenna.
Page No : 21-39
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Corporate Financial Heterogeneity and Environmental Disclosure of Listed Oil and Gas Firms in Nigeria.
Abstract
The study examined the effect of financial heterogeneity on environmental disclosure of listed oil and gas firms in Nigeria. Specifically, the study ascertained the effect of total assets, total sales and financial leverage on waste management disclosure of listed oil and gas firms in Nigeria. Ex-post facto research design was used for the study and the population of the study comprised all the listed oil and gas firms on the Nigerian Exchange Group as at 31st Dec 2023. However, based on the use of purposive sampling technique, Six (6) listed oil and gas firms were chosen as the sample of the study based on the criteria of attainment of at least 10 consecutive years of listing on the Nigerian Exchange Group and on the availability of data. Secondary data were collected from the annual financial reports of the selected firms for the period 2012 to 2021 and Descriptive statistics was used to summarize the data collected. Panel regression analysis was used to analyse the data via E-Views statistical software, version 10. The result of the analysis revealed that while total assets have a significant and negative effect on waste management disclosure of listed Oil and Gas companies in Nigeria, total sales and financial leverage have a significant positive and non-significant positive effect respectively on waste management disclosure of listed Oil and Gas firms in Nigeria. Based on the findings, the study concluded and recommended amongst others that firms should consider leveraging their finances to support waste management initiatives as this can not only enhance their disclosure practices but also reduce their environmental footprint and improve their long-term financial performance.
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Author(s):
Samuel Ngozichikanma Nwosu, Uduimoh Anthony Akwawa, Nkama Orji Nkama.
Page No : 40-54
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Accountability, Probity, Transparency and Good Leadership in Public Sector Promote Societal Development.
Abstract
Projecting accountability and probity and good leadership in the management of public sector activities are part of every public official's duty to adopt processes, practices and behavior that enhance and promote public sector values and interests that will enhance societal development. Thus, the objective of this study is to examine accountability and probity: necessity for good leadership and societal development. How Nigeria fares. In order to achieve this objective; primary data were gathered through field trips from the use of well structured questionnaire. The study employed descriptive survey method as the research design. Data were presented in a simple descriptive format using frequency tables and were analyzed using mean and pearson Chi-square contingency test with statiscal tool (SPSS version 22). The findings revealed that the weakness in law enforcement and punitive measures in curbing corruption and reducing the incidence of mishandling of public resources are a common occurrence noticed in Ministries, Departments and Agencies (MDA). It also recongnized that despite good management of probity, mistakes, delays and disputes can arise and affect fund and resource management in public organizations. However, the study recommends that the government should be more active in imposing greater accountability and probity in the management of public fund. There is need for more pro-active measures not only to sustain it but to re-invigorate it to ensure that things are properly done and public funds and resources are not just being embezzled in a rather reckless manner.
KEYWORDS: Accountability, Probity, Resource management, Public sector, Corruption
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Author(s):
Samuel Ngozichikanma Nwosu, Remigius Chinwoke Ejinkonye, Uduimoh Anthony Akwawa.
Page No : 55-70
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Internal Controls, Frauds in the Nigerian Banking Industry.
Abstract
The study examined management of fraud and internal controls in the Nigerian banking industry. Two research hypotheses were raised. The study employed descriptive survey method as the research design. Data used for this study were collected mainly from both primary sources. The data collected through the use of questionnaires were analyzed using Pearson Chi-square contingency test with the SPSS statistical tool (SPSS version 22). The findings revealed that in most banking industries today, fraud is seen as a normal thing that cannot be avoided, prevented or even detected. Proper steps have been totally ignored. Fraudulent activities affect the organization, the employees, their family and subsequently the economy. It can be deduced that there are control measures that can greatly help if applied properly and effectively. This can help put fraud in control and even detect all fraudulent activities. The study recommended that banks should ensure that there should be an appropriate authorization and approval by the opposite person of all transactions of the operations of the bank. Banks should make sure there are adequate supervisory controls by the management . These are the controls exercised by management outside the day-to-day routing of the system.
KEYWORDS: Banking Industry, Fraudulent Activities, Adequate Supervision, Managerial controls and Internal Control.
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Author(s):
Ekpe Osim James (Ph.D.), Zeal Emmanuel Oriakpono, Imade Emmanuel Oriakpono.
Page No : 71-84
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Customer Care-Specific Attributes and The Performance of Quoted Deposit Money Banks in Nigeria.
Abstract
This study assesses the relationship between Customer care-specific attributes and the Customer growth of quoted deposit money banks in Nigeria. In this study, a cross-sectional survey, which is a quasi-experimental method, was employed. This study encompasses the entire Survey Respondents of 105 sample staffs and their bank customers of the 14 quoted money deposit banks in Nigeria, serving as the accessible population for the study. Data Collection Method was Primary Data Collection designed questionnaire. The Likert scale, consisting of response options such as Strongly Agree, Agree, Disagree, and Strongly Disagree, was employed. The study used Spearman's rho correlation to observed the statistical significance at 1% level. The result showed that p-values for all correlations are highly significant (p < 0.01), suggesting strong evidence that these relationships are meaningful. This provides confidence in the model's fitness in terms of statistical significance. In the given results with the highest being between customer growth and the number of financial products (0.494), indicating a moderate positive relationship. The coefficients show the strength of the relationships, with high values indicating stronger associations. The model's relationships are robust and not due to random chance, indicating good fitness. It was recommended that bank should ensure that customer service personnel are accessible, responsive, and effective by investing in convenient customer service channels. Regularly provide training and development opportunities for bank customer service personnel to ensure they can handle customer inquiries and issues effectively. Recognize and reward the efforts of bank customer service personnel with fair and competitive salaries and benefits to motivate and retain top talent. Diversify the range of financial products offered by banks to meet varying customer needs and attract a broader customer base.
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Author(s):
Mafiana Ijeamaka, Ebiaghan Frank Orits.
Page No : 85-98
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Sustainability Disclosures and the Performance of Listed Manufacturing Companies in Nigeria.
Abstract
The study investigated the effect of sustainability disclosure on the performance of publicly listed manufacturing companies in Nigeria using ex-post facto research design. A sample of twenty (20) publicly listed manufacturing companies was obtained and secondary data were computed from the annual reports and accounts of the companies from 2013-2022. Data obtained were analyzed by means of descriptive, post-estimation and inferential statistics. Findings of the multivariate regression result revealed that financial performance (return on assets and return on equity) are not significantly affected by the level of sustainability disclosure. Based on the findings, it was recommended that management of publicly listed manufacturing companies should gear efforts toward enhancing disclosure on sustainability (in particular, index of sustainability reporting); this may further strengthen their financial performance level. In addition, management of publicly listed manufacturing companies should determine measures of sustainability disclosure affecting performance the most and focus more on them; this study contributes to knowledge by filling the gap in the literature on the relationship between sustainability disclosure and financial performance of listed manufacturing companies in Nigeria.
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Author(s):
Olayemi Oluseyanu Olamide , Onaolapo A. R., Fasina H. T..
Page No : 99-116
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Accounting Information System and Financial Reporting Quality of Quoted Service Companies in Nigeria.
Abstract
AIS is seen as significant organizational mechanism but it can only be of benefits to organizational operations, including the Quality of Financial Reporting (QFR) produced if the right factors are well integrated and operated harmoniously. Therefore, the study examined AIS and QFR of listed service companies in Nigeria. The study adopted cross-sectional survey research design. Primary data was employed through questionnaire which was administered on 256 respondents. Variables used included Information Quality (IQ), Service Quality (SERVQ), faithful representation, relevance, understandability and timeliness. The study adopted the use of structural equation modelling for data analysis. The findings revealed that IQ has significant effect on QFR while SERVQ has no significant and negative effect on QFR. It is therefore recommended that organizations should ensure that they maintain good information quality which should start from the point of data collection from different sources to the point of final preparation of the financial reports.
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Author(s):
Halimah Yetunde Nasiru, Moruf Oladehinde Oladejo, Emmanuel. A. Alagbe.
Page No : 117-129
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Determinants of Earnings Response Coefficient in Listed Deposit Money Banks in Nigeria.
Abstract
This paper is set to examine the determinants of earnings response coefficients in Nigerian deposit money banks. Specifically, it examined how a bank’s level of non-performing loans, beta as a measure of market risk, earnings persistence, banks’ growth, and size influence shareholders, investors, and other market participants' investment decisions. An ex-post facto research design was adopted for the study, with secondary data collected from ten deposit money listed on the Nigerian Exchange Group from 2010-2022. Panel Least Square, Breusch Pagan, and LM and Pesaran Cross-Sectional Dependence tests were conducted to enhance the robustness of the analysis. Findings from the analysis revealed that market beta, non-performing loans, banks’ growth, and size were the major determinants of the earning response coefficient in selected listed deposit money banks in Nigeria. Consequently, the study recommends that the management of banks should focus on actively managing market risk, optimizing bank size, and addressing non-performing loans to enhance market confidence and positively influence earnings response. Additionally, attention should be given to strategies promoting sustainable growth that can contribute to favorable market perceptions of earnings declared by banks.
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Author(s):
Ogunmodede Emmanuel Olorunfemi, Aggreh Meshack, Udeh Nnoli Francis.
Page No : 130-148
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Firms Attributes and Sustainability Disclosures: A Study of Sensitive Environmental Sector in Nigeria.
Abstract
This study investigates the impact of firm attributes on sustainability disclosure, focusing on a comparative analysis of environmentally sensitive firms. The specific objective is to ascertain the discrepancy in the influence of firm size on sustainability disclosure within the more environmentally sensitive industry. Employing a longitudinal and ex-post facto research design, the study encompasses a population of one hundred and fifty (150) listed firms in Nigeria. A sample of 20 firms from both financial and non-financial sectors was selected using judgmental sampling technique. Data were gathered from the annual reports and accounts of the chosen firms, as well as the fact book of Nigeria Exchange Group (NGX) spanning from 2012 to 2021. Hypotheses were tested using panel regression and t-test techniques. The key findings indicate a significant disparity in the impact of firm size on sustainability disclosure within the more environmentally sensitive industry (P = 0.0002). In conclusion, the adoption of sustainable development strategies by a company reflects management's consideration of various stakeholders' perceptions. The study recommends that regulators prioritize environmental and social issues to foster sustainable practices, particularly through increased disclosure of environmental, social, and governance factors.
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Author(s):
Akinyemi Ariyo Julius, Nwankor A. Mentor, Oyedare Ebenezer Oyedele.
Page No : 149-159
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Effect of Tax Incentive on Compliance in Nigeria of Listed Food and Beverages Firms in Nigeria.
Abstract
This study investigates the impact of tax incentives, specifically rural investment allowances and pioneer status, on compliance among listed food and beverage firms in Nigeria. Using regression analysis, we found that rural investment allowances significantly enhance compliance, explaining 97.8% of the variance, while pioneer status shows a non-significant impact. The findings highlight the importance of targeted tax incentives in promoting regulatory adherence and economic development. Recommendations include enhancing rural investment allowance programs, leveraging incentives for operational efficiency, and reevaluating the pioneer status framework to ensure effectiveness in encouraging compliance and investment. These insights offer valuable guidance for policymakers and businesses.
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Author(s):
Oluwagbenga David Adekunle, Oluwatosin C. Fasusi, Abdullahi Oke.
Page No : 160-175
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Monetary Policy and Financial Performance of Listed Deposit Money Banks in Nigeria
Abstract
The study examines the relationship between monetary policy rates and financial performance of listed Deposit Money Banks (DMBs) in Nigeria between 2013 and 2022. The study took a sample of the five largest banks in the country which includes First Bank, United Bank for Africa, Guaranty Trust Bank, Access Bank and Zenith Bank colloquially known as the FUGAZ being an acronym of the first letters of their names. The study therefore measured bank financial performance by net income and loan to deposit ratio while the monetary policy variables include interest rate, inflation rate, cash reserve ratio, exchange rate and liquidity ratio. The results therefore revealed that while cash reserve ratio had a positive effect on net income, all other variables had an insignificant effect on net income. On the other hand, while interest rate had a positive effect on loan to deposit ratio, liquidity ratio had a positive effect on loan to deposit ratio while other variables had no significant effect on loan to deposit ratio. Thus, it is therefore recommended that cash reserve ratio, interest rate and liquidity ratio should be considered as front burner issues in monetary policy formulation as they affect performance of banks mostly
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Author(s):
Kupoluyi J. O., Adeyemi O. O., Omidiran O. E..
Page No : 176-187
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Indirect Taxes and the Financial Performance of Listed Consumer Goods Firm in Nigeria.
Abstract
This study investigates the impact of stamp duties (STD) and value added tax (VAT) on return on assets (ROA) and return on equity (ROE) using regression analysis on a dataset spanning the past decade from Nigerian consumer goods firms. The findings reveal that STD and VAT insignificantly influences ROA, suggesting that variations in STD and VAT rates and policies directly affect a firm's profitability from its assets. In contrast, both STD and VAT show significant effects on ROE, indicating that these taxes directly impact the return generated from shareholders' equity. These results underscore the importance of strategic tax planning tailored to different financial metrics to optimize financial performance and inform policymakers on designing tax policies that balance revenue generation with business sustainability. It is recommended that companies should develop and implement robust tax planning strategies to optimize their tax liabilities. This involves staying informed about current and upcoming tax regulations, seeking professional tax advice, and utilizing available tax incentives and reliefs.
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Author(s):
Momodu George Idowu, Akinrujomu Fayokemi Toluwani, Osuwah Obinna Collins, Ononiwu Onyedikachi Ngozi.
Page No : 188-206
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Accountability and Economic Development in Nigeria.
Abstract
This study sought to examine the accountability and economic development in Nigeria. Specifically, the study determined the effect of accountability on the level of gross domestic product in Nigeria and evaluated the effect of accountability on the level of public capital expenditure in Nigeria. Ex-post facto research design was employed, and data was gathered from the World Development Index (WDI) and Central Bank of Nigeria (2014-2023). In order to evaluate the analysis, two hypotheses were tested using an auto-regressive distributed lag approach. The findings revealed that there is a significant negative correlation between accountability and GDP growth as well as public capital expenditures in Nigeria. The study therefore concluded that the only hope for economic development in Nigeria is the complete eradication of corruption at all levels. It was recommended that the immunity clause in the Nigerian constitution should be removed as ICPC and EFCC have become toothless bulldogs to bring to the public notice the financial crimes in the public offices. Similarly, strict policies are needed to curtail corruption practices in public offices. Corruption has denied the huge investments (GCF) and there is no corresponding positive effect on the Nigerian economic development.
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Author(s):
Jimoh Tajudeen Shola , Adesina Omolola Kafayat.
Page No : 207-214
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The Impact of Direct Taxes on the Financial Performance of Listed Consumer Goods Firms in Nigeria.
Abstract
This study investigates the relationship between direct taxes and the financial performance of listed consumer goods firms in Nigeria. Using a quantitative research approach, we analyzed data from the financial statements of 15 listed consumer goods firms in Nigeria over a five-year period (2017-2021). Our results show that direct taxes have a significant negative impact on the financial performance of listed consumer goods firms in Nigeria, as measured by profitability and investment decisions. Specifically, we found that:
A 1% increase in direct taxes leads to a 0.8% decrease in profitability
A 1% increase in direct taxes leads to a 0.6% decrease in investment decisions
Our findings suggest that policymakers and regulatory bodies should consider reducing direct tax rates to improve the financial performance of listed consumer goods firms in Nigeria.
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Author(s):
Onyali Chidiebele Innocent, Ukoh Uzoamaka Maureen, Okerekeoti Chinedu Uchenna.
Page No : 215-235
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Determinants of Social Responsibility Costs of Listed Manufacturing Firms in Nigeria.
Abstract
The study ascertained the determinants of social responsibility costs of listed manufacturing firms in Nigeria. Specifically, the study determined the relationship between firms' total assets and community development cost; total sales and staff development cost; total equity and public utility cost respectively of listed manufacturing firms in Nigeria. The population of the study comprised all the 21 listed consumer goods manufacturing firms in Nigeria. Purposive sampling was applied in selecting the 15 consumer goods firms that made up the sample size for the study. Secondary data were collected from the annual reports of the sampled firms over a ten year accounting period which spanned through 2013 to 2022. The Pooled Ordinary Least Square regression was used in testing the hypotheses. Findings of the study indicated that: there is a significant positive relationship between firms' total assets and community development cost of listed manufacturing firms in Nigeria (p-value = 0.0059); there is significant positive relationship between firms' total sales and staff development cost of listed manufacturing firms in Nigeria (p-value = 0.0000); there is positive but non-significant relationship between firms' total equity and public utility cost of listed manufacturing firms in Nigeria (p-value = 0.7002). Based on the findings, it was generally recommended in the study that firms should prioritize their investment in social responsibility as their financial metrics progresses so as to enhance their reputation and strengthen their relationship with their host communities and stakeholders.
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Author(s):
Ransomed Temitayo Modupeoluwa, Obafemi Tunde Olutokunboh (Ph.D.).
Page No : 236-250
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New Technology Audit Techniques on Firm’s Performance: In Selected Firms Oyo State.
Abstract
The globe has seen an exponential rise in technical innovation in the last ten years. As a result of technological advancements in computing, which built on the foundations laid by the digital systems created during the Third Industrial Revolution, computers are now able to manipulate and analyze data more quickly and easily, opening up new applications for emerging technologies (Beata, 2018; Schwab, 2016; Veerankutty et al., 2018). When used in a commercial setting, these cutting-edge technologies could increase productivity and effectiveness (Beata, 2018; Schwab, 2016; Veerankutty et al., 2018).
In order to provide an assurance service that meets their clients' expectations and to enable them to appropriately address the risks associated with their clients' use of more complex technology, auditors will need to adopt these emerging technologies as more businesses use increasingly sophisticated technology (Alles, 2015; Appelbaum et al., 2017). Many audit firms have turned to emerging technologies to improve audit quality and efficiency in the face of pressures facing the audit profession to improve the quality of its services (Botic, 2018; Harris, 2016) and reduce audit fees (Asthana et al., 2018) despite resource and time constraints (Persellin et al., 2019; Ferguson, 2016; Persellin et al., 2019).
The use of new technology audit methodologies has become a crucial tactic for companies looking to improve performance, reduce risks, and stay competitive in the quickly changing business landscape of today (Niaz, 2022). Technology is changing the audit profession, and in order to increase audit quality, efficiency, and effectiveness, businesses are increasingly using cutting-edge technologies and procedures (Lugli & Bertacchini, 2023). The potential for reinventing traditional audit procedures through the integration of new technology audit methodologies lies in the ability for organizations to adjust to shifting stakeholder expectations, regulatory requirements, and market dynamics.
The effective integration of new methodologies into organizations' current audit practices poses both opportunities and problems, notwithstanding the potential advantages of technology-driven audit projects (Perdana, Lee & Kim, 2023). A number of obstacles, including technological complexity, talent gaps, resource limitations, and opposition to change, have been faced by some organizations that have adopted technology-driven audit solutions in an attempt to improve data analytics capabilities, expedite procedures, and fortify internal controls.
Against this backdrop, this study aims to explore the integration of new technology audit techniques and its implications for firms' performance. By examining the challenges, opportunities, and outcomes associated with technology-driven audit initiatives
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Author(s):
Taiwo Omoyin, Sanni Lateef Abiodun, Tejumola Blessing Salome, Umensofor Mercy O..
Page No : 251-269
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Non-Oil Revenue and the Impact on the Economic Development of Nigeria.
Abstract
Nigeria as one of the major oil producing countries in the world has been diversifying into more non-oil revenue while more attention is paid on tax revenue as it has the potential of taking the country to the Promised Land. As a result, the study sought to examine Non-Oil Revenue and the impact on the Economic Development of Nigeria, leveraging on tax revenue for the period 1994–2023. The objectives of the study examined the effect of corporate income tax, capital gain tax, value added tax and customs and excise duties on economic growth. While Tertiary Education Tax, Stamp duty, and Other Levies were used as controlled variables. Data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and Federal Inland Revenue (FIRS) Statistical Reports. While ARDL Regression Analysis was applied to test the hypotheses. The findings revealed that the coefficients of variation for the lag values showed that the RGDP was positively impacted by TDT and CED, while negatively impacted by CIT, CGT, VAT, and SD. The ARDL model's R2 and Adjusted R2 statistics together explained almost 69% of the variation in RGDP, according to the adjusted R2 of 0.518719. This implies that a significant portion of volatility is still unaccounted for despite the model's poor predictive power. The study concluded that the aggregate tax revenue is not showing the hope of taking the country to the promised land, as only two (CED and TDT) showed positive relationship with economic growth of the country. Thus, recommended that the Nigerian government needed to pay more attention to tax income since it has the ability to promote the necessary growth in the nation.
