Malete Journal of Accounting and Finance
Malete Journal of Accounting and Finance (MAJAF) is an interdisciplinary publication of the Department of Accounting and Finance, Kwara State University, Malete Nigeria. MAJAF is a scientific platform for academic discourse and knowledge advancement for all researchers. The Journal is a double-blind peer review, conceived with a view to creating avenue for academics and professionals in the field of Management and Social Sciences spanning across the disciplines of Accounting, Finance, Economics, Management, Marketing, Entrepreneurship, Business Administration, Banking Operations among others, in the dissemination of conceptual, theoretical and empirical knowledge for betterment of humanity at large. The contributions add to the compendium of high-quality research works that do not only contribute to knowledge but also provide technical information and new developments in the fields. The journal is published biannually in June and December.
Department of Accounting and Finance, Kwara State University, Malete
MENTORING, PROACTIVE WORK BEHAVIOR AND EMPLOYEE SKILLS DEVELOPMENT IN ORGANIZATIONS: A SYSTEMATIC REVIEW
The systematic review aims to synthesize empirical and theoretical evidence on the relationship between mentoring, proactive work behavior, and employee skills development in organizational settings. We draw on Gary Becker’s Human Capital Theory (1989), Albert Bandura’s Social Cognitive Theory (1986), and Michael Crant’s Proactive Behavior Theory (2000) to explain how mentoring and proactive behavior interact to enhance workforce skills and competencies. The review adopted PRISMA guidelines to compile, synthesize and analysed peer-reviewed articles published between 2021 and 2025, retrieved from Scopus, Web of Science, and EBSCOhost databases. Following systematic screening and eligibility assessment, 44 studies met the inclusion criteria and were subjected to narrative synthesis. The review found that mentoring significantly enhances employee skills development, self-efficacy, career progression, and organizational productivity. While proactive work behavior emerged as an important behavioral mechanism through which employees transform mentoring support into learning outcomes through feedback-seeking, continuous learning, and adaptive engagement. This review contributes to Industrial and Organizational Psychology (IOP) and Human Resource Management (HRM) by advancing an integrated understanding of mentoring and proactive work behavior as strategic mechanisms for employee skills development.
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ECONOMIC POLICY UNCERTAINTY AND CAPITAL MARKET DEVELOPMENT IN NIGERIA: MEDIATING ROLE OF POLITICAL STABILITY
Global development, government meddling in daily economic affairs, and capital market factors are all to blame for the steady global expansion of economic policy uncertainty (EPU). Economic agents react differently to uncertainty policies, even though they disrupt some sectors. This is especially true when an unexpected shock is present. The study objective is to determine how EPU and capital market development proxied with market size capitalisation relate with mediation of political stability in Nigeria from 1995 to 2024. Yearly data and an expost facto study design were used. Finding revealed that that the money supply, interest rates, crude oil prices, and the economic uncertainty index all had a considerable impact as well as mediating influence of political stability with EPU strongly determined stock market size capitalization. Thus, the study concluded that domestic and foreign investors should varied across sectors and maximum observation should be on the political stability regarding its policies ad institutions so as to lessen quantum of risk exposure from unpredictable economic policies, sharp practices and this will enhance capital market patronage which will boost market size capitalization in the Nigeria exchange group (NGX).
BUSINESS CYCLE, SOLVENCY RISK AND LOAN LOSS PROVISIONING IN NIGERIAN BANKS
This study examined the effects of business cycle conditions and capital adequacy on loan loss provisioning in listed Nigerian deposit money banks over the 2014–2024 period, spanning both the pre- and post-IFRS 9 impairment regimes. A quantitative ex post facto design was adopted using balanced panel data from 12 banks, yielding 132 bank-year observations, and the relationships were estimated with a fixed-effects panel regression model with clustered robust standard errors. Business cycle conditions, measured by annual GDP growth rate, had a positive and statistically significant effect on loan loss provisioning (β = 0.019, p = 0.019), indicating that Nigerian banks provisioned more aggressively during periods of economic expansion — a counter-cyclical pattern that departs from the procyclical behaviour documented in developed banking systems. Capital adequacy ratio similarly had a positive and significant effect (β = 0.025, p = 0.039), consistent with the view that well-capitalised banks are better positioned to recognise credit losses earlier and more conservatively. Non-performing loans were the strongest determinant of provisioning (β = 0.259, p < 0.001), while profitability had a negative but statistically insignificant effect (β = −0.048, p = 0.164). The study concludes that loan loss provisioning in listed Nigerian deposit money banks reflects not only underlying credit risk but also broader macroeconomic conditions and bank capital strength, with provisioning serving both a risk-recognition and a forward-looking balance-sheet management function. Prudential regulators, audit committees, and bank management should give greater attention to the macroeconomic assumptions and capital-related considerations embedded in expected credit loss estimates.
EARNINGS MANAGEMENT AND LOAN LOSS PROVISIONING IN NIGERIAN DEPOSIT MONEY BANKS
This study examined the effect of earnings management incentives on loan loss provisioning in Nigerian deposit money banks listed on the Nigerian Exchange Group over the 2014–2024 period, a timeframe spanning three major macroeconomic disruptions and the transition from IAS 39 to IFRS 9. A quantitative ex post facto design was adopted using balanced panel data from 12 listed banks, yielding 132 bank-year observations. Earnings management incentives were measured through the pre-provision earnings ratio (PPE), and the analysis was conducted using a fixed-effects panel regression model with bank-level clustered robust standard errors, controlling for bank size, post-provision profitability (ROA), and credit risk (NPL). Earnings management incentives had a positive and statistically significant effect on the loan loss provision ratio (β = 0.216, p = 0.002), indicating that Nigerian listed banks with stronger pre-provision earnings recognized higher provisions after controlling for credit risk and other bank characteristics. Non-performing loans were the strongest determinant of provisioning (β = 0.284, p < 0.001), confirming that credit quality remained the primary driver of impairment recognition alongside the discretionary earnings-smoothing motive. Profitability (ROA) was negative but statistically insignificant. The study concludes that loan loss provisioning in listed Nigerian banks serves a dual function, responding legitimately to credit risk while also being shaped by earnings management incentives, consistent with the income-smoothing predictions of Positive Accounting Theory. Prudential regulators should intensify supervisory scrutiny of expected credit loss assumptions during periods of strong pre-provision earnings; audit committees and external auditors should require detailed documentation linking provision changes to concurrent earnings and loan quality; and investors should interpret smooth reported earnings with caution, supplementing headline profit figures with non-performing loan trends and pre-provision earnings disclosures.
ACCOUNTING CONSERVATISM, FIRM CHARACTERISTICS AND PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA
The performance of publicly quoted consumer goods companies in Nigeria continues to attract significant attention due to persistent fluctuations in profitability. Although accounting conservatism is intended to enhance the credibility of financial reports, its influence on firm performance remains uncertain, as existing empirical evidence provides mixed and inconclusive results. This study examined the effect of accounting conservatism and firm characteristics on the performance of listed consumer goods companies in Nigeria from 2014 to 2023. An ex post facto research design was adopted, and secondary data were obtained from the annual reports of 18 consumer goods companies listed on the Nigerian Exchange Group (NGX), representing the entire population of firms in the sector during the study period. Return on Assets (ROA) was used to measure firm performance, while accounting conservatism, firm size, financial leverage, and asset tangibility served as the explanatory variables. The Panel Estimated Generalised Least Squares (PEGLS) technique was employed to analyze the data and address issues of heteroskedasticity and serial correlation. The findings revealed that accounting conservatism had a negative and insignificant effect on firm performance (β = –0.0003, p = 0.8213). Firm size exerted a significant negative effect (β = –0.0671, p = 0.0088), whereas financial leverage had a positive and highly significant effect (β = 0.2789, p = 0.0000). The study reveals that best practices for finance and asset utilization have the most significant impact on a company's success, while accounting practices are not as crucial. It encourages the careful use of debt finance, optimization of processes in large companies and fair distribution of assets to increase profitability and long-term sustainability.
DOES RENEWABLE ENERGY AND EXPORT INFLUENCE ECONOMIC GROWTH IN NIGERIA?
The interconnection amid renewable energy, exports, and economic growth has thus emerged as a primary policy issue. Economic theories posit that GDP is often linked to increasing emissions and exports during the initial phases of development. Sequel to this, this study examines the connection between renewable energy, export and economic growth in Nigeria using ARDL techniques over the period of 1990-2023 employing time series data from World Development Indicator (WDI, 2023). The findings indicate that there is a negative connection between renewable energy and economic growth in Nigeria. Nigeria's trade profile, as a major exporter of primary products, contributes to global emissions. However, the emphasis of this analysis is Nigeria's carbon emissions, which may decline as emissions from more environmentally friendly exports rises. The study recommended real-world policy implementation such as regulatory rigidity, limited grid capacity for renewable integration, reliance on coal in certain regions, and the political economy of energy pricing may significantly influence the feasibility of proposed interventions.
AUDIT COMMITTEE CHARACTERISTICS AND FINANCIAL REPORTING QUALITY OF LISTED FIRMS IN NIGERIA
The issue of transparency in financial reporting has become a vital practice due to financial scandals experienced by the big companies in recent years. As a result of this, the study evaluates the determinants of audit committee transparency on financial reporting quality of listed firms in Nigeria. The study employed ex-post facto research design. The population of the study consists 171 companies listed on the floor of Nigerian Exchange Group. The study covered the period of 2015 to 2025. 56 companies were selected from the total population, using purposive sampling techniques. The study made use of secondary data. The research adopted descriptive statistics to analysis the variables. Panel least square and Generalised Method of Moment(GMM) was used in achieving the objectives. The result of correlation analysis shows that audit independence aids the financial reporting quality (1.042) and t-value of the variable (6.52) indicated that the variable was statistically significant. The audit expertise also contributed to the growth in the financial reporting quality of the firms. The coefficient of 0.595 and t-value of 7.27 indicated that rise in the number of audit expertise aid the financial reporting quality. The frequency of the audit committee meeting enhanced the financial reporting quality of the sampled firms in Nigeria. It aided the financial reporting quality with coefficient value of 0.108 and t-value of 3.64, audit committee expertise and audit meeting have a positive relationship with FRQ of the firm. The study concluded that audit independence, audit expertise and audit meeting, enhanced the financial reporting quality of firms in Nigeria. The study recommends that audit committee of the firms should comprise people who have adequate knowledge of financial activities. Those who can easily identify fraud and creative accounting.
EFFECT OF FOREIGN EXCHANGE RATE VOLATILITY AND CORPORATE PERFORMANCE: EVIDENCE FROM NIGERIA’S MANUFACTURING SECTOR
The forex volatility that greeted the 2023 general election in Nigeria and its exacerbation afterwards is a source of serious concern amongst manufacturers wherein unprecedented losses have been filed by major stock market participants among manufacturers in Nigeria. Consequent upon this, this study examines foreign exchange rate volatility's impact on the corporate performance of manufacturing firms in in Nigeria using a panel regression design over a 10-year period. The study investigated the forex volatility effect on financial performance as measured with return on asset, return on equity and Tobin’s Q. The findings revealed that forex volatility has no statistical significance on return on equity and return on asset. The study discovered that, forex volatility has statistically negative effect on Tobins’ Q but does not have a significant effect on ROE and ROA. This informs the conclusion that foreign exchange volatility embeds public information in its effect on performance as the significant effect noted was on the stock market-based performance of manufacturing firms. Among other things, the report recommends that prospective investors in the industrial firms should create plans that strike a balance between both foreign exchange and the profitability of their respective investee companies.
ENTREPRENEURSHIP EDUCATION AND STUDENT VENTURE CREATION: A REVIEW OF INSTITUTIONAL BARRIERS AND ECOSYSTEM CONDITIONS
Entrepreneurship development among youth and higher institution students is recognised as a strategy for addressing economic growth and sustainable development, particularly in Africa. However, despite growing discussion, policy proposals, and support, youth unemployment rates remain high, while student Total Entrepreneurial Activities remain low. This paper presents a systematic review of the challenges African students face that hinder the development of entrepreneurial skills and explores the prospects for entrepreneurial action. Guided by the PRISMA framework, relevant studies published between 2010 and 2025 were selected from reputable academic databases, including Scopus, Web of Science, and Google Scholar. A systematic search and screening yielded 65 peer-reviewed studies for analysis. Selected studies were synthesised thematically, revealing several major barriers affecting the learners' transformation. Findings highlight, based on the literature reviewed, the mediating roles of self-efficacy and orientation in transforming educational learning into venture outcomes. It therefore develops a conceptual framework connecting institutional inputs, individual competencies, and ecosystem factors to student venture creation. The review synthesises existing research into an integral framework and provides actionable policy recommendations to strengthen the entrepreneurial ecosystem in higher institutions of learning. Therefore, the study recommends synthesising fragmented research into a multi-level conceptual framework linking education, competencies, and ecosystem support to venture creation. It informs policymakers, university management, and industry stakeholders on how to design, implement, and sustain entrepreneurship curriculum, programs and policies that develop students’ capabilities and confidence.
DOES AUDIT QUALITY INFLUENCE EARNINGS MANAGEMENT PRACTICE IN COMPANIES? A THEORETICAL AND SYSTEMATIC REVIEW APPROACH
The primary intent of this study is to examine whether audit quality influences earnings management practices in companies. Specifically, the study seeks to synthesize theoretical and empirical evidence on how audit quality attributes such as audit firm size, audit tenure, auditor independence, audit fees, industry specialization, audit report timeliness, and auditor opinion affect accrual-based and real earnings management, thereby addressing inconsistencies in prior literature. This study adopts a theoretical and systematic review approach based on the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework. Relevant studies were systematically identified from Scopus, Emerald, Taylor and Francis, and other peer-reviewed journals. After applying defined inclusion and exclusion criteria, twenty-five (25) empirical articles published between 2017 and 2025 were reviewed and synthesized. The review reveals that, in many cases, higher audit quality significantly constrains earnings management practices. Audit attributes such as audit firm size (Big 4), auditor independence, auditor reputation, audit tenure, and industry specialization are found to reduce both accrual-based and real earnings management. However, mixed and contradictory evidence is also observed, indicating that the influence of audit quality varies across institutional, regulatory, and country. The study concludes that audit quality is a critical determinant of financial reporting quality, but its effectiveness depends on the strength of governance systems and institutional frameworks within which it operates. It is therefore recommended that regulators and professional bodies strengthen auditor independence, enhance audit committee effectiveness, enforce audit quality standards, and promote industry-specific audit expertise.
RESEARCH AND DEVELOPMENT INVESTMENTS, INNOVATIVE OUTPUT AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA
As it is generally expected that research and development (R&D) spending should translate into higher financial returns, many listed consumer goods firms in Nigeria continue to record R&D outlays that do not correspond to improved profitability. This raises doubts about whether R&D investment can singlehandedly drive financial performance in the sector. This study addresses this problem by examining how research and development investment, research and development intensity, and innovative output separately affect the financial performance of listed consumer goods firms in Nigeria between 2013 and 2023. Innovation has been believed to improve financial success, particularly in emerging economies where it is required that firms navigate rapidly changing consumer preferences and intense competition. Innovation is widely recognized as a critical driver of financial success, particularly in emerging economies where firms must navigate rapidly changing consumer preferences and intense competition. Data were hand-collected from the audited annual reports of fourteen (14) purposively selected listed consumer goods firms in Nigeria, yielding 154 firm-year observations. Both descriptive statistics and a panel data approach were employed; the Hausman test favoured a random-effects specification, but because the data exhibited heteroskedasticity and serial correlation, the model was estimated using robust least squares regression. The findings show that though R&D expenditure relative to sales at β = 0.1419, p = 0.5962 and total R&D investment at β = 0.0050, p = 0.2339 have a positive effect on financial performance, yet they are statistically insignificant. This indicates that increasing research and development expenditure, whether in absolute terms or relative to sales, does not on its own translate into improved financial outcomes. Meanwhile, innovative output is statistically significant (β = 1.0271, p = 0.0000) with positive effect on financial performance. The model also explains about 73 percent of the variation in financial performance (R² = 0.7286). The implication of this is that how much is incurred on R&D expenditure does not drive financial returns, innovation does. The findings suggest that firms should adopt a strategic approach that focuses R&D investment on innovations. Financial returns improve when R&D spending focuses on marketable innovations.
ECONOMIC SENTIMENT AND STOCK MARKET VOLATILITY: EVIDENCE FROM THE NIGERIAN EXCHANGE GROUP
This study examined the effects of direct investor sentiment, indirect investor sentiment, and selected macroeconomic variables on stock market volatility in the Nigerian Exchange Group using 120 monthly observations from January 2016 to December 2025 within a multiple regression framework. Direct sentiment was proxied by the Consumer Confidence Index and indirect sentiment by a composite index of trading volume and turnover ratio; macroeconomic controls included inflation, exchange rate, oil price, and stock market development. Direct investor sentiment had a negative and statistically significant effect on stock market volatility (Beta = -0.528, p < 0.001), with the model explaining 27.9 per cent of variance in volatility — a finding that departs from the conventional expectation that rising optimism fuels speculative excess and is interpreted through the Adaptive Market Hypothesis as a context-dependent sentiment effect in a persistently pessimistic frontier market. Indirect investor sentiment produced no significant effect on volatility in either the bivariate or full model, indicating that volume-based proxies capture liquidity dynamics rather than behavioural sentiment in the Nigerian market microstructure. In the full model, inflation was the only macroeconomic variable to reach significance, confirming that price instability is a direct transmitter of uncertainty into equity market risk; the combined model explained 34.4 per cent of variance (Adjusted R² = 0.309, F = 9.864, p < 0.001). Severe autocorrelation was present across all models, qualifying the reported significance levels and motivating re-estimation through GARCH or Newey-West HAC approaches. The findings contribute updated evidence on the sentiment-volatility relationship in a frontier market and recommend that regulators incorporate consumer confidence indicators into market surveillance frameworks and that future research adopt volatility-specific time-series estimation methods.
MACROECONOMIC FACTORS AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA
The Nigerian manufacturing sector has experienced persistent macroeconomic instability characterized by exchange rate volatility, inflationary pressures, and fluctuating interest rates, which have adversely affected frim profitability and operational efficiency. This study examines how macroeconomic variables affect Nigerian manufacturing companies' performance. The study used a longitudinal panel research design which the population comprised 71 manufacturing firms listed on the Nigerian Exchange Group (NGX) as of December 2023. Using purposive sampling, 27 firms with complete financial records for a 14-year period (2010–2023) were selected. The World Bank databases, the Central Bank of Nigeria Statistical Bulletin, and the annual financial statements of the sampled companies were the sources of secondary data. The System-GMM estimator was used because the model contains lagged dependent variables and potential endogeneity. Also to deal with endogeneity, dynamics, and unobserved heterogeneity. Furthermore, the study used descriptive statistics, correlation, panel unit root tests (Levin-Lin-Chu; Im- Pesaran-Shin), as well as tests for cross-sectional dependence for robustness purposes. The empirical findings suggest that exchange rate, interest rate and inflation had negative and significant impacts on both ROA and ROE, signifying that macroeconomic instability in Nigeria through its effects on profitability cum shareholders’ value. In addition it revealed average ROA and ROE of 6.06% and 4.82% respectively, while exchange rate averaged ₦213.05/$ and inflation averaged 11,97% . The study concluded and recommended that there is a strong and positive correlation between government revenue and business performance, suggesting that higher fiscal capacity generally boosts financial outcomes and industrial performance. The paper ends by advocating for macroeconomic stability and prudent monetary policy in conjunction with a more strengthened fiscal policy management as necessary ingredients for sustainable growth in the industrial sector.
FISCAL DECENTRALIZATION AND FOREIGN DIRECT INVESTMENT INFLOWS IN NIGERIA: EVIDENCE FROM REVENUE AND EXPENDITURE DECENTRALIZATION, 1985–2024
This study examined the impact of fiscal decentralization on the foreign direct investment (FDI) in Nigeria for the period 1985 to 2024. The study considers revenue fiscal decentralization, expenditure fiscal decentralization, and the interactive effects of both. Time series annual data from Central Bank of Nigeria, UNCTAD, and World Bank was used. This data was subjected to the analysis of Autoregressive Distributed Lag (ARDL) Model and the Error Correction Mechanism (ECM). The results showed that revenue fiscal decentralization has a significantly positive effect on the level of FDI whereas the negative effects of expenditure fiscal decentralization and the interaction between revenue and expenditure fiscal decentralization on the flow of FDI were evident. The ECM shows the existence of a long run equilibrium in all the variables, where the rate of adjustment is 36.6 percent per year. In conclusion, this paper establishes the importance of fiscal decentralization especially revenue fiscal decentralization in attracting FDI in Nigeria.
FIRM SPECIFIC FACTORS AND CORPORATE TAX AGGRESSIVENESS AMONG LISTED MANUFACTURING FIRMS IN NIGERIA
Corporate tax aggressiveness remains a significant challenge to government revenue generation in Nigeria, particularly given the country's heavy reliance on corporate taxes. The problem is more pronounced among manufacturing firms, whose capital structures, asset compositions, and governance arrangements may provide opportunities for aggressive tax practices. This study investigates the effect of firm-specific factors on corporate tax aggressiveness among listed manufacturing firms in Nigeria. The study employs an ex post facto research design and utilizes secondary data extracted from the annual reports and audited financial statements of sampled listed manufacturing firms over a ten-year period spanning 2014 to 2023. The population comprises all 34 listed manufacturing firms in Nigeria, from which a sample of 17 firms was purposively selected based on data availability. Corporate tax aggressiveness was proxy using the effective tax rate. Panel data regression analysis was employed, with Panel-Corrected Standard Errors (PCSEs) used to address heteroskedasticity and autocorrelation, alongside relevant diagnostic tests. The findings reveal that Capital intensity has a positive and significant effect on the effective tax rate (β = 0.185, p = 0.002), implying that firms with higher capital intensity exhibit lower levels of tax aggressiveness while financial distress shows a positive but insignificant effect (β = 0.024, p = 0.392). Leverage also has a positive and significant influence on tax aggressiveness (β = 0.143, p = 0.010). The study concludes that corporate tax aggressiveness among listed manufacturing firms in Nigeria is largely driven by capital intensity and leverage rather than financial distress. It therefore recommends that tax authorities strengthen monitoring of capital allowances, and leverage-related tax incentives, while corporate boards and auditors should promote transparency and responsible tax practices to balance tax efficiency with compliance.
DEPOSIT GROWTH RATE, LEVERAGE, AND BANK SIZE: AN EMPIRICAL STUDY OF THEIR EFFECTS ON FINANCIAL PERFORMANCE OF LISTED BANKS
The study examines the Deposit Growth Rate, Leverage, and Firm Size: An Empirical Study of Their Effects on Financial Performance of Listed Banks. The study covers the period of seven (14) years from 2010 to 2023. The population of this study consists of thirteen (13) listed deposit money banks on the Nigerian stock exchange as at 31 December, 2023. Multiple regression was used for the panel data analysis in order to establish relationship between the variables of the study. Multiple regression was considered appropriate in view of the fact that it helps in not only establishing relationship between variables. The analysis reveals Firm size has a negative and insignificantly effect on the financial performance proxied by ROE of the listed deposit money banks in Nigeria. This predicts that the performances of high firm of listed deposit money banks in Nigeria are going to increase the profit of the banks and it implies that debt financing is not appropriate for the listed deposit money banks. Furthermore, the findings reveal that Deposit growth rate, leverage had a positive and insignificant effect on return on equity (ROE). This means that Firm size can control the financial performance of banks, it was also found that Deposit growth rate has insignificant positive relationship with financial performance. It can be concluded that the study banks are increasing their Leverage very rapidly but their growth does not produce any outcome to the listed banks in Nigeria. More so, lower Leverage has been found to reduce the return on equity due to the reduction of investment by banks customers. This study recommends that banks should continuing investing their resources and expertise to exercise control over management and increase Firm size through ownership re-orientation which can affect the financial performance of listed deposit money banks.
PERFORMANCE AUDIT ETHICS, AUDITOR INDEPENDENCE AND SERVICE DELIVERY IN FEDERAL MINISTRIES, DEPARTMENTS AND AGENCIES IN NIGERIA
Despite ongoing public sector reforms in Nigeria, service delivery in many Federal Ministries, Departments, and Agencies (MDAs) continues to face challenges relating to efficiency, responsiveness, transparency, and reliability. This underscores the need for stronger performance auditing mechanisms capable of enhancing accountability and governance outcomes. This study investigates the impact of performance audit ethical requirements and independence of practice on the quality of service delivery in Nigeria’s public sector, with emphasis on Federal MDAs. The study evaluates the influence of Fundamental Ethical Requirements (FER), Independence and Objectivity (IO), Compliance and Monitoring Mechanisms (CMM), and Transparency and Accountability in Ethical Conduct (TAEC) on service delivery outcomes. A survey research design was adopted, and data were collected from 270 auditors in the Office of the Auditor-General for the Federation (OAuGF), whose responsibilities include evaluating the performance and accountability systems of Federal MDAs. Ordered Logistic Regression and Ordinary Least Squares techniques were employed for data analysis. The results show that IO significantly improved responsiveness (β = 0.190, p = 0.035), efficiency (β = 0.749, p = 0.002), and reliability (β = 0.164, p = 0.008), while CMM significantly enhanced responsiveness (β = 0.777, p = 0.001), efficiency (β = 0.508, p = 0.031), and reliability (β = 0.930, p < 0.001). The study concludes that auditor independence and effective compliance monitoring mechanisms are critical for improving accountability and service delivery in Federal MDAs and recommends strengthening auditor autonomy and institutional oversight frameworks.
EXPLORING THE EFFECT OF ARTIFICIAL INTELLIGENCE ON AUDIT QUALITY REPORTING: EVIDENCE FROM FOOD AND BEVERAGES FIRMS IN NIGERIA
This study investigates the effect of artificial intelligence (AI) adoption on audit quality reporting in Nigeria’s food and beverages sector, against the backdrop of growing digitalization in audit practices. A survey research design was adopted, and primary data was collected through structured questionnaires administered to 193 accountants and auditors with practical exposure to AI-enabled auditing processes. The sample size satisfies established requirements for multiple regression analysis and ensures sufficient statistical power. Audit quality reporting was specified as the dependent variable, while AI adoption was decomposed into machine learning, cloud accounting, and natural language processing. Audit tenure, audit fees, and audit experience were incorporated as control variables to isolate the net effect of AI adoption on audit quality reporting. Data analysis was conducted using descriptive statistics, correlation analysis, and ordinary least squares regression. The empirical results indicate that cloud accounting has a strong and statistically significant positive effect on audit quality reporting, reflecting its role in enhancing audit efficiency, data accessibility, and reporting transparency. Machine learning also exhibits a positive and statistically significant influence, although its magnitude is relatively modest. In contrast, natural language processing does not demonstrate a statistically significant effect on audit quality reporting. The control variables remain significant, confirming the continued relevance of traditional audit characteristics in determining audit quality outcomes. The study concludes that cloud accounting constitutes the most impactful AI component for improving audit quality reporting in the sector. It recommends that audit firms prioritize cloud-based technologies, strengthen machine learning capabilities through professional training, and adopt structured AI implementation frameworks to enhance audit reporting quality.
TAX INCENTIVES, FORMAL ACCOUNTING PRACTICES, AND FINANCIAL INCLUSION AMONG WOMEN ENTREPRENEURS IN NIGERIA’S INFORMAL SECTOR
This study explored how tax incentives, formal accounting practices, and financial inclusion are interconnected among women entrepreneurs in Nigeria’s informal sector. Data from 281 women entrepreneurs in Southwest Nigeria were gathered using structured questionnaires and analysed through descriptive statistics, Pearson chi-square tests, and structural equation modelling. The results showed that most respondents had limited awareness of and utilisation of tax incentives. Business registration was significantly associated with access to tax incentives (χ² = 17.097, p < 0.01), and access to financial services strongly correlated with financial inclusion (χ² = 111.555, p < 0.01). Additionally, adopting formal accounting practices significantly enhanced financial inclusion (χ² = 25.376, p < 0.01). Structural equation modelling revealed that formal accounting practices mediate the link between tax incentives and financial inclusion. Formal accounting acts as a crucial bridge, facilitating the transfer of policy benefits into improved financial outcomes. The study concludes that tax incentives alone are inadequate to increase financial inclusion; they require support from formalisation and stronger accounting practices. Inclusive, formal accounting practices are essential in translating tax incentives into greater financial inclusion for women entrepreneurs. Recommendations include simplifying registration and tax procedures for women and implementing targeted educational campaigns to increase understanding of the benefits of tax reform.
TAX PLANNING AND CORPORATE PROFITABILITY IN NIGERIAN MANUFACTURING SECTOR: AN EMPIRICAL ANALYSIS
This study examines the relationship between tax planning and corporate profitability in publicly listed Nigerian manufacturing firms from 2015 to 2024. Specifically, it investigates the effects of Effective Tax Rate (ETR), Book-Tax Differences (BTD), and Tax-to-Asset Ratio (TAS) on Return on Equity (ROE). Using panel data from 32 firms on the Nigerian Exchange Group (NGX), we applied fixed-effects panel regression analysis, supported by descriptive statistics, correlation matrices, and diagnostic tests. Results indicate that higher ETR is negatively associated with ROE (β = -0.38, p < 0.01), while higher BTD (β = 0.65, p < 0.01) and TAS (β = 0.58, p < 0.01) positively influence ROE. These findings suggest that strategic, legally compliant tax planning can enhance profitability for Nigerian manufacturing firms. Policy implications include the need for sector-specific tax incentives and simplified compliance procedures to support firm performance.
TAXATION DETERMINANT OF ECONOMIC GROWTH IN DEVELOPING ECONOMIES: A CASE OF TANZANIA
Over the last two decades Tanzania has expanded its economic growth but its tax-to-GDP ratio is still below the average for Sub-Saharan Africa. The empirical literature on the taxation-growth relationship has yielded inconclusive results, particularly when time-series properties of macroeconomic data are inadequately addressed. This study investigates the taxation determinants of economic growth in developing economies using Tanzania as a case study. Utilizing the data between 1997 and 2022, Autoregressive Distributed Lag (ARDL) procedure was used to determine the relationship between tax revenue and economic growth, using investment, the labor force and trade openness as additional (control) variables. Each of the variables was first expressed in logarithms and tested for unit roots to determine whether they were integrated of order zero or one. The result revealed that the coefficient of tax revenue was estimated to be positive and statistically significant (β = 0.47, p < 0.01). Furthermore, the estimate of the error-correction term was -0.68, indicating that two-thirds of the disequilibrium in the relationship between tax revenue and economic growth is corrected within a year. The study concludes that taxation has a significant positive long-run effect on economic growth in Tanzania with a fast equilibrium adjustment. Policy makers should focus on broadening the tax base, improving administrative efficiency at the Tanzania Revenue Authority (TRA) and allocating revenue from taxation to productive infrastructure investments for positive economic multiplier effect and growth instead of raising marginal tax rates
CORPORATE GOVERNANCE PRACTICES AND FINANCIAL PERFORMANCE OF MANUFACTURING COMPANIES IN NIGERIA
Persistent inconsistencies and declines in corporate financial performance remain a critical concern for many firms, yet the precise role of corporate governance in addressing this problem is not fully understood. This study examined the effect of corporate governance practices on the financial performance of listed manufacturing companies in Nigeria, with emphasis on dynamic governance indicators. The study adopted an ex-post facto research design and employed a purposive sampling technique to select ten (10) manufacturing firms listed on the Nigerian Exchange Limited (NGX). Secondary data was obtained from published annual reports and financial statements of the firms sampled from the period of 2014 to 2024. Both descriptive and inferential statistical methods were applied to analyze demographic variables, research questions and hypothesis testing using E-views at 5% level of significance. The findings revealed that corporate governance had significant effect on return on assets (ROA) (Adjusted R2 = 0.757, F = 20.827, p < 0.05). The results also revealed that corporate governance had a significant effect on return on equity (ROE) (Adjusted R2 = 0.349, F = 4.423, p < 0.05). The results also revealed that corporate governance had a significant effect on return on capital employed (ROCE) (Adjusted R2 = 0.279, F = 3.470, p < 0.05). Finally, the results revealed that corporate governance had a significant effect on asset turnover ratio (ATR) (Adjusted R2 = 0.555, F = 8.947, p < 0.05). This study concluded that a comprehensive and sector-inclusive approach to corporate governance, incorporating dynamic governance practices, significantly enhances financial performance prediction in Nigeria’s manufacturing firms. The study recommended that companies and regulatory bodies adopt advanced governance frameworks and industry-specific practices to boost firm performance sustainably.
DETERMINANT OF DIGITAL FINANCIAL INCLUSION ADOPTION IN SUB SAHARAN AFRICA
Financial exclusion remains a major global challenges, particularly in developing economies, where a large proportion of the population still lacks access to digital financial services due to limited internet penetration and infrastructure deficits. This situation is further exacerbated by technological constraints, low digital literacy, socio-demographic barrier, and weak regulatory frameworks that hinder the effective adoption and usage of digital financial system. This study investigates the determinants of digital financial inclusion in selected Sub-Saharan African countries using secondary data obtained from internationally recognized sources, including the World Development Indicators (WDI) and the International Monetary Fund (IMF). The study adopt an ex post facto research design using panel data from 22 sub-Saharan countries selected through purposive sampling. A Digital Financial Inclusion Index (DFII) is constructed using Principal Component Analysis ( using panel regression techniques. The results reveal that internet penetration (β = 0.0289, p < 0.05) has a positive and statistically significant effect on digital financial inclusion, highlighting the importance of digital infrastructure in facilitating access to digital financial service In contrast, mobile phone subscriptions (β =0.000592, p < 0.00601) do not significantly influence digital financial inclusion, suggesting that device ownership alone does not guarantee effective usage. Literacy and educational attainment (β = 0.0204, p < 0.01) positively affect DFI, while regulatory quality (β =0.0652, p < 0.471) shows limited significance, indicating that institutional frameworks must be complemented by investments in infrastructure and human capital, moreso, GDP growth (β =0.0268, p < 0.0114) has a positive and statistically significant effect on DFI. The study concludes that digital financial inclusion in Sub-Saharan Africa extends beyond technological availability and depends on reliable internet access, improved digital skills, and supportive macroeconomic conditions.The study recommends that policymakers prioritise expanding reliable internet access and strengthening digital literacy initiatives, particularly in underserved areas, to enhance the adoption and effective use of digital financial services.
GOVERNANCE QUALITY AND ECONOMIC GROWTH: EVIDENCE FROM SELECTED COUNTRIES IN SUB-SAHARAN AFRICA
Despite copious natural resources and economic potential, some sub-Saharan African countries continue to experience unstable and low economic growth due to weak governance institutions. This study examines the effects of the quality of governance on the economic growth of countries in the chosen sub-Saharan Africa region. The study employs the secondary data that are in the World Bank databases and the Worldwide Governance Indicators that apply to six states, including Nigeria, Ghana, Kenya, Tanzania, South Africa, and Zimbabwe, between the years 1996 and 2023. The empirical analysis is done with panel least squares regression procedures. The findings indicate that the quality of regulatory aspects (β = 2.1996, p = 0.029) positively and significantly influences the growth of GDP in the sampled countries. However, other governance indicators, including control of corruption, political stability, and rule of law, show weak or statistically non-material relationships with economic growth. The study concludes that the key to sustainable economic growth in the region is a regulatory framework and proper implementation of the policy. Government is thus urged to focus on proper regulation, open governance, and institutional reinforcement to draw investment, enhance productivity, and sustain the growth of the economy.
REVENUE GENERATION AND RURAL DEVELOPMENT: EVIDENCE FROM ASA LOCAL GOVERNMENT OF KWARA STATE
Revenue generation remains pivotal to financing sustainable rural development, especially in developing nations like Nigeria where local governments face persistent infrastructural and social deficits. Despite the constitutional mandate for internally generated revenue (IGR), most local governments remain heavily dependent on federal allocations, limiting their developmental capacity. Against this backdrop, this paperassessed the impact of revenue generation on rural development in Asa Local Government, Kwara State. The study adopted a positivist paradigm and a quantitative descriptive survey design, utilized a sample of 186 respondents drawn from local government administrators, finance officers, planning officers, and community leaders. Primary data were collected through structured questionnaires. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to test the hypothesized relationships among variables. Findings revealed that internally generated revenue which comprised taxes, levies, and user chargescontributes positively to rural development (β = 0.931, P = 0.000), particularly in enhancing education, healthcare, and access to potable water, though its effect on road infrastructure remains modest. The results also showed that revenue generation is significantly constrained by low tax compliance, corruption, weak institutional capacity, and political interference, all of which negatively impact service delivery(β = -0.022, P = 0.332). The paper concludes that while IGR contributes meaningfully to rural development in Asa Local Government, its effectiveness is undermined by systemic challenges that limit its sustainability. It recommends strengthening institutional frameworks such as adoption of digital tax administration platforms to minimize leakages for revenue collection, promoting taxpayer awareness and compliance, reducing political interference, and diversifying revenue sources to ensure adequate funding for infrastructural and social development in rural communities.
ENTREPRENEURIAL ACCOUNTABILITY DEFICITS AND DIGITAL MECHANISMS: AN INVESTIGATION OF BUSINESS FAILURE AND SURVIVAL IN LAGOS STATE
Entrepreneurial firms in emerging economies continue to experience high failure rates despite various policy interventions and support programmes. In Nigeria, particularly within Alaba International Market, Lagos State, many enterprises face accountability deficits such as weak financial reporting, poor governance, and limited transparency. This study examined the effect of entrepreneurial accountability deficits on entrepreneurial sustainability and the role of digital accountability mechanisms among 120 randomly selected entrepreneurs. Data were collected using structured questionnaires and analysed using descriptive statistics and multiple hierarchical regression. Findings revealed that weak financial record-keeping, poor internal controls, and low use of digital monitoring tools significantly reduce entrepreneurial sustainability, while fintech applications, blockchain systems, and AI-based tools significantly enhance transparency, accountability, and business resilience. The study further established a significant moderating effect of digital mechanisms on the relationship between accountability deficits and entrepreneurial sustainability (ΔR² = 0.054, p = 0.031), indicating a buffering effect. It concludes that digital accountability mechanisms improve both direct and conditional effects on sustainability and recommends stronger digital literacy and technology adoption support for SMEs.
AUDIT COMMITTEE CONTROL MECHANISMS AND FINANCIAL REPORTING QUALITY: EVIDENCE FROM LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA
There is a persistent concern about the credibility of financial reporting quality of industrial goods companies given the nature of their operations. This study examines whether audit committee control mechanisms affect the financial reporting quality (FRQ) of industrial goods companies quoted on the Nigerian Exchange Group. The study employs the ex post facto design, using panel data from 14 industrial goods firms over from 2015 to 2024. The analysis employs panel regression with corrected standard errors to address heteroscedasticity and firm-specific effects. The findings reveal that ACG (β = 0.024, p = 0.004) and tenure (β = 0.0080, p = 0.0000) have significant positive influence on FRQ, indicating that diverse and experienced audit committees enhance control effectiveness and constrain opportunistic reporting behavior. In contrast, ACS (-β = -0.0127, p = 0.740) and meeting frequency (β = -0.0006, p = 0.605) exert insignificant effect. The study concludes that audit committee gender diversity and tenure significantly impact the financial reporting quality of the industrial goods companies in Nigeria, while the activity as represented by meetings and expertise do not impact the financial reporting process. The study recommends, among other things, that regulatory authorities should strengthen corporate governance codes by encouraging greater gender diversity on Audit committee of listed industrial goods companies, as female representation has been shown to significantly improve FRQ
TRANSACTION COSTS AND COMMERCIAL BANKS CREDIT BUSINESS IN TANZANIA
The purpose of this study is to investigate the transaction costs that commercial banks in Tanzania experience in extending credit to borrowers outside of the established urban markets. Using Transaction Cost Economics as a theoretical framework, a positivist paradigm and cross-sectional survey design was undertaken, utilizing questionnaires that were distributed to 204 credit officers from banks throughout Tanzania. Statistical analyses of these questionnaires included descriptive statistics, correlation analyses, and regression analyses to determine which of the transaction costs associated with lending to these bank customers were the most significant. Results indicated that time-related costs were the most significant contributor to the transaction costs of commercial banks in Tanzania (β = .876, p < .001), followed by lawyer fees (β = .216, p < .001). These two costs accounted for 79.5% of the total transaction costs of commercial banks in Tanzania. Furthermore, these costs indicate the challenges that banks in Tanzania experience in identifying and lending to borrowers in rural areas. To reduce the transaction costs that commercial banks in Tanzania experience in lending to these borrowers, it is recommended that the banks improve their information systems, mobile and agent lending channels, and regulate regional lending costs.
MODERATING EFFECT OF DIGITALISATION ON THE RELATIONSHIP BETWEEN TAX REVENUE AND BUDGET PERFORMANCE IN NIGERIA
Inspired by persistent fiscal imbalances, and tax revenue compelled an exploration of the significance of digitalisation in securing Nigeria's enduring budgetary sustainability. This study investigates the moderating effect of digitalisation on the relationship between tax revenue and budget performance in Nigeria, using annual data from 1981 to 2024. The study employed quantitative longitudinal research design. The Autoregressive Distributed Lag (ARDL) model was employed to analyze both short-run and long-run dynamics after unit root tests (Augmented Dickey-Fuller and Philip-Perron) confirmed a mix of stationary variables. The results revealed that total tax revenue showed a significant positive impact on budget performance. When disaggregated, direct taxes had a negative effect, while indirect taxes had a marginally positive effect in the short run. The interaction term with tax revenue was negative but statistically not significant. The consistently significant negative error correction terms across all models confirmed a long-run equilibrium relationship. The study concluded that digitalisation adoption in Nigeria does not significantly moderate the relationship between tax revenue and budget performance. The study recommends prioritizing structural reforms and digital modernization to curb expenditures and ensure sustainable budget performance. Furthermore, full implementation of the Nigeria Tax Act 2025 is advocated to digitalize tax revenue streams and enhance collection efficiency across federal agencies.
FINANCIAL LEVERAGE AND EARNINGS MANIPULATION AMONG LISTED OIL AND GAS FIRMS IN NIGERIA
The oil and gas sector is characterised by high capital intensity, volatile cash flows, and significant exposure to debt financing. This study examines the influence of financial leverage and earnings manipulation among the listed oil and gas companies in Nigeria. The study employs both the Accrual-based (DA) and the Real Earnings Management (REM) proxies for earnings manipulation. The financial leverage is calculated based on total debt to total assets, whereas the control variables are firm size, profitability, firm growth, and working capital. Secondary data were gathered from financial reports of eight (8) chosen oil and gas listed firms in Nigeria, which were obtained from the Machameratio database for eleven (11) years, from 2013 to 2023. The study based on monitoring hypothesis. Data were analysed in three stages preliminary, model estimation, and post-estimation test using panel data regression on STATA 15 to ascertain the strength and the direction of between study variables. The findings reveal that financial leverage has a negative and significant effect on DA and REM. However, firm size has a positive and significant influence on DA and REM. Furthermore, profitability has a negative and significant influence on DA and REM. Nonetheless, firm growth reveals a negative and significant influence on REM. Thus, the study concludes that financial leverage negatively influencing DA and REM while firm size and profitability are significant factors that influence earnings manipulation in listed oil and gas firms. Moreover, firm growth only influences REM.