FUDMA Journal of Accounting and Finance Research [FUJAFR]
FUDMA Journal of Accounting and Finance Research [FUJAFR] — eISSN: 2992-4693; pISSN: 2992-2704 (FUJAFR) — advances contemporary research in accounting and finance. It publishes original research articles that uncover the connectivity of accounting and finance with the global socio-economic and political environment, thereby encouraging continuous debates in the theory and practice of accounting and financial management. The scope of FUJAFR includes all aspects of accounting and finance, both conventional and contemporary. FUJAFR publishes quarterly in March, June, September, and December and has no deadline for submission of manuscripts. It is an open-access journal. FUJAFR is hosted by the Department of Accounting, Federal University Dutsin-Ma [FUDMA], Katsina State, Nigeria. The Journal publishes in soft copy, giving each article a unique Digital Object Identifier (DOI) to facilitate cross-referencing.
Department of Accounting, Faculty of Management Sciences, Federal University Dutsin-Ma, Katsina State, Nigeria.
The FUDMA Journal of Accounting and Finance Research (FUJAFR) operates a copyright policy that ensures a balance between author rights and wide dissemination of scholarly work. 1. Author Copyright Retention Authors retain full copyright of their published work without restriction. Submission to FUJAFR does not transfer ownership of copyright to the journal. 2. License to Publish By submitting a manuscript and upon acceptance, authors grant FUJAFR: The right to publish, reproduce, and distribute the article The right to identify itself as the original publisher of the work This grant is non-exclusive, meaning authors are free to reuse their work in other contexts, provided proper acknowledgment of the original publication in FUJAFR is made. 3. Licensing of Published Content All articles are published under the: Creative Commons Attribution-NonCommercial License (CC BY-NC 4.0) Under this license: Users may share and adapt the work for non-commercial purposes only Proper attribution to the author(s) and the journal is required Any commercial use requires explicit permission from the copyright holder 4. Author Reuse Rights Authors are permitted to: Archive their published articles in institutional repositories or personal websites Share their work for educational and research purposes Reuse portions of their work in future publications (e.g., books or other articles), provided proper citation of the original publication is included 5. Third-Party Content Authors are responsible for obtaining permission to use any third-party copyrighted material (e.g., images, tables, datasets) included in their manuscripts. Proper acknowledgment must be provided where required. 6. Attribution Requirement All users of FUJAFR content must provide appropriate credit, including: Author name(s) Article title Journal name (FUJAFR) Year of publication
Effect of financial management practices on the financial sustainability of non-governmental organizations (NGOs) in Nigeria
Purpose: This study examined the effect of financial management practices on the financial sustainability of Non-Governmental Organizations (NGOs) in Nigeria. Methodology: An ex post facto research design was adopted, utilizing secondary data obtained from the annual reports of 15 national and international NGOs registered with the Corporate Affairs Commission (CAC) and operating across Nigeria. The study covered an eleven-year period (2014–2024) and employed descriptive statistics, correlation analysis, and fixed effects regression techniques to analyze 165 observations. Results and conclusion: The results revealed that while fund diversification and grant compliance management have positive but statistically insignificant effects on financial sustainability, own income generation has a strong positive and statistically significant effect. Inflation shows a significant negative effect, whereas NGO size exhibits an insignificant negative relationship with sustainability. The study recommended that should NGOs prioritize investment in grant compliance systems, expand mission-aligned income-generating activities, and focus on building stable and predictable funding relationships. The study contributes to existing literature by providing empirical evidence within the Nigerian context and offers practical insights for enhancing the long-term viability and developmental impact of NGOs. Implication of findings: The study concluded that the financial sustainability of NGOs in Nigeria largely depends on their ability to strengthen internal financial capacity, particularly through income generation and effective financial management systems.
Copyright (c) 2026 Justin Aondohemba Tseeneke, Luper Iorpev, Terungwa Azende, Titus Gbulum https://creativecommons.org/licenses/by-nc/4.0
Bank specific risk and performance: evidence from Nigeria
Purpose: This study examines the influence of bank-specific risk governance and regulatory compliance on the operational performance of Deposit Money Banks (DMBs) in Nigeria over 2015–2024. Methodology: Secondary panel data for five systemically important DMBs — Access Bank, Zenith Bank, GTCO, First Bank, and UBA — were analysed over a ten-year period. Operational performance is proxied by Return on Assets (ROA). Risk governance predictors include credit risk, liquidity risk, operational risk, regulatory compliance, and bank size as a control variable. Pooled OLS, fixed effects, and random effects panel models were estimated, with the Hausman test selecting the preferred estimator. Results and conclusion: The findings reveal that credit risk exerts a significant negative influence on bank performance, while effective liquidity management and strong regulatory compliance significantly improve performance. Operational risk shows a marginal negative effect. Regulatory compliance emerges as the dominant predictor, affirming that governance quality — beyond mere regulatory adherence — is the primary driver of sustainable profitability among Nigerian DMBs. Implication of findings: Policymakers and bank boards should prioritize embedding genuine compliance culture as a strategic performance lever. The CBN should pair recapitalization directives with standardized governance scorecards to reinforce market discipline.
Copyright (c) 2026 Anthony Oyamendan, Debo-Ajagunna Adebolanle, Adepoju Adeoba Asaolu, Babatunde Afolabi https://creativecommons.org/licenses/by-nc/4.0
Sustainability committee structure and financial outcomes in emerging markets: insights from Nigeria
Purpose: This study examined the effect of sustainability committee structure on corporate financial performance among listed firms in Nigeria, focusing on committee size, independence, and expertise within an emerging market context characterized by evolving sustainability governance practices. Methodology: The study adopted an ex-post facto research design using secondary data sourced from audited annual reports of 50 listed firms, covering 240 firm-year observations. Corporate financial performance was measured using accounting-based indicators, while sustainability committee attributes served as explanatory variables, with firm size included as a control variable. Diagnostic tests revealed non-normality, heteroskedasticity, and model specification issues; hence, robust pooled regression was employed for estimation. Results and conclusion: The findings indicate that sustainability committee independence has a positive and statistically significant effect on corporate financial performance. However, committee size and expertise show no significant influence. The study concludes that the effectiveness of sustainability committees in Nigeria depends more on substantive independence than on structural composition. Implication of findings: The study highlights the need for firms to prioritize independent oversight in sustainability governance. It also underscores the importance of strengthening ESG competence and ensuring that sustainability committees’ function beyond symbolic compliance to achieve meaningful financial outcomes.
Copyright (c) 2026 Osarenren Aigienohuwa, Amos Sunday Adeusi https://creativecommons.org/licenses/by-nc/4.0
Basel III regulatory reforms and bank financial performance: Evidence from Nigerian deposit money banks
Purpose: This study examines how Basel III regulatory requirements affect the financial performance of Nigerian Deposit Money Banks (DMBs). Methodology: The study used panel data on 11 listed banks from 2018 to 2024, excluding 2021, which the Central Bank of Nigeria designated a regulatory transition year, and employed a fixed-effects model with cluster-robust standard errors to address unobserved heterogeneity and serial correlation. Results and conclusion: The results show that Basel III liquidity requirements have a negative impact on the profitability of the Nigerian Deposit Money Banks, which means that the higher the liquidity buffers, the less the banks can lend and invest in more profitable activities. The Basel III implementation framework also considers the short-term costs of compliance and adjustment to the reforms. Capital adequacy, funding stability, and leverage requirements, however, do not have a significant impact on profitability, indicating that these regulatory requirements were not limiting factors in the study period. The study also reveals that the larger banks do better because of economies of scale, diversification, and better operational efficiency. The study finds that Basel III reforms have increased financial resilience and prudential discipline in the Nigerian banking sector, albeit at the cost of short-term profitability in liquidity regulation. Implication of findings: The findings highlight the trade-off between regulatory compliance and financial performance in emerging markets, suggesting that banks balance liquidity buffers with profitability goals.
Copyright (c) 2026 Aliyu Abubakar, Aminu Abdullahi, Hadiza Suleiman, Mairo Abdullahi https://creativecommons.org/licenses/by-nc/4.0
Forecasting the Nigerian Exchange Group's All Share Index: application of ARIMA-GARCH hybrid models
Purpose: This study evaluates the predictive accuracy of various econometric models in forecasting stock market returns within the Nigerian Exchange Group (NGX). Given the high volatility and structural breaks inherent in emerging African markets, the research investigates whether linear (ARIMA), volatility-sensitive (GARCH), or hybrid rolling-window frameworks provide the most robust tools for financial forecasting. Methodology: Employing a quantitative design, the study analyses daily All-Share Index (ASI) closing prices (sourced from the NGX official database) from January 1, 2021, to August 30, 2025. The approach utilizes Box-Jenkins formalization for ARIMA parameters and GARCH (1,1) to account for volatility clustering, optimized via a 180-day rolling window. Stationarity was verified via ADF tests, with selection guided by the Akaike Information Criterion (AIC). Results and conclusion: Empirical findings indicate that hybrid ARIMA-GARCH models significantly outperform standalone ARIMA and GARCH models in forecasting the NGX ASI. While linear models fail to account for significant ARCH effects, the hybrid configuration markedly reduces forecast errors, as confirmed by superior MAPE and RMSE metrics. The NGX exhibits high volatility persistence, rendering traditional linear models insufficient. Findings suggest the NGX deviates from the Weak-Form Efficient Market Hypothesis, as historical patterns retain predictive value. Implication of findings: These results advise institutional investors to prioritize volatility-aware models for asset pricing and Value-at-Risk (VaR) estimations. Furthermore, they underscore the need for policymakers to implement stabilizing interventions during periods of high turbulence.
Copyright (c) 2026 Marshal Ekpete, Juliet Ifechi Kenn-Ndubuisi, Ipeghan Iyo https://creativecommons.org/licenses/by-nc/4.0
Effect of tax on the profitability of listed consumer goods firms in Nigeria
Purpose: This study examined the effect of taxation on the profitability of listed consumer goods firms in Nigeria over the period 2015–2024. Methodology: An ex-post facto research design was adopted. A purposive sampling technique was used to select 13 firms out of the 21 listed consumer goods firms, resulting in a balanced panel dataset of 130 firm-year observations. The study relied solely on secondary data obtained from published annual reports and audited financial statements of firms listed on the Nigerian Exchange Group. Profitability was measured using return on assets (ROA), while taxation was proxied by company income tax (CIT), effective tax rate (ETR), withholding tax (WHT), and tax incentives (TINC), with firm size as a control variable. Data were analyzed using descriptive statistics, correlation, and panel regression (Fixed and Random Effects), with the Hausman test guiding model selection. Results and Conclusion: Findings showed moderate profitability and no multicollinearity. The Fixed Effects Model was preferred. CIT, WHT, tax incentives, and firm size had positive significant effects on ROA, while ETR had a negative significant effect. The study concluded that taxation significantly influenced profitability. Implication of Findings: Sustained tax incentive policies are essential for enhancing profitability and growth.
Copyright (c) 2026 Romanus Chukwuma Ike, Barnabas Maduabuchi Ibekwe https://creativecommons.org/licenses/by-nc/4.0
An assessment of factors militating against enrollment of students in the field of business studies education in senior secondary schools in Katsina metropolis, Katsina State, Nigeria
Purpose: The paper assesses factors militating against students’ enrollment in the field of business studies education in senior secondary schools in Katsina Metropolis, Katsina State, Nigeria. Methodology: In the quest to obtain accurate data for the study, instrument for data collection was a structured closed ended questionnaire. The population of the studies was forty, which consists of nine examination officers, nine subject teachers and twenty-two SS1 students in total from nine selected senior secondary schools. A descriptive survey design was adopted for the study. The four (4) Likert’s rating instrument was used for easy elicitation of respondents’ opinions and subsequent analyzing of statistical data. Simple linear regression was used to test the null hypotheses at .05 significant level. Results and conclusion: Findings of the study revealed that students’ perception about business studies as a field of study, students’ self-efficacy and parent socioeconomic factors have significant influence on students’ enrollment in senior secondary schools. Implication of findings: The findings of this study have curriculum and policy implications, school and teacher implications as well as parental and community implications. Based on the findings, recommendations were made, among which is that schools should boost students’ awareness of career prospects in business studies by establishing business-related clubs, societies and competitions.
Copyright (c) 2026 Eniola Onaolapo, Eniola Onaolapo https://creativecommons.org/licenses/by-nc/4.0
Banking sector innovations and manufacturing sector performance in Nigeria
Purpose: This study evaluates the influence of banking sector innovations on manufacturing performance in Nigeria from 2010 Q1 to 2023 Q4. The research examines how digital financial tools, specifically Automated Teller Machines (ATMs), Point-of-Sale (POS) terminals, Web Payments, and Real-Time Gross Settlement (RTGS) systems, affect manufacturing output. Methodology: Utilizing an Autoregressive Distributed Lag (ARDL) model, the study analyses quarterly secondary data sourced from the Central Bank of Nigeria. Manufacturing output serves as the dependent variable, while various banking innovations represent the primary explanatory measures. Results & conclusion: Empirical results reveal a complex, non-linear relationship. While current-period coefficients for ATMs, POS, and Web payments show a negative nexus with production, their first-period lagged values exhibit a positive effect. This suggests that the benefits of financial innovation are subject to a maturity period rather than being instantaneous. Conversely, RTGS systems demonstrate a persistent negative impact. The study concludes that banking innovations currently exert a weak, inconsistent influence on Nigeria's industrial sector due to delayed adoption benefits and systemic inefficiencies. Implication of findings: Findings highlight that technological adoption without robust institutional support yields sub-optimal results. To foster an efficient ecosystem, policy efforts must prioritize resolving infrastructural bottlenecks, specifically electricity and internet unreliability. This research contributes to the Constraint-Induced Financial Innovation discourse by emphasizing the necessity of aligning fintech evolution with specific industrial needs to drive long-term economic expansion.
Copyright (c) 2026 Memoye Suotor, Marshall Simon Ekpete, Kingsley Simon Ekpete https://creativecommons.org/licenses/by-nc/4.0
Can female director on board curb earnings smoothening practices in Nigerian listed non-financial firms?
Purpose: The corporate world has shown tremendous compliance with a corporate governance code of gender sensitivity in developed countries. In the emerging markets of Africa, specifically Nigeria, companies are under tremendous pressure to ensure flexibility in the management of their business board composition. Therefore, the purpose is to provide empirical insights on female board members mitigating earnings management, which plays a critical role in shareholder confidence and corporate firm performance. Methodology: Covering a period from 2015 to 2024, of the publicly listed 111, and after filtering, 76 non-financial firms were used. This study adopted a panel dataset using fixed and random effects regression analysis to assess the relationship between female inclusion on board and earnings management. Results and conclusion: Findings reveal that women on board are negatively and statistically significantly associated with real earnings management as a result of a lack of compliance with the 30 per cent women representation on boards. This study is one of the first to provide thorough empirical support for the idea that female on the board composition mitigates earnings management practice in emerging markets and adopted all listed non-financial firms. Implication of findings: Based on the conclusion, the study recommends that policymakers, company executives, and researchers increase the number of females on board to reflect the corporate governance code of 30 per cent for effectiveness and transparency on financial reporting quality.
Copyright (c) 2025 Mohammed Ahmed, Olamide Ifeoluwa Fashagba, Abubakar Abdullahi https://creativecommons.org/licenses/by-nc/4.0
Impact of smart contracts and cryptographic security on fraud prevention in Nigerian deposit money bank
Purpose: Cyber fraud and money laundering are growing threats to the integrity of operations in the Nigerian banking sector, which undercuts the confidence of customers. This study examined the influence of FinTech solutions specifically smart contracts and cryptographic security on fraud prevention in Nigerian deposit money banks (DMBs), in view of the increasing incidence of cyber fraud and money laundering in the sector. Methodology: The study adopted a quantitative research design, underpinned by the Technology Acceptance Model (TAM), agency theory, and control theory. A cross-sectional survey was conducted on 312 management and IT employees drawn from five selected DMBs in Lagos State. Data collected were analyzed using descriptive statistics and multiple regression analysis. Results and conclusion: The findings revealed that smart contracts have a positive and statistically significant effect on the prevention of cyber fraud (r = 0.408, p < 0.001), while cryptographic security exerts a strong and significant influence on the prevention of money laundering (r = 0.433, p < 0.001). The study concluded that these FinTech solutions are effective tools for enhancing fraud prevention and improving the security architecture of Nigerian banks. Implication of findings: The study implies that deposit money banks should prioritize investment in FinTech innovations, while regulatory authorities should establish supportive frameworks to facilitate their adoption, thereby strengthening financial security and restoring customer confidence in the banking system.
Copyright (c) 2026 Oluwaseyi Ayodele Adedipe https://creativecommons.org/licenses/by-nc/4.0
Internally generated revenue efficiency in rural local governments: evidence from Gwarzo and Kabo LGAs, Kano State, Nigeria
Purpose: This study investigates how local governments generate and manage internally generated revenue (IGR) in Gwarzo and Kabo Local Government Areas of Kano State, Nigeria, with the aim of understanding its effect on public service delivery. The research is motivated by concerns over limited revenue capacity and its implications for the provision of essential community services. Methodology: A quantitative comparative case study design was adopted. Structured questionnaires were administered to 100 local government employees across both LGAs. Data was analyzed using descriptive statistics, independent sample t-tests, and Pearson correlation to assess differences in revenue generation, management efficiency, and their relationship with service delivery outcomes. Results and conclusion: The findings show that both LGAs rely on similar revenue sources, including market taxes, business permits, motor park levy, and tenement rates. Internally generated revenue was moderate in both areas, with no statistically significant differences observed. Efficiency in revenue management and institutional challenges were found to have weak and insignificant effects on service delivery and overall revenue outcomes. The study concludes that structural and systemic reforms are critical for enhancing the financial performance of local governments. Implication of findings: The results highlight the need for capacity building, improved transparency, and stronger revenue enforcement mechanisms. Expanding the revenue base, improving collection efficiency, and reinforcing accountability are essential to ensure effective service delivery and foster grassroots development in rural local governments.
Copyright (c) 2026 Yusuf Sani https://creativecommons.org/licenses/by-nc/4.0
The interplay of risk management and tax strategies: an analysis of Nigerian public companies (2013-2022)
Purpose: This study examined the relationship between risk management and tax strategies in Nigerian public companies, focusing on the effects of risk management size, accounting expertise, and independence on tax strategies measured by effective tax rate. Methodology: The study was based on risk management theory and adopted an ex-post facto research design. Secondary data were obtained from the annual reports and accounts of fifty-four (54) Nigerian public companies covering the period 2013–2022. Data was analyzed using descriptive statistics and correlation techniques. Results and conclusion: The findings showed that risk management size had a negative and significant effect on tax strategies (t = −7.074, p < 0.05). Risk management accounting expertise also had a negative and significant effect (t = −21.365, p < 0.05). In addition, risk management independence significantly influenced tax strategies (t = −16.863, p < 0.05). These results indicate that stronger risk management structures are associated with reduced tax strategy practices. The study concluded that risk management characteristics significantly influence the tax strategies of Nigerian public companies. Implication of findings: The findings imply that strengthening risk management structures can help minimize aggressive tax strategies. Therefore, Nigerian public companies should ensure an appropriately sized risk management structure, include members with strong accounting expertise, and maintain the independence of risk governance members to enhance oversight and reduce tax strategy practices.
Copyright (c) 2026 Oluwaseyi Ayodele Adedipe, Sunday Timothy Adegbite https://creativecommons.org/licenses/by-nc/4.0
ARIMA forecasting of prime lending rates from Nigeria’s financial industry
Purpose: This study investigates the behaviour and predictability of Nigeria’s prime lending rates from 1990 to 2026. The research identifies structural shifts, volatility patterns, and the effectiveness of autoregressive components in forecasting interest rate movements within the Nigerian financial ecosystem. Methodology: Adopting an ex post facto research design, the study utilizes monthly time-series data from the Central Bank of Nigeria. In this univariate framework, the prime lending rate serves as the dependent variable, while its own lagged values (AR) and stochastic shocks (MA) function as the independent variables. The analysis involves unit root testing, heteroscedasticity evaluations, and lag identification via ACF and PACF to fit an optimal ARIMA model. Results & conclusion: Findings reveal the PLR is integrated into order one, I(1), with a significant structural shift in January 1990. ARIMA (2,1,2) emerged as the most robust model for capturing mean fluctuations. However, residual diagnostics indicate significant volatility clustering and non-normality, suggesting that while the model effectively predicts price direction, it does not fully account for variance shocks over time. Implication of findings: Precise forecasting is essential for managing interest rate risk and credit pricing. The research recommends that the Central Bank of Nigeria and financial institutions integrate GARCH-type models with ARIMA frameworks to account for volatility clustering. Such evidence-based modelling is critical for developing resilient monetary policies and mitigating systemic financial instability.
Copyright (c) 2026 Marshall Simon Ekpete https://creativecommons.org/licenses/by-nc/4.0
Effect of energy price hikes on the survival of micro, small, and medium scale enterprises in Ekiti State
Purpose: This study examined the effect of energy price hikes on the survival of Micro, Small, and Medium Enterprises (MSMEs) in Ekiti State, Nigeria, with a focus on electricity tariff increases and fuel subsidy removal. The aim was to understand how changes in energy costs influence MSME continuity and resilience. Methodology: Data was collected through a structured survey administered to MSME operators, yielding 388 valid responses. Ordinary Least Squares (OLS) regression was employed to assess the relationship between energy price changes and MSME survival, allowing for a quantitative evaluation of the effects of electricity and fuel cost fluctuations. Results and conclusion: The analysis revealed that increases in electricity tariffs have a positive but statistically insignificant effect on MSME survival, indicating that electricity price hikes alone do not substantially affect business continuity. Conversely, the removal of fuel subsidies has a negative and statistically significant effect on MSME survival, demonstrating that higher fuel costs pose a tangible threat to the sustainability of these enterprises. These findings suggest that while electricity pricing may not critically hinder MSMEs, fuel costs are a major operational challenge that could undermine business stability if not addressed. Implication of findings: Policymakers should prioritize measures to mitigate the adverse effects of rising fuel costs on MSMEs, such as targeted subsidies, fuel cost management strategies, or promotion of cost-effective energy alternatives. By focusing on energy cost components that significantly impact business survival, interventions can strengthen MSME resilience, support local economic development, and inform energy policy decisions in Ekiti State.
Copyright (c) 2026 Babajide Francis Fadaka, Pelumi Abdulmalik Adewumi https://creativecommons.org/licenses/by-nc/4.0
Assessing the impact of corrupt practices on public sector accounting performance in Kano State
Purpose: The purpose of this study is to assess the impact of corrupt practices on public sector accounting performance in Kano State, with a focus on how corruption affects transparency, accountability, and efficiency in financial reporting and resource management. Methodology: The study adopted a descriptive research design. Primary data were collected through a structured questionnaire using a 5-point Likert scale. The population comprised 75 personnel from the Kano State Ministry of Finance, including accountants, auditors, cashiers, and other financial officers. Due to the manageable population size, a census sampling technique was employed. Out of 75 questionnaires administered, 66 were completed and returned, yielding an 88% response rate. Data were analyzed using mean and standard deviation in SPSS. Results and conclusion: The results indicate that corruption persists in Kano State's public sector, substantially undermining transparency, accountability, and overall accounting performance. It was concluded that corrupt practices significantly distort financial information, weaken internal controls, and reduce the efficiency of public sector accounting functions. Implication of findings: The findings reveal that corruption severely undermines public sector accounting performance, erodes trust in institutions, and hampers effective resource management in Kano State, necessitating urgent reforms for transparency and accountability.
Copyright (c) 2026 Mansur Sunusi https://creativecommons.org/licenses/by-nc/4.0
Effect of public debt management on budget implementation performance: evidence from selected states in Nigeria
Purpose: This study investigated the effect of public debt management on budget implementation performance in Nigerian states. Specifically, the study analysed the effect of the domestic debt management ratio and the external debt management ratio on the budget implementation performance of selected states in Nigeria. Methodology: The study captured a total of 18 states randomly selected across the 6 geopolitical zones of Nigeria. Panel-based data were collected across the 18 states over a period of 10 years spanning from 2014 to 2023. Data collated were analysed using correlation estimation, panel pooled OLS estimation, and fixed effect estimation. Results and conclusion: Results revealed that the domestic debt management ratio exerts an insignificant negative effect on the budget implementation performance of states in Nigeria. (-0.0292211, p > 0.05). The external debt management ratio, on the other hand, exerts a positive insignificant effect on budget implementation performance (0.0609831, p > 0.05). This study concludes that domestic debt management has an insignificant tendency to impede budget implementation performance among states in Nigeria, just as external debt management has an insignificant likelihood to improve budget implementation, though it does not pose any negative threat. Hence, this study recommends, among others, that state governments should ensure efficient and effective domestic and external debt management systems that create a minimal level of debt relative to total revenue for efficient and effective budget implementation. Implication of findings: The findings of this study suggest that state governments in Nigeria should take necessary steps to manage their domestic and external debt profiles to enhance their capacities for effective budget implementation.
Copyright (c) 2026 Victoria Bamitale Aremu https://creativecommons.org/licenses/by-nc/4.0
Impact of capital structure on financial performance of listed consumer goods companies in Nigeria
Purpose: This study examines the impact of capital structure on the financial performance of listed consumer goods companies in Nigeria. Methodology: The study covers a 14-year period (2010–2024). Capital structure is proxied by Total Debt to Total Assets (TDTA), Long-Term Debt to Total Assets (LTDA), and Total Debt to Equity (TDTE), while financial performance is measured using Return on Assets (ROA) and Tobin’s Q. Secondary data were sourced from the Nigerian Exchange Group (NGX) for 16 listed consumer goods firms that met the selection criteria. The study employed descriptive statistics, correlation matrix, and panel regression analysis using Panel Corrected Standard Errors (PCSE) to test the hypotheses. Result and conclusion: The findings reveal that TDTA and LTDA have significant positive effects on ROA, while TDTE exerts a significant negative effect, implying that asset-based and long-term debt financing enhance profitability, whereas excessive equity-based leverage reduces it. For Tobin’s Q, TDTE and firm size show significant negative effects, Implication of findings: Indicate that high leverage and larger firm size are associated with lower market valuation. The study concludes that an optimal mix of debt financing is critical for enhancing firm profitability and market value. It recommends that managers of consumer goods firms should carefully structure their capital mix, with more emphasis on long-term debt financing, while avoiding excessive equity-based leverage to improve both profitability and shareholder value.
Copyright (c) 2026 Aliyu Suleiman Kantudu, Junaidu Mohammed Kurawa, Muhammad Shehu Garba https://creativecommons.org/licenses/by-nc/4.0
Macroeconomic variables and banking sector index performance: evidence from the Nigerian Exchange Group (NGX)
Purpose: This study investigates the effect of exchange rates, interest rates, and inflation on the Banking Sector Index of the Nigerian Exchange Group. It addresses the gap in sector-specific evidence, as aggregate market analyses often obscure how macroeconomic shocks uniquely influence banking sector performance separately. Methodology: Using an ex post facto design, the study analyzes monthly secondary data from 2012 to 2024 obtained from the Nigerian Exchange Group and the National Bureau of Statistics. The Vector Error Correction Model (VECM) was employed to examine both short-run dynamics and long-run equilibrium relationships among the variables. Results and conclusion: The findings confirm a significant long-run cointegrating relationship between the macroeconomic variables and the Banking Index. Exchange rate depreciation negatively affects the banking sector’s performance over the long term, while inflation exerts a strong positive long-run impact. Interest rates show no significant long-run relationship with the index. The error correction mechanism indicates a stable adjustment process, correcting approximately 13.2% of monthly disequilibrium. The study concludes that while the banking sector benefits from inflation, sustained currency depreciation poses a long-term threat. Implication of findings: The results imply that policymakers should place more priority on exchange rate stability. For investors and analysts, the findings suggest a need to emphasize exchange rate trends and inflation over interest rates when evaluating banking sector performance.
Copyright (c) 2026 Ibrahim Kukandaka https://creativecommons.org/licenses/by-nc/4.0
Impact of leverage, firm size on firm ownership of listed industrial goods firms in Nigeria
The study examines the impact of leverage and firm size on firm ownership of listed industrial goods firms in Nigeria. The dependent variable firm ownership is measured with managerial ownership (MO), foreign ownership (FO), and institution ownership (IO), while the independent variables are leverage (LEV) and firm size (FS). The data was extracted from the Nigerian Exchange group (NGX) annual report of listed industrial goods firms in Nigeria. The study covers a period of 10 years (2013–2023). The study used descriptive statistics, correlation matrix, and regression analysis to analyze data. The study found managerial ownership (MO) has a positive correlation with leverage (LEV), and firm size (FS), foreign ownership (FO) has a negative correlation with leverage (LEV) and a positive correlation with firm size (FS), institutional ownership (IO) has a negative correlation with leverage (LEV) and a positive correlation with firm size (FS). It was recommended that management should focus on their ownership structures, specifically managerial, foreign, and institutional ownership. Transparent governance practices and a balanced ownership distribution are suggested to enhance investor confidence and attract foreign and institutional investment.
Copyright (c) 2026 Muhammad Shehu Garba https://creativecommons.org/licenses/by-nc/4.0
Impact of firm size, firm age on the profitability of listed consumer goods firms in Nigeria
Purpose: This study investigates the impact of firm size and firm age on the profitability of listed consumer goods firms in Nigeria. Methodology: The study utilizes panel data covering 13 years (2010–2022) obtained from the annual reports of consumer goods firms listed on the Nigerian Exchange Group and employs regression analysis to examine the effects of Firm Size (FS) and Firm Age (FA) on profitability measured by Return on Equity (ROE) and Return on Assets (ROA). Results and conclusion: The regression results show that the overall model is statistically significant for ROE but not significant for ROA, while firm Size does not exhibit a statistically significant relationship with profitability; firm age demonstrates a statistically significant negative relationship. Implication of findings: It indicates that older firms tend to experience lower profitability, possibly due to rigidity and reduced adaptive capacity over time. The findings imply that stakeholders should not rely solely on firm size and age in assessing profitability but should also consider operational efficiency, industry dynamics, management effectiveness, capital structure, financial ratios, and prevailing market conditions, while future studies are encouraged to incorporate broader variables and larger samples to generate more comprehensive insights.
Mediating effects of information asymmetry and cost of capital on the relationship between financial reporting quality and investment efficiency of listed deposit money banks in Nigeria
Purpose: The purpose of this paper is to examine the serial mediating effects of information asymmetry (IA) and cost of capital (COC) on the relationship between financial reporting quality (FRQ) and investment efficiency (IE) of listed Deposit Money Banks (DMBs) in Nigeria over ten-year period (2008-2017) using Barron and Kenny's (1986) mediation model steps. Methodology: The paper employed ex-post facto research design. Its population covered fourteen (14) DMBs that remained listed from 31st December, 2008 to 31st December, 2017. The data required for the study was available and so, census sampling technique was used to cover the entire fourteen (14) banks. Secondary sources of data comprising published annual reports and accounts of the listed DMBs and Thomson Reuters Data stream were used. The techniques of data analysis used are OLS, GLS and FGLS regression. Results and Conclusion: The results found are that FRQ affects both Underinvestment (Underinv) and Overinvestment (Overinv) directly and indirectly through its effect on IA and COC of listed DMBs in Nigeria. Hence, the paper concluded that IA and COC mediate the relationship between FRQ and Underinv/Overinv of listed DMBs in Nigeria. Implications of Findings: Practically, the findings imply that the level of IE in the Nigerian banking industry will improve if the listed DMBs adopt the practice of reporting comprehensive and relevant information to capital providers.
Copyright (c) 2026 Sunusi Ridwan Ayagi https://creativecommons.org/licenses/by-nc/4.0
Capital structure, board characteristics and financial performance of listed consumer goods companies in Nigeria
Purpose: The main objective of the study is to examine the moderating effect of board characteristics on the relationship between capital structure and financial performance of listed consumer goods companies in Nigeria. Methodology: The study utilized a secondary source of data collection, which was obtained from the annual reports and accounts of listed consumer goods companies in Nigeria for a period of fourteen years (2010-2023). The panel data are analyzed using descriptive statistics, Pearson correlation, and regression analysis. Results and conclusion: The findings reveal that capital structure has a significant impact on the financial performance of the sampled companies. Board composition has an insignificant impact on the financial performance (ROA and Tobin’s Q) of listed consumer goods companies in Nigeria. More so, board composition does not moderate the relationship between capital structure and financial performance of listed consumer goods companies in Nigeria. Implication of findings: The conclusion implies that the relationship between capital structure and financial performance cannot be moderated by board composition. It is therefore recommended that management of consumer goods companies in Nigeria should maintain a capital structure that is balanced between debt and equity. This will help to reduce the cost of capital and improve the firm's financial flexibility. Similarly, management should use debt financing strategically to fund productive investments. These steps will help to increase the firm's profitability and return on equity. Increasing the proportion of independent directors on the board will help improve the board's independence and effectiveness, which can lead to better decision-making and firm performance.
Modelling firm export intensity under electricity infrastructural constraints in Nigeria: a fractional logit approach
Purpose: This study examines the effect of electricity infrastructure constraints on the export intensity of firms in Nigeria. It aims to determine how both operational disruptions and economic losses associated with unreliable electricity supply influence firms’ ability to compete and scale in the global market within the broader context of export-led economic diversification and industrial growth. Methodology: The study employs a fractional logit estimation technique to analyse firm-level data obtained from the World Bank Enterprise Survey (2025) covering Nigerian firms across various industries. Key control variables incorporated into the model include firm size, firm age, access to finance, and foreign ownership, as well as industry-specific and regional heterogeneity, ensuring robustness in the estimation. Results and conclusion: The findings reveal that electricity constraints exert a statistically significant negative effect on export intensity. Specifically, operational constraints show coefficients ranging from -0.297 to -0.354, while economic constraints measured as the percentage of sales lost due to power outages range from -0.721 to -0.894, indicating a stronger adverse impact. The study concludes that unreliable electricity supply significantly undermines firms’ export performance in Nigeria, with economic losses being particularly detrimental. Implication of findings: The results underscore the critical need for comprehensive electricity sector reforms aimed at improving reliability and reducing outage-related costs. In addition, complementary policies should be implemented to support firm expansion, attract export-orientated foreign direct investment, and improve access to long-term, affordable export financing. These measures are essential to enhance export competitiveness, promote industrial growth, and achieve sustainable economic diversification in Nigeria.
Copyright (c) 2026 Adamu Jibrilla https://creativecommons.org/licenses/by-nc/4.0
Can financial inclusion reduce income inequality? Evidence from Nigeria
Purpose: This study examines the effect of financial inclusion on income inequality in Nigeria. Specifically, it evaluates whether improvements in financial access, alongside selected macroeconomic variables, significantly influence the level of income inequality in the country. Methodology: The study adopts an ex post facto research design using annual time-series data for Nigeria. The population of the study comprises all annual macroeconomic observations relevant to financial inclusion and income inequality in Nigeria within the study period. Based on data availability and consistency across sources, the study uses annual observations covering 1985–2020. Data were obtained from the World Development Indicators, Central Bank of Nigeria Statistical Bulletin, Federal Ministry of Education reports, and the Standardized World Income Inequality Database. The study employs Ordinary Least Squares and Newey-West regression techniques for estimation. Results and conclusion: The findings show that financial inclusion exerts a reducing effect on income inequality in Nigeria. Economic growth also contributes to inequality reduction, while inflation and real interest rate tend to worsen inequality. Government spending shows a negative but weak effect on inequality, while primary school enrolment does not exert a statistically significant short-run effect. The study concludes that financial inclusion is an important instrument for promoting a more equitable income distribution in Nigeria. Implication of findings: The findings imply that policies aimed at expanding access to financial services, strengthening macroeconomic stability, and improving the efficiency of public spending are essential for reducing income inequality and promoting inclusive growth in Nigeria.
Copyright (c) 2026 Hafiz Ismail, Habiba Bello, Ahmad Danjuma, Sadiq Dalil Wakili https://creativecommons.org/licenses/by-nc/4.0
Integrating digital forensics and machine learning for fraud detection in Nigerian deposit money banks: a PLS-SEM and artificial neural network approach
Purpose: This study examines the association between digital forensic capabilities and fraud detection effectiveness in Nigeria’s five largest deposit money banks—United Bank for Africa Plc, Zenith Bank Plc, Access Bank Plc, First Bank Nigeria Limited, and Guaranty Trust Bank Plc. Specifically, it evaluates the relative contributions of network forensics, cloud forensics, mobile forensics, and Internet of Things (IoT) forensics to fraud detection effectiveness. Methodology: A cross-sectional survey design was adopted, with data collected through structured questionnaires administered to staff of the selected banks. Of the 306 questionnaires distributed, 243 valid responses were obtained, representing a 79% response rate. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test hypothesized relationships and Artificial Neural Network (ANN) analysis to assess predictive importance. PLS-SEM analysis was conducted using JASP version 0.95.3, while ANN estimation employed a multilayer perceptron model in SPSS version 27. Results and conclusion: The PLS-SEM results indicate that digital forensic capabilities jointly explain a substantial proportion of variance in fraud detection effectiveness with all R² > 0.75. Cloud forensics (β = 0.515) and network forensics (β = 0.500) exhibit the strongest associations, followed by IoT forensics (β = 0.456) and mobile forensics (β = 0.449). ANN results corroborate these findings, ranking cloud forensics as the most important predictor (normalized importance = 100%), closely followed by network forensics (99.7%), mobile forensics (85.3%), and IoT forensics (79.8%). Implication of findings: The study implies that bank management should prioritize investment in cloud and network forensic infrastructures, complemented by targeted training and process integration, to enhance fraud detection performance. However, the cross-sectional and self-reported nature of the data limits causal inference, indicating the need for future longitudinal studies using objective fraud performance indicators.
Copyright (c) 2026 Ridwan Adebisi Sanusi , Ibraheem Sanusi, D. O. B. Briggs https://creativecommons.org/licenses/by-nc/4.0
Assessing the effect of information analysis on the containment of financial crimes in Nigeria
Purpose: This paper assesses the effect of Information Analysis (IA) on the containment of financial crimes in Nigeria. Methodology: Cross sectional research design was used to examine the relationship between the variables of the study. A total of 454 structured questionnaires were administered to staff of compliance departments in CBN, DMBS, EFCC and NFIU. Data collected was subjected to various diagnostic tests such as normality, reliability and validity using IBM-SPSS V.26 software. Correlation and multiple linear regressions analyses were employed for the analysis of data. Results and conclusion: The study found that IA significantly affects the containment of financial crimes in Nigeria. The result for multiple regression analysis indicates that IA is a significant variable in influencing the containment of financial crimes in Nigeria. Implication of findings: The study recommends that Reporting Entities (Res) and Law Enforcement Agencies (LEAs) should ensure that they comply with IA to effectively and efficiently contain FCs in Nigeria.
Copyright (c) 2026 Jonathan Daboh Tagang, Samaila I Ningi , Ado Ahmed, Shittu O Ibrahim https://creativecommons.org/licenses/by-nc/4.0
Outsourcing accounting services and accountability: evidence from small and medium scale enterprises in Osogbo, Osun State, Nigeria
Purpose: This study investigated the influence of accounting activities outsourcing on accountability in small and medium-scale enterprises (SMEs) in Osogbo, Osun State, Nigeria. Methodology: The survey research design was employed for the study, with the population of the study consisting of 120 registered small and medium-scale enterprises (SMEs) operating in Osogbo. The convenience sampling technique is adopted in selecting 100 respondents from the SMEs to make up the sample size of the study. Data for the study were collected using questionnaires. The study adopted correlation and regression analysis to examine the relationship and effect of the explanatory variables on the dependent variables. Results and conclusion: The study found that accounting activities outsourcing has a positive significant effect on transparency while it has a negative effect on the relevance of financial activities. Also, accounting activities outsourcing has a non-significant effect on accountability. The study therefore recommends that SMEs should engage professional accounting services to improve transparency, ensure outsourced accounting functions are properly monitored to maintain relevance, and complement outsourcing with internal controls to enhance overall accountability. Implication of findings: The implication of this study is that outsourcing accounting activities can improve transparency in SMEs but may reduce the relevance of financial information if not properly managed. It also suggests that outsourcing alone does not guarantee accountability without adequate supervision. SMEs should therefore manage outsourced accounting functions strategically to enhance transparency, relevance, and accountability.
Copyright (c) 2026 Samuel Oladele Obisesan, Blessing Onyi Akinde, Oluwatimileyin Esther Adenle, Lukmon Adewale Adeoye, Richard Oluwatayo Ewuola https://creativecommons.org/licenses/by-nc/4.0
Audit market competition, opinion shopping, and audit quality: Evidence from audit firms in Nigeria
Purpose: This study is motivated by the intense competition in the audit market environment which fosters audit opinion shopping practices, eventually raising critical concerns about the credibility of audit. The research examines the extent of audit opinion shopping in Nigeria, the influence of market competition on such behaviour, and the implications for audit quality. Methodology: A descriptive and correlational research design was adopted, using primary data collected from 200 auditors. Responses were analyzed using the Statistical Package for the Social Sciences (SPSS), employing descriptive statistics, reliability tests, and regression techniques. Results and conclusion: The descriptive analysis results revealed evidence of audit opinion shopping among Nigerian firms, with market competition exerting a significant influence on the likelihood of such practices. The findings also revealed that opinion shopping significantly affects audit quality, particularly in relation to timeliness, comparability, and reliability of financial statements. The study concludes that while competition may enhance efficiency in the audit market, it also provides opportunities for opportunistic opinion shopping, which undermines audit quality. Implication of findings: It recommends stronger regulatory oversight, improved enforcement of auditor independence, and the adoption of governance mechanisms that discourage frequent auditors switching for favourable opinions.
Copyright (c) 2026 Oluwamayowa Olalekan Iredele, Regina Christina Fidelis https://creativecommons.org/licenses/by-nc/4.0
Financial development, remittances and access to education in Nigeria
Purpose: This study investigates the effects of financial development, remittances and their interaction on access to education in Nigeria. Methodology: The study used the Autoregressive Distributed Lag and Dynamic Ordinary Least Squares technique on time-series data sourced from the International Monetary Fund, the World Bank and the Central Bank of Nigeria for the period 1980 to 2021. Results and conclusion: Findings from the analysis reveal that remittances had a statistically significant and positive effect on access to education in the short and long run, unlike financial development, which was negative and non-significant. When both variables were interacted, a negative and non-significant effect was observed suggesting that a developing financial sector does not mediate the positive impact of remittances on education in Nigeria. Additionally, government expenditures on education positively and significantly enhances access to education. Implication of findings: Policy makers and relevant stakeholders in the financial and educational sectors in Nigeria should intensify ways to improve access to formal financial services, develop financial products and services tailored towards education and provide incentives to channel remittances aimed at funding education.
Copyright (c) 2026 FUDMA Journal of Accounting and Finance Research [FUJAFR] https://creativecommons.org/licenses/by-nc/4.0
Effect of artificial intelligence on audit practices: empirical evidence from auditors in Southern Nigeria
Purpose: This study examines the effect of artificial intelligence (AI) on audit practices. This study aims to determine whether AI will affect auditing practices in any way. This investigation was supported by the Task–Technology Fit (TTF) theory. Methodology: Using a structured questionnaire and a research survey design, data was gathered from primary sources. The study's sample size consisted of 316 auditors from audit firms in southern Nigeria. Multiple regression analysis was used to determine the kind and strength of correlations between the study variables. Results and conclusion: Findings show that the p-value of 0.0391 was less than 0.05, the results demonstrated that machine learning (ML) significantly affects auditing practices (AUP). A p-value of less than 0.05 indicates that expert systems (ES) have a substantial impact on auditing practices (AUP), and a p-value of less than 0.05 indicates that natural language processing (NLP) has a significant impact on auditing practices (AUP). The results of the study demonstrated that artificial intelligence (ML, ES, and NLP) significantly and favorably impacted auditing practices. Implication of findings: To improve efficiency, accuracy, and fraud detection skills, audit firms and regulatory agencies should proactively incorporate Artificial Intelligence (AI) techniques into audit practices. To automate regular audit processes, analyze vast amounts of financial data in real time, and more successfully discover abnormalities or dangers than using traditional approaches, technologies like machine learning, expert system, and natural language processing should be implemented.
Copyright (c) 2026 kenny Esosa Orumwense, Joy Ogbebor https://creativecommons.org/licenses/by-nc/4.0