Tax Expenditure in Sub Saharan Africa: The Nigerian Experience

The Nigerian government established the National Economic Empowerment and Development Strategies(NEEDS) in 2003 to achieve its trade policy of which the reform of Nigeria Custom Services is one of the major functions. Over the years, custom and excise duties have been major sources of revenue apart from crude oil.However, the problems of corruption, fraud and malpractices together with inefficiencies and ineffectiveness in operations have hindered the desire to contribute maximally to the economic development of the nation. The central objective of trade policy was to provide protection for domestic industries and reduce the perceived dependence on imports; reduce level of unemployment and generate more revenues from the non-oil sector,hence tariffs on raw materials and intermediate capital goods were scaled down. Duty exemptions and concessions remain some of the quantitative policy instruments for attracting investment and boost domestic production. This paper will review; discuss Tax Expenditure and the Nigerian experience, especially on loss of revenue from custom

STRATEGIC PLANNING AND PERFORMANCE: CATALYST FOR SUSTAINABILITY AND STABILITY IN THE NIGERIAN FINANCIAL SECTOR

The painful upheavals in so many companies in recent years reflect the failure of one-time industry leaders to keep up with the accelerating pace of industrial change and institute strategic policies. It was observed that the Nigerian Financial Sector is one of those sectors that have failed to keep up with the accelerated pace of change in the global economy. The Nigerian financial sector has experienced financial distress from pre-independence to date leading to the liquidation of financial institutions and loss of investments. The objective of this paper is to evaluate strategic planning and performance as catalyst for business sustainability and stability in the sector. The study is empirical with the use of research survey. Multivariate Analysis of Variance (MANOVA) was employed to analyze the results of the field survey and the testing of the hypotheses formulated in null form. The results of the surveys show that strategic planning was not properly instituted and in some cases missing in the financial sector which created serious problems for the nation. The paper recommends the transformation of the industry by reinventing strategy and run away from reengineering which is a dead end

Tax Expenditure in Sub Saharan Africa: The Nigerian Experience

The Nigerian government established the National Economic Empowerment and Development Strategies (NEEDS) in 2003 to achieve its trade policy of which the reform of Nigeria Custom Services is one of the major functions. Over the years, custom and excise duties have been major sources of revenue apart from crude oil. However, the problems of corruption, fraud and malpractices together with inefficiencies and ineffectiveness in operations have hindered the desire to contribute maximally to the economic development of the nation. The central objective of trade policy was to provide protection for domestic industries and reduce the perceived dependence on imports; reduce level of unemployment and generate more revenues from the non-oil sector, hence tariffs on raw materials and intermediate capital goods were scaled down. Duty exemptions and concessions remain some of the quantitative policy instruments for attracting investment and boost domestic production. This paper will review; discuss Tax Expenditure and the Nigerian experience, especially on loss of revenue from customs. Keywords: Custom duties, Revenue, Duty exemptions, Domestic production, Development

Intellectual Capital, Information Asymmetry and Cost of Equity Capital of Listed Consumer Goods in Nigerian Exchange Group

The objective of this study is to investigate statistically the influence of intellectual capital disclosure (IC) on cost of Equity capital. The study focused on listed consumer goods companies in Nigerian Exchange Group. The ex-post facto research approach was employed, using panel data sourced from published yearly financial reports of selected firms. The study covered 10 years from 2011 to 2020. Descriptive and inferential statistical tools were used in analyzing the data. The findings confirmed our hypotheses that specify the presence of a substantial and negative relationship between intellectual capital reporting with its four mechanisms (Physical capital, human capital, structural   capital and Relational) and the cost of equity). The study found that intellectual capital reporting had significant effect on cost of equity capital of listed consumer goods in Nigerian Exchange Group (AdjR2 = 0.3733; F-Stat. = 1.122; p = 0.034). Nonetheless, the results also showed that the controlling effects of information Asymmetry has a positive and insignificant influence on the Cost of common stock capital of consumer goods firm in Nigeria. The outcomes of this study are of great significance to rule formulators and organizations. Precisely, the knowledge of the influence of Intellectual capital reporting on cost of common stock of capital benefits policy formulators in the assessment of the costs and gains of disclosure. Furthermore, in relation to executives of companies, the findings revealed the advantage of improved IC reporting concerning the lessening in their cost of capital. This paper provides pragmatic confirmation of the relationship between Cost of equity capital and the extent of reporting in the four separate intellectual capital classifications (Physical, human; relational and structural capital). Keywords: intellectual capital; Human Capital VAIC model; Consumer Goods, Cost of Equity Capital DOI: 10.7176/PPAR/13-2-05 Publication date:March 31st 202

Evaluation of Return on Assets on Market Capitalization of Quoted Construction/Real Estate and Conglomerate Companies in Nigeria

The firm assets earning power has been a subject of discussion globally in relation to the value of a firm due to various decisions of managers and the effect it has on company’s performance. Various corporate actions and information about the companies are disseminated over time and studies have shown the effect on firms’ value. This study examined the effect of return on asset on market capitalization of listed construction/real estate and conglomerate companies in Nigeria. The study adopted ex-post facto research design. A sample of 8 construction/real estate and 5 conglomerate companies from a target population of 168 firms listed on the Nigerian Stock Exchange (NSE) during the study period (2010-2018) was purposively drawn. The study used secondary data from the NSE, CBN and companies’ data on the Bloomberg Terminals. Validity and reliability were premised on the statutory audit of the financial statements. The data was analyzed using (Correlation and Regression) statistics. The findings in this study shows that return on asset has significant effect on the market capitalization of the selected quoted construction/real estate and conglomerate companies in Nigeria. This study recommends that the construction/real estate and conglomerate companies should create policies that will encourage proper utilization of its assets for a better return which will encourage investors and subsequently the firms’ value

Sustainability Reporting and Discretionary Accruals of Multinational Corporations in Sub-Saharan Africa

The quality of accounting information has attracted considerable interests among many scholars, investors, and other stakeholders worldwide. Earnings management is one of the factors responsible for this development. However, studies have shown that sustainability reporting can assist companies in reducing information asymmetry which encourages earnings’ manipulation. Hence, the paper investigated how sustainability reporting could influence accrualsbased earnings management among multinational corporations in Sub-Saharan Africa countries. The research’ design wasex-post facto. All the 48 multinational companies in thesub-Saharan Africa countries constituted the study’s population. Purposive sampling technique was used in selecting 5 multinational companies from each of 10 sampled countries based on data availability. The data for the period 2010-2019 were obtained from the published annual financial reports of the sampled multinational companies and the Global Reporting Initiatives (GRI)’s sustainability guidelines. The study revealed that the lag of discretionary accruals, corporate governance sustainability reporting and economic sustainability reporting had positive relationship with discretionary accruals, while social sustainability reporting and environmental sustainability reporting were negatively linked to discretionary accruals. Additionally, the study found that sustainability reporting jointly had significant effect on discretionary accruals of multinational corporations in Sub-Saharan Africa (Adj. R2 = 0.33, W(6, 444 ) = 668.67, P<.05).This study concluded that sustainability reporting exerted significant influence on discretionary accruals of multinational corporations in Sub-Sahara Africa. The study recommended that management of multinational corporations in sub-Saharan Africa should ensure strict compliance with sustainability reporting so as to improve the earnings quality. Keywords: Sustainability reporting, environmental reporting, economic reporting, social reporting, corporate governance reporting, earnings management, discretionary accruals. DOI: 10.7176/RJFA/12-24-02 Publication date: December 31st 202

Human Capital Diversity and Relevance of Accounting Information of Quoted Manufacturing Companies in Nigeria

Relevance of accounting information has been beset with the major problem of unethical practices such as aggressive earnings management, non-compliance with company’s corporate governance, and unhealthy focus on making the financial statements look attractive which seems prevalent in the quoted manufacturing companies in Nigeria. These incidentally affect the companies reporting and also have a major impact on various human capital diversity.  On the other hand, most financial reports do not indicate cogent factors that affect financial condition and the components of human capital diversity. The study investigated the effect of human capital diversity on relevance of accounting information of quoted manufacturing companies in Nigeria.The study employed survey research design. The population of the study was two thousand nine hundred and seventy employees of quoted manufacturing companies on the Nigerian Stock Exchange (NSE). Stratified and purposive sampling technique were used and a total of six hundred and seventy (670) were distributed out of which 600 copies were properly filled and returned representing 89.55% success rate. The Cronbach Alpha reliability coefficient range between 0.710 and 0.972. The data were analysed using descriptive and inferential  (multiple regression )statistics.The study found that human capital diversity has significant effect on the relevance of accounting information Adjusted R2 = 0.250 ; (F4, 449) = 59.5, p < 0.05). The study concluded that human capital diversity has significant effect on the relevance of accounting information of manufacturing companies in Nigeria. The study recommended that governments and its agencies should provide good  environment for human assets to showcase their diversity through political influence, religious influence, social influence, and intellectual influence to enhance quality provision of relevant of accounting information. Keywords:Financial Information, Financial Reporting Quality, Human Capital Diversity, Manufacturing Companies, and Non-financial information DOI: 10.7176/RJFA/13-10-01 Publication date:May 31st 202

INDIRECT TAXES AND ECONOMIC GROWTH OF NIGERIA - THE REVENUE DIVERSIFICATION AGENDA

Achieving sound economic growth is one of the major priorities of economic regulators. Nigeria economy majorly built on oil revenue in which unpredictability nature of the oil sector might adversely affected economic growth. Indirect taxes serve as the diversification means of generating revenue for an economy, but Nigeria economy has been characterized with challenges of high level of tax gap, mono-dependent oil revenue generation and weak tax system. These challenges have created problem of poor indirect tax revenue generation and deterioration in Nigeria economic growth rate. The objective of the study is to examine the effect of indirect taxes (VAT) and (CED) as economic revenue diversification on Nigeria economic growth in Nigeria. The study used expost facto research design with focused on RGDP, VAT, CED, interest rate and exchange rate in Nigeria within the period of 1995-2019. Autoregressive Distributed Lag (ARDL) method of analysis was employed, while unit root test was carried out among study variables and results shown that there were mixed levels of stationarity. Finding revealed that the short-run model indicated that CED, INT and EXR were major short-run determinants of Nigeria economic growth, while VAT was not short-run determinants of economic growth. Also, finding established that long run estimates established that, VAT, CED and INT show positive signs, indicating they influence RGDP positively while EXR has negative effect on GDP . The study concludes that both in the short and long runs VAT, CED, INT and EXR affect Nigeria economic growth. The study recommends that for an economy to achieve growth government should ensure that VAT, CED and INT are not highly charged on investors and consumers when buying products and services, acquiring raw materials from other countries, and seeking loan in the bank

Application of Responsibility Accounting to Productivity Evaluation in the Nigerian Quoted Companies

The study was designed to identify measure of performance that is related to shareholders wealth and that managers can directly observe and can see the influence of their actions in their responsibilities. The primary objective of business is to maximize the shareholders wealth. The measurement of firm’ s productivity is a good indicator to assess the realization of this objective. The responsibility to achieve this goal however lies heavily in the hands of managers which has become a major challenge in profit oriented organizations. It has been observed that responsibility accounting application to evaluate productivity is missing in Nigerian quoted companies, while in some it is not well instituted and administered. The research work adopted an ex-post facto research design, with a focus on the quoted Nigerian quoted companies as at 31st December 2016.A sample size of 53 companies was selected by using a combination of stratified and purposive sampling techniques. Productivity was proxied by earnings per share while Responsibility accounting was proxied by cost of sales, operating cost, net income and Return on Asset. Descriptive and inferential statistics were used for data analyses. The data collected were analyzed using specified regression models with the aid of E-View statistical package. The findings showed that responsibility accounting variables of cost of sales, operating cost, net income and return on assets have positive and significant impact on earnings per share with p values of t statistics < 0.05.The joint effect of cost of sales, operating cost, net income and return on asset on earning per share is significant. The F-statistics and Adjusted R2 values were prob.F=0.000,R2=0.37.The Adjusted R2 value was not strong in explaining the variations in earning per share. This implied that cost of sales, operating coat, net income and return on asset do not sufficiently explained variations in earning per share. We concluded that responsibility accounting has a significant positive effect on productivity in Nigerian quoted companies. This showed that if all the independent variables can be efficiently managed and controlled, value will be created in the quoted companies. We recommended that managers in profit centres, cost centres and investment centres should focus their actions towards the company’s productivity and maximization of the company’s value and shareholders wealth