Taxation Alternative Source of Revenue in Nigeria: A Domineering Evidence of Petroleum Profit Tax

The study firstly, theoretically unveiled militating factors bedevilling and denying Nigerian government revenue from the taxation. Some of these factors are free rider problem, the vicious circle of negligence, the monster called corruption, terrorists and militancy, rich tax dodgers, ‘oso’ tax and others. Secondly, data were collected through the secondary source for the period of 12yrs (2004-2015). The regression analysis results indicate an overall statistical significant relationship between tax income and total revenue. Notwithstanding the overall statistical significance that exists between the tax revenue and total revenue, Petroleum Profit Tax (PPT) was the only predictor that was statistically significant which proves domineering and dependence on oil revenue. Corporate Income tax, Value Added Tax, Customs Excise Duty and Education Tax were insignificant. I attribute this to low tax collection mechanisms, poor workforce coupled with other factors. However, Ogun State and other four states showed real evidence of reasonable reliance on taxation as an alternative source of revenue to finance public projects. To overcome the present fall in revenue generation, we recommended certain actions to be taken to improve the system for a better result. Keywords: Taxation, Free rider problem, the Vicious circle of negligence, Revenue generation, Poor Collection Mechanism, Corruption in Nigeri

The Influence of Corporate Governance on Environmental Disclosure of Listed Non-Financial Firms in Nigeria

The study investigates the influence of corporate governance on environmental disclosure of non-financial firms listed in Nigeria Stock Exchange (NSE), anchoring on “trinity theory” (agency, stakeholder and legitimacy theories). 86 firm-year observations across 86 companies listed in Nigeria Stock Exchange (NSE) using content analysis, cross-sectional data, OLS regression techniques were used to analyze the influence of board characteristics on the extent of overall environmental disclosure (OED). The results show that board independence, board meeting and the environmental committee were statistically significant while audit committee independence and board size were insignificant. Among the three company attributes used to mitigate spurious result only Firm size significantly influence the quantity of overall environmental disclosure of the sample companies. Auditor type “big 4” (Ernest Young, Deloitte, KPMG and PWC) and industry membership show insignificant relation to environmental disclosure. The findings indicate that the level of environmental disclosure of nonfinancial companies in Nigeria is quite insufficient at an average of 10.5 %. It is not surprising that environmentally sensitive industry and auditor type had no significant influence on the extent of environmental disclosure. This buttress the point that the environment the companies operate is institutionally and legally weak. Hence it calls for improvement on environmental law and implementation as well as harmonized environmental reporting infrastructure and standard to aid comparison

Corporate board characteristics and environmental disclosure quantity: Evidence from South Africa (integrated reporting) and Nigeria (traditional reporting)

The study examined the influence of corporate board characteristics on environmental disclosure quantity of listed firms in two leading emerging economies: South Africa and Nigeria which practice integrated reporting framework and traditional reporting framework, respectively. Two issues motivate the study: First, calls by researchers for integrated reporting regulation in Nigeria. Second, the challenge facing regulatory bodies and companies boards in Nigeria in ensuring commitment to the protection of the environment and the society. Many studies have examined the influence of corporate governance on environmental disclosure at the cross-country level, documenting evidence that corporate governance mechanisms are essential for corporate ecological reporting. However, these studies examined settings based on the legal framework and mostly focused on companies quoted on common and civil law countries. They neglected the weak and robust reporting framework and difference within either common or civil law countries. Our study provides evidence on corporate board characteristics influence on environmental disclosure of quoted firms in South Africa and Nigeria. Data obtained from annual reports of 303 environmentally sensitive companies selected from South Africa (213) and Nigeria (90) was investigated using descriptive, multivariate, and regression model. Major findings indicate a significant positive association between board independence and environmental disclosure in Nigeria. In South Africa, 45% of environmentally sensitive industries significantly influence environmental disclosure, while 51% of environmentally polluting industries in Nigeria show insignificant association with environmental disclosure. Our findings are helpful to policymakers and other regulators for an impactful framework on environmental reporting

Effect of international financial reporting standard (IFRS) adoption on earnings value relevance of quoted Nigerian firms

In this study, we examine the effect of IFRS adoption on the earnings value relevance of quoted Nigerian firms. Using a sample of 101 firms (1212 firms-year observation) that are quoted on or before 2006, and have adopted IFRS from 2006 to 2017, we can investigate earnings value relevance. As the principal objective of the inquiry, we introduce a cross-product term, equal to the product of earnings per share (EPS) and IFRS dummy variable, into the basic Ohlson model. The paper uses the Fixed Effect Model as the appropriate estimator for analysis of the data. The estimated coefficient on the cross-product term is statistically significant and positive. The results suggest that the adoption of IFRS in Nigeria leads to higher earnings value relevance. IFRS, as a principle-based, allows managers to use their discretion in the specific treatment of financial items. In doing so, they may bias earnings. Further, the results revealed that estimated coefficient of the cross product of book value and IFRS dummy variable is statistically insignificant and negative. Surprisingly, the simultaneous addition of earnings, the book value of equity, and firm-specific variables in a modified basic Ohlson model show enhanced earning incremental value relevance, while other variables were insignificant, except the interaction of earnings and audit firm size. Overall, results suggest that earnings under IFRS are valued relevance about economic growth conditions, with the nature of such relevance explaining variations on the share price. The findings of this study are utmost important to economic policymakers, investors, and Standard Setters