Tax Revenue Generation and Nigerian Economic Development

The objective of this paper is to explore the impact of income tax revenue on the economic growth of Nigeria as proxied by the gross domestic product (GDP).  The ordinary least square (OLS) regression analysis was adopted to explore the relationship between the GDP (the dependent variable) and a set of federal government income tax revenue heads over the period 1981-2007.  A simple hypothesis was formulated in the null form which states that there is no significant relationship between federally collected tax revenue and the GDP in Nigeria.  The regression result indicated a very positive and significant relationship.  However actual tax revenue generated in most years fell below the level expected.  The anomaly was attributed to dysfunctionalities in the income tax system, loopholes in tax laws and inefficient tax administration.  Suggestions were made as to strategies to be adopted to improve the system of tax administration to increase tax revenue generation. Key Words: Income Taxes, GDP, Tax evasion and avoidance, Loopholes in tax laws and administration, Revenue generation

The Role of Human, Financial and Social Capital in the Performance of Small Businesses in Nigeria: A Second Look

The methodology adopted in this paper involved using a five likert scale measure to assign values to the impactof human, financial and social capital variables on a sample of 20 firms (12 manufacturing and 8 servicing), andthen applying the Kruskal-Wallis analysis test to determine whether there is significant difference in the level ofthe impact of the three independent variables on the dependent variable (firm performance). Results indicatethat two human capital variables, namely education and work experience, have a higher impact factor on bothtypes of firms relative to the impact of family background, and owners’ direct involvement. Measures offinancial capital especially willingness to borrow has greater impact on manufacturing firms than on servicingfirms. While measures of social capital especially it’s relational component has impact on both types of firms.The result of the Kruskal-Wallis analysis test suggests that the performance of small firms in Nigeria isessentially driven by all three factors (human, financial and social capital).Keywords: Human Capital, Financial Capital, Social Capital, Performance, Small Businesse

Financial Management Practices of Small Firms in Nigeria: Emerging Tasks for the Accountant

The exploratory research design was adopted to determine whether the financial management practices of small firms in Nigeria impacted on their profitability, growth and survival.  Five independent variables (accounting systems, financial management information, working capital management, budgeting practices and managerial planning) were used in the evaluation which was restricted to six small firms.  Results indicate that two financial information variables (accounting system and financial management information) alone dominate the risk perception of fund providers.  As a result, small firms find it difficult to source adequate funds for business operations.  The study also reveals that the five independent variables have significant impact on the survival, growth and profitability of small firms.  SME firms are therefore advised to employ the services of qualified accountants in order to upgrade their financial management practices to enhance their overall performance. Key words: Financial management, Small firms, Accountant, Performance and Nigeria economic development

Intangible Relational Capital and the Success of Entrepreneurship Firms in Nigeria: A Second Look

This study used data collected from 20 SMEs operating in Anambra and Enugu states of Nigeria to evaluate theimpact of relational capital on the success of firms. The multiple regression analysis was the main statisticaltool used to test the relationship between a dependent variable (success) and a set of five independent variables(relations with customers and suppliers, informal relations, reputation, location and ties with external bodiesincluding government). The results indicate that only the variables concerned with relationship with customersand suppliers and those relating to ties with external bodies made significant contributions to the success of firms(t=7.549, p<.01); and (t=5.107, p<.01) respectively. Result also shows that R2 =.534 indicating that the set ofindependent variables accounts for slightly more than half of the explanation of the success of firms in thesample. The paper recommends that more future research efforts should be invested to develop other reliablemeasures and measurements of relational capital given its significant impact evident in this study.Key Words: Relational Capital, Intellectual Capital, Value added, Competitive advantage, Firm succes

Complementarities of Economic Value Indicators and Organizational Learning Parameters in the Assessment of Export Success of Small-Scale Enterprises in Nigeria

development of government.  In assessing export success, many researchers focus on the economics of export trade i.e the financial gains from the process.  Often neglected are the organizational learning experiences which contribute substantially to financial success in the export venture.  This study of ten small-scale enterprises exporting primary products reveals that economic factors are not the only criteria to consider.  Our results indicate that learning experience has 92% correlation with export financial success, while economic value has 87%.  By implication, firms which have organizational learning orientation as a major focus and have desire to learn from international trade are likely to succeed more in export endeavours than those that value only economic gains.  Therefore, learning experiences should be applied in conjunction with economic values in evaluating export success.  The requisite knowledge and skill could either be acquired by hiring managers with such knowledge and skills in international markets or developed through training on the trade experience. Key Words: Evaluating, Export success, Economic Value, Organizational Learning, Small firms.

Accounting Education in Nigerian Universities: Challenges and Prospects

The primary challenge of a university is to develop quality human capital for every sector of the nationaleconomy. One area of dire need is the production of graduate accountants who are adequately prepared to meetthe accounting challenges of modern businesses as well as the socio-political and economic needs of government.To meet the challenge of producing well educated graduate accountants, three complementing competenciesought to be inculcated in the students namely education, skills and attitudes. These developmental traits musttherefore be incorporated in the accounting programme/curricula. Unfortunately most universities in Nigeria arechallenged by inadequacies in terms of curricula content, staffing, teaching aids and pedagogy, teaching facilitiesand particularly gross inadequacy of funding. This paper evaluates the nature, dimensions and consequences ofthese challenges and recommends strategies that could guide the government, university administrators, teachersand other stakeholders in finding lasting solutions to the problems

Review of Financial Challenges of Nigerian Entrepreneurs in an Attempt to Reduce Financial Institutions Risk Perception Index of Small Firms: Evidence from Survey Data

The success of an entrepreneur`s search for credit facility depends highly on his ability to reduce risk perception of fund providers of small firms.  Three variables (financial management information skills, the prior banking relationships and the level and quality of collateral constitute risk reducing factors, which an owner-manager must package properly in a feasibility study to put his case for loan applications better.  Also, access to credit facility is significantly affected by historic profit performance. Inability of the owner manager to face these challenges would force him to face up-hill tasks in accessing external financing.  The paper recommends that small businesses should first; increase their level of knowledge in accounting/financial management skills, be assisted by way of public policy guarantees so as to reduce the stringency of conditionalities imposed on them for such facilities. Key words: Financial challenges, Financial needs, entrepreneur, Risk perception, Investors actio

Issues and Challenges in Enhancing Efficient Entrepreneurial Accounting Education in Nigerian Universities

Entrepreneurial accounting education programme (EAEP) is one of the entrepreneurial education programmes (EEPs) that create an environment which affects students learning experiences that instill in them the desire/mindset to create ventures, and expands the platform which the entrepreneurial business community can access accounting and financial management skills needs.  This type of education is very important for economic development of a nation because it is a platform towards reducing unemployment among university graduates.  Entrepreneurial education has not received the deserved attention in Nigeria universities.  This paper examines entrepreneurial accounting education and assesses challenges facing the universities for effective entrepreneurial education, and proposes strategies; amongst the most important is the establishment of university business incubator programme (UBIP). Keywords: Nigerian Universities, Entrepreneurial Accounting Education, Venture Creation, Accounting skills, Business success

Review of Valuation Models for Private Enterprises in Nigeria

The objective of this paper is to ascertain which of the two models (i) a model based on earnings variables alone and (ii) a model based on both net asset and earnings variables proves to be better than the other in valuing private enterprises in Nigeria using three sample firms.  It is true assets are very important in a firm but it is not easy to adjust the value of the assets in the balance sheet to get the net asset because of the obvious differences between the historical cost of the assets and their current market value.   To incorporate asset variables in model (ii), equity value was ascertained by subtracting long-term debt (balance sheet item) from firm value.  Model (ii) therefore which recognizes the contributions of assets in earning potentials of a firm appears to be better than the model that recognizes earnings alone. The theoretical formulations, and empirical support of the valuation approaches are evidence of the model`s reliability and validity. Key words: Identify, valuation models, Private enterprises, earnings, earnings/asse

Impact of Recurrent and Capital Expenditure on Nigeria’s Economic Growth

The need to better the lots of citizens through government expenditure has raised questions on the impact of government expenditure on its impact on economic development and growth of nations. It is against this background that this paper examines the impact of government expenditure (disaggregated into recurrent and capital expenditure) on economic growth from 1987 to 2010. Three variable multiple regression model was adopted while recurrent expenditure and capital expenditure were used as independent variable and gross domestic product growth rate as dependent variable. The result emanating from this study reveals that while recurrent government expenditure had positive and non-significant impact on economic growth, capital expenditure had negative and non-significant impact on economic growth thus re-echoing the need for increase and encouragement of private sector investment while have proven over the years as a more efficient utilization of resources compared to public sector. Keywords: Recurrent Expenditure, Capital Expenditure, Economic Growth, Nigeri