Accountability in Nigeria’s Public Sector: The Role of International Financial Reporting Standards (IFRS)

Nothing is more central to good governance than accountability. It is therefore not surprising that the underperformance of the Nigeria public sector is being substantially attributed to lack of fiscal accountability. But accountability is impossible without good accounting and reporting actuated by good standard. As the nation moved toward the adoption of International Financial Reporting Standard (IFRS), will the adoption enhance public sector performance with respect to accountability? This is the focus of this study. An explorative methodology was adopted to assess the findings of researchers with respect to the expected role of IFRS. A convergence of all the revelations was that although IFRS focuses more on Private sector accounting, the increased disclosure, transparency and comparability it engenders will permeate the public sector bringing about greater accountability. Therefore, the government should not only support its adoption but should also expedite action for the internationalization of public sector financial reporting through the adoption of International Public Sector Accounting Standard (IPSAS)

Corporate Social Responsibility Disclosures in Nigeria: A Study of Listed Financial and Non-Financial Firms

This study is an empirical investigation of the relationship between firms’ corporate financial performance and the level of corporate social responsibility disclosures among selected firms in Nigeria. It also looked at the relationship between firms’ financial leverage and the level of corporate social responsibility disclosures among selected firms. While the annual reports for the period 2008 was utilized as the main source of data collection for the sampled 41 listed firms, the multiple regression analysis was employed as a statistical technique for analysing the data collected. The paper revealed that firms’ corporate financial performance and the size of audit firm have a significant positive relationship with the level of corporate social responsibility disclosures among selected firms. Also, the paper as part of its findings- observed that a significant negative relationship existed between firms’ financial leverage and the level of corporate social responsibility disclosures. The paper therefore recommends that government, as part of their responsibility, should put in place policies that will create a good business environment for firms operating in the countr

PUBLIC BUDGETING AND POVERTY REDUCTION IN NIGERIA

Public budgeting is reckoned as the most rational, logical, legal, and acceptable basis for the mobilisation and allocation of resources to government strategic areas of national priorities, of which poverty reduction is principal. However, the increasing trend of the population in poverty in Nigeria negates this expectation, contradicts conventional wisdom and suggests the existence of infractions in the budget process and management. Hence, this study was envisioned and preoccupied with the objective of establishing the relationships between the attributes of sound budgeting namely: allocative efficiency, operational efficiency, budget discipline and budget reforms and poverty reduction in Nigeria. To achieve these objectives, explanatory research design was adopted employing both primary and secondary data. The primary data were obtained from the administration of 400 copies of questionnaire to two sampled groups, namely, government agencies and non-governmental organisations. Secondary data were obtained from official government publications sourced from Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS). The data were analysed using Partial correlation (PC), Ordinary Least Square (OLS) Regression, Paired sample T-test as well as Mann-Whitney U Test. In addition, the long-term relationship of the predictor and the outcome variables were gauged using the Johansen cointegration technique. The outcome of the analyses reveals that budgetary allocation is negatively and significantly associated with poverty index (Long-run coefficient of LPBAKS -1.499277, T-statistic -3.51487) while budget discipline does not have a strong influence on poverty incidence in Nigeria (long-run coefficient LBDISC - 0.123401, T-statistic -1.71511). Also, the relationship between the incidence of poverty and operational efficiency of the budgetary process was found to be significant (Long-run coefficient of LEDEXP and LTDSERV 0.158931, T-statistic 5.98782 and -0.211144. T-statistic -10.3891 respectively). It was also found that budget-related reforms namely MTEF (POI/MTEF, t = 1.680, sig = 0.168) and FRA (POI/FRA, t = -3.830 sig = 0.62) had not had any significant impact on poverty reduction in Nigeria. The research also found the existence of peculiar budgeting problems in Nigeria, including budget indiscipline/corruption (rank value 4.63/5), fiscal impropriety (rank value 4.35/5), allocative inefficiency (rank value 3.51/5) and poor budget governance (rank value 2.97/5) among others. The study recommended that government should, as a deliberate policy, increase allocation to the economic and social sectors, such as: education, agriculture, health, transport and communication, in view of their direct impact on the poor. The enforcement of budget discipline in all its three dimensions was also recommended to ensure that allocations are not misdirected. It was recommended that budgetary institutions be strengthened through participative budgeting and adherence to the provisions of the Fiscal Responsibility Act (FRA) and enforcing other budget-related reforms to enhance their impact on the budget management and poverty reduction. These and other recommendations made in this study have the potential to transform the federal budget from just an annual ritual to a concrete instrument for economic transformation, as well as a practical tool in the hand of government for winning the war against poverty in Nigeria

Accounting information and share prices in the food and beverage, and conglomerate sub-sectors of the Nigerian stock exchange

The main objective of the study is to examine whether accounting information is value relevant in both the food and beverage, and the conglomerate subsectors of the Nigerian Stock Exchange (NSE). The study also compared the value relevance of accounting information for both sectors. A random sample of seven companies was selected from a total population of thirteen companies listed in the Food and Beverage subsector of the NSE. The study also took a random sample of another seven companies in the conglomerate subsector. Data were gathered from these companies for the period 2005 to 2014. Using the Ohlson (1995) model and the multiple regression method, we found that market price per share (MPS) is positively, but insignificantly related to book value per share (BVPS) and earnings per share (EPS) in the conglomerate sub sector. On the other hand, for food and beverage sub sector, MPS is positively and significantly related to BVPS and EPS. Accounting information is more value relevant in the food and beverage subsector than the conglomerate subsector as shown by the adjusted R2 of 0.89 for Food and Beverage subsector and 0.15 for the conglomerate sub sector. We recommended that accounting rules should be more sector-specific, and monitoring should be taken more seriously in the conglomerate subsector to enhance value relevance of accounting information in NSE.peer-reviewe

Accounting Information and Share Prices in the Food and Beverage, and Conglomerate sub-sectors of the Nigerian Stock Exchange

The main objective of the study is to examine whether accounting information is value relevant in both the food and beverage, and the conglomerate subseEtors of the Nigerian Stock Exchange (NSE). The study also compared the value relevance of accounting information for both sectors. A random sample of seven companies was selected from a total population of thirteen companies listed in the Food and Beverage subsector of the NSE. The study also took a random sample of another seven companies in the conglomerate subsector. Data were gathered from these companies for the period 2005 to 2014. Using the Ohlson (1995) model and the multiple regression method, we found that market price per share (MPS) is positively, but insignificantly related to book value per share (BVPS) and earnings per share (EPS) in the conglomerate sub sector. On the other hand, for food and beverage sub sector, MPS is positively and significantly related to BVPS and EPS. Accounting information is more value relevant in the food and beverage subsector than the conglomerate subsector as shown by the adjusted R2 of 0.89 for Food and Beverage subsector and 0.15 for the conglomerate sub sector. We recommended that accounting rules should be more sector-specific, and monitoring should be taken more seriously in the conglomerate subsector to enhance value relevance of accounting information in NS

BUDGETARY ALLOCATION AND POVERTY INCIDENCE IN NIGERIA FROM 1980-2010

The paucity of public resources amid competing infinite national needs is the fundamental rationale for effective budgetary a/location in the public sector. A((ocation is said to be effective when the resources of the government are channelled to national priority areas such as poverty reduction. This paper therefore set out to establish the short-term association between budgetary allocation and poverty incidence in Nigeria. Four sectors of the economy namely: agriculture, education, health, and transport and communication were selected purposively for investigation. Data relating to national poverty index and budgetary allocation to these sectors were obtained from official government publications for 31 years (1980-2010), and analysed using descriptive statistics, partial correlation and the Ordinary Least Square (OLS) regression techniques. The result revealed an insignificant negative association between budgetary allocation and the incidence of poverty in Nigeria in the short term. Although, the magnitude of the association is inconsequential at 95% confidence interval, the direction of the relationship is in tandem with the underlying theory. To this end, it was recommended that allocation to sectors of the economy with direct impact on the poor such as: agriculture, education, health and transport and communication should be increased. However, actual release of funds should be done promptly to allow for uninterrupted execution of projects, albeit, under watch in order to avoid misdirection of fund

Good Budgeting and Good Governance: A Comparative Discourse

The observed budgetary abuses including lack of transparency, poor accountability and budget indiscipline have called to question the rationale of budgeting in government and whether there is any significant positive relationship between good governance and public budgeting. The objective of this paper is to attempt to clear this doubt by an exploration of literature in the subject and specifically comparing the nature and features of good budgeting with good governance. From the conceptual and theoretical basis, it is clear that budget management is not just a technocratic phenomenon but also a political process. Thus, the quality of a government can be x-rayed from the quality of its budgetary process. It is therefore recommended that strict adherence to budgetary rules should not be compromised especially as it relates to discipline, transparency and accountability in the budgetary process as this will enhance good governance and deliver value to a large majority of Nigerians. However, this research discovered the crisis of development in Nigeria to be the absence of these socio eco-political virtues. Thus, a recommendation is made for the need to embrace these virtues in order to see our country come out of the doldrums of underdevelopment

Budget Discipline In Nigeria: A Critical Evaluation of Military and Civilian Regimes

The Nigeria budgetary practices has been characterised with indiscipline and flagrant disregards to budgetary rules and procedures. This culture has been substantially attributed to the long years of military rule. This paper juxtaposes military and civilian regimes in Nigeria with respect to adherence to budgetary estimates.  Eight years for each regime were purposively considered (1991 –1998 and 1999-2006). Time series data were retrieved from secondary sources and analyzed using simple variances, percentages, descriptive statistics as well as independent T-Test. The paper found that although budget discipline under democratic regime is arithmetically higher that budget discipline under military system, the difference is not statistically significant. It was therefore recommended that since budget is a law (appropriation Act); it should be accorded the same respect like any other act of the National Assembly as a justification for the democratic tenet of the rule of law. To that end budget implementation and control should be judiciously enforced with a view to achieving the lofty objectives that accompanies each year’s budget, as well as reduce the negative pressure that budget indiscipline engenders