Accounting for modern slavery risk transparency in Nigerian businesses: Institutional context, disclosure and the way forward

Abstract

This paper examines the state of engagement of Nigerian companies with modern slavery risk and how current accounting and reporting might be better enabled to contribute towards ending modern slavery practices. Crane's (2013) theoretical framework is used to guide understanding of the contexts behind modern slavery risk disclosure in Nigeria, including industry, socioeconomic, regulatory, cultural and geographic factors. Cross-sectional content and thematic analysis are undertaken, as published in the annual reports, sustainability reports and websites of top companies listed on the Nigerian Stock Exchange. In line with Crane (2013), supply chain codes of conduct and collaboration are identified as a possible first-stage intervention moderator between industry context and ending modern slavery in Nigeria. However, a second moderator, affordable micro-credit, is notably absent from disclosures, and a third moderator, private or civil regulators, as a substitute for government, is considered ineffective. Management capability mediators as circuit breakers, reducing accounting opacity, require further research. This is the first paper to present evidence about modern slavery supply chain risk disclosures in Nigeria and to develop possible contextual, moderating and mediating variables aimed at policies and actions to end modern slavery practices in Nigeria.