Business In Nigeria Research Articles

Assessing the effect of Nigeria new tax reform on small and medium enterprises: a financial perspective

Nigeria's new tax reform, which came into effect in 2023, aims to increase revenue generation and promote economic growth. However, the impact of this reform on small businesses in Nigeria is not well understood. This study assesses the financial impact of Nigeria's new tax reform on small businesses, using a mixed-methods approach. The results show that the reform has both positive and negative effects on small businesses, including increased tax burdens, reduced profitability, and improved tax compliance. The study concludes that policymakers should consider the unique needs and challenges of small businesses when designing tax policies.

The financial effects of Nigeria's new tax regime on small and medium businesses: prospects and challenges

The new tax regime introduced in Nigeria in 2023 seeks to boost revenue generation and stimulate economic growth. Despite its objectives, the financial implications for small businesses remain unclear. This study investigates the impact of the new tax policies on small businesses in Nigeria, employing a mixed-methods approach. Findings reveal a combination of positive and negative outcomes, including higher tax burdens, diminished profitability, and enhanced tax compliance.

Optimizing Process Parameters for ASTM A36 Steel Welding with a Locally Manufactured Arc Welding Machine

In many different industries, welding is a common joining technique. However, due to a lack of finance, tiny fabrication businesses in Nigeria frequently use simple manual arc welding equipment. Although these systems enable necessary joining activities, their erratic performance over time degrades output and quality. Welds are unreliable and may need to be redone if the process parameters are not systematically understood. This also restricts the thickness of materials that may be employed. Through experiment design, this study sought to optimize the characteristics of a manually operated shielded metal arc welding (SMAW) machine. Current, voltage, electrode diameter, and travel speed were found to be important adjustable parameters. To examine how changes in these variables affect the results of weld quality, an experimental design was created. The manual SMAW machine's ideal parameters were determined to be 46.498 amps of current, 28.662 volts of voltage, 2.920 mm of electrode diameter, and 100 mm/min of travel speed. The anticipated tensile shear strength at these levels was 502.362 MPa, the micro hardness was 437.736 kgf/mm2, and the weld bead width was 6.124 mm. When compared to the machine's initial capabilities, performance under optimal conditions demonstrated increases in productivity, dependability, and defect reduction. To assist Nigeria's industrialization objectives, local technical skills can be sustainably developed through the methodical improvement of current resources.

THE IMPACT OF ELECTRIC POWER OUTAGE ON THE PROFITABILITY OF SMALL BUSINESSES IN NIGERIA: A CASE STUDY OF GWAGWALADA TOWN

This study examined the impact of electric power outages on the profitability of small businesses in Nigeria, using 50 randomly selected small businesses in Gwagwalada town as a case study. A Logit regression model was adopted, incorporating a mix of qualitative and quantitative variables. The Maximum Likelihood (ML) estimation method was utilized in estimating the Logit model. Findings from the estimated Logit model showed that electric power outages had a negative impact on the profitability of small businesses in Gwagwalada town, while small businesses' expenses on alternative electricity power supplies had a positive impact on profitability. However, both electric power outages and small businesses’ expenses on alternative electricity power supplies in Gwagwalada town had an insignificant impact on the profitability of the small businesses. Based on the findings of the study, it was recommended, among other things, that the government should undertake a national demand study to determine the exact electricity requirements to meet demand in the short, medium, and long terms. Furthermore, an integrated least-cost system expansion plan should be developed for the efficient deployment of the Nigerian electricity industry in the medium and long terms. There is also a need for diversification of electricity generation to improve the security of supply, as well as the development of capacity to generate electricity closer to demand centers to reduce technical losses. Additionally, the government should explore and develop measures to ensure the long-term supply of gas for electricity generation.

Corporate Legitimacy: A Passport to Iron Law of Responsibility Evasion in Contemporary Business Space

The environment of business in Nigeria is overly getting more complex and unpredictable than ever before. This trend is occasioned by the rapid changes in social, technological, political, legal and economic forces which thus, mount both favorable and unfavorable pressures on organizations in their quest to maintain operational stability amid competition. In the light of this circumstance, organizations in their bid to remain operationally efficient often engage in some unethical behaviors which tend to question their legitimate standing and possible invocation of iron law of responsibility by the society. Following this observation, this paper theoretically examined the linkage between corporate legitimacy and iron law of responsibility evasion in modern business space. In pursuit of this, strategic adaptation. strategic manipulation and moral reasoning were adopted as manifest properties of the predictor variable. Consequent upon extant literature exploration, it was found that the society serves as a host to all businesses, and as such has the power to select in and out any business depending on its observed corporate behavior. The paper in line with the findings, concludes that corporate legitimacy is a strategic passport through which an organization’s activities and behavior is given validity and acceptance by the society to prosper. It was however recommended that that for a business to continually escape the wrath of iron law of responsibility and secure legitimacy, managers should embrace moral reasoning option in their quest to establish legitimacy, especially as it allows the organization to peacefully bargain or negotiate with the society on issues of social concern in order bring about a match between business practices and social expectations.

Financial Re-Engineering and Customer Performance of Poultry Business in Nigeria

The poultry business is the largest private sector employer and contributes 25% to Nigeria’s agricultural gross domestic product. The process of capturing poultry business performance using the balanced scorecard performance pillar of customer performance had not been completely integrated in prior research. Therefore, this study looked at how financial re-engineering affected the customer performance of the chicken industry in Nigeria using proxies for business strategy, business processes and systems, business technology, organizational structure, and organizational culture. The study adopted survey research design. The population of the study were 4324 active farmers and support services of the key poultry business stakeholders in the six geo-political zones of Nigeria. The sample size of 450 was determined using Taro Yamane sample size formula. Strata random sampling technique were used to select the respondents from the geo-political zones. A structured and valid questionnaire, using 5 level Likert-scale, were administered to the respondents with a response rate of 84%. The Cronbach’s alpha reliability coefficients for the constructs ranged from 0.87 to 0.95. Descriptive and inferential (multiple regression) analysis were used to analyse the data at 5% level of significance. The findings revealed that all financial re-engineering exerted significance effect on customer performance (Adj.R2 = 0.520 F(5,379) = 82.950, P < 0.05). The study concluded that financial re-engineering has significant effect on customer performance of poultry business in Nigeria and recommended that poultry business owners and management in Nigeria should integrate financial re-engineering into their processes in order to optimize production and attract premium customers with attendant total performance expectations.

Employment Generation of Small-Scale Enterpise and Poverty Alleviation in Rivers State

Job creation opportunities of small-scale businesses in Nigeria for low-skilled workers should be the key to employment creation, which in turn leads to poverty reduction. The seeks to investigate the effects of the employment generation of small-scale enterprises and poverty alleviation in Rivers State. The study used descriptive statistics and the Z-test for the analyses of the data. The finding revealed that the employment generation of small-scale enterprises has a positive and significant effect on poverty alleviation in Nigeria. In addition, it was established that the economic benefits of participants in small-scale enterprises have a positive and significant effect on poverty alleviation in Nigeria. It is concluded that the employment generation of small-scale enterprises considerably enhanced poverty alleviation in Rivers State. The study recommends that policymakers and governments and their agencies provide the technical, technological, financial, managerial assistance, and infrastructure needed for the optimal use of the enormous employment creation opportunities in the small-scale businesses in Rivers State and Nigeria at large.

Environmental disclosure practices dimensions and total value-added growth of the Nigerian listed manufacturing companies

Purpose: This research explored the interaction of environmental disclosure practices dimensions (environmental financial information, environmental non-financial information, and environmental performance information) on total value-added growth of the Nigerian listed manufacturing companies.Design/methodology/approach: Using a secondary data set culled from 39 Nigerian manufacturing businesses traded on the Stock Exchange between 2010-2019, this investigation utilised an ex post facto research strategy. The multiple regression statistical approach was utilised to analyse the data.Findings: The findings indicated that environmental disclosure practices dimensions (environmental, financial information, environmental non-financial information, and environmental performance information) significantly and positively affect the total value-added growth of Nigerian listed manufacturing companies.Research limitation/implication: This study focused on Nigerian-listed manufacturing companies. Future studies could include non-listed manufacturing companies. Also, other industries could be considered in future studies.Originality/value: As far as the authors are aware, this is the first research to establish a connection between the environmental disclosure procedures of traded manufacturing businesses in Nigeria and the overall value-added increase. In addition, the findings showed the interaction between environmental disclosure practices factors on total value-added growth in listed manufacturing businesses in Nigeria are novel and significant.

Cocoa Transfer Agreements, moneylenders, public letter writers and the rise of business elites in South West Nigeria, 1986–2000

Abstract This paper focuses on the subject of the cocoa transfer agreements and the transformation of rural agrarian livelihoods in the cocoa belt of South West Nigeria under the Structural Adjustment Programme (SAP). The paper maps the trajectory and career of three dominant agricultural entrepreneurs in the cocoa produce trade in South West Nigeria during the 20th century. The paper demonstrates that while the cocoa business in Nigeria has received considerable scholarly attention, the impact of moneylenders, public letter writers (PLWs) and cocoa transfer agreements on cocoa business, rural livelihoods and entrepreneurship in the aftermath of SAP is yet to be fully investigated. Analysing the accumulative strategies and contributions of Emmanuel Akintan, Isaac Adegbuyi Akingboye and Rufus Orosundafosi to rural capital formation, the paper highlights the impacts of liberalisation policies on African rural businesses in the aftermath of SAP. The paper combines primary sources, such as oral interviews, personal observation and ethnography, with information collected from the archives, newspapers, diaries, and extant literature to analyse the dynamics of rural accumulation in the cocoa producing South West Nigeria during the 20th century. The paper argues that the acquisition of wealth and the thin line between standard procedures and clandestine deals stimulated accusations of dispossession of peasant farmers by the capitalist moneylenders and merchants in the post-SAP era.

Corporate Environmental Reporting: Do Firms Operating in Environmentally Sensitive Sectors Disclose Enough?

Corporate environmental disclosure has been increasing steadily as it is an essential factor for sustainable development. However, this factor seems to be insufficientl recognised within the Nigerian corporate world. The objective of this study is to assess the level of corporate sustainability disclosures in environmentally sensitive industries in Nigeria. This study is based on secondary data obtained from annual reports of firms listed on the Nigerian Exchange Group (NGX). Data used were collected from 45 sampled companies listed under 6 environmentally sensitive sectors for the 2021 financial year. Content analysis was applied to measure the level of environmental disclosures. The Environmental Disclosure Index (EDI) was prepared based on the Global Reporting Initiative (GRI) Standards. This research used independent sample t-test, analysis of variance, and the Kruskal-Wallis test as techniques of analysis. There were statistically significant differences in firms’ disclosure levels based on environmental certifications. The agriculture industry made the highest environmental disclosure, whereas the companies in the natural resources industry disclosed the least. It was found that companies revealed maximum information on their energy and environmental compliance initiatives, while there was inadequate information in other areas of environmental disclosure, such as supplier environmental assessment, effluents and wastes, and materials. The study provides implications for the strict adoption of a systematic reporting framework, especially for environmentally sensitive firms, while offering insights to guide policymakers, regulatory bodies, industry associations, and businesses in Nigeria to promote transparency and responsible environmental reporting.

Sustainable supply chain management: The right way of doing business in Nigeria

Background: Improved organizational performances and increased competitiveness have been linked to sustainable supply chain management as a strategic tool. In Nigeria, most manufacturing companies seems to be unaware of the importance of this tool in their supply chain processes. Some of their manufacturing outputs are threats to life's existence. Proper adoption of all sustainable practices will not only reduce the cost of production but will also increase business profitability. Purpose: The main objective of this study is to investigate guidelines or practices manufacturing companies in Nigeria must adopt to achieve sustainability in their supply chain management. In addition, to explore the relationship between the outcomes of sustainable supply chain management practices and business profitability among manufacturing firms in Nigeria. Methodology: The research design is a descriptive type. Data was collected using a structured questionnaire that was designed to address each of the research questions. Findings: The findings are presented in tables. It was shown that the general awareness of sustainable practices is a bit above average and the adoption of the practices was seen in varying degrees. Reverse logistics (37%), sustainable warehousing (75%), environmental purchasing (26%) sustainable transportation (4%). Discussions: Adoption of these sustainable practices has been seen to increase sales, improve the corporate image of the firm, and improve information sharing among all stakeholders. However, this adoption is still poor, which means that the manufacturing sector has yet to harness the concept of sustainability as an option for doing business right in the country.

Corporate environmental reporting components and return on capital employed growth of the Nigerian listed manufacturing companies: An empirical analysis

This study explored the impact of corporate environmental reporting components on the growth of the return on capital employed in Nigerian listed manufacturing firms. The study adopted an ex post facto research design. 39 manufacturing businesses listed on the Nigeria Stock Exchange provided secondary data over the research period (2010-2109). The multiple regression statistical approach was used to analyse the data. This study made use of a quantitative research strategy. While environmental non-financial information did not show any significant influence on the return on capital employed growth of identified manufacturing organisations in Nigeria, results showed that environmental financial and performance information had a significant and beneficial impact. However, the data demonstrated that the integration of all aspects of corporate environmental reporting positively and statistically significantly influenced ROCE growth in Nigeria’s listed manufacturing businesses. A future study could expand the population of the study to include non-manufacturing companies in other industries. The implication of these results is that the manufacturing companies in Nigeria need to pay more attention to environmental, financial, and environmental performance information to enhance their return on capital employed growth. The writers were unable to locate any prior research that demonstrated this connection. Additionally, corporate environmental reporting components impact the growth of return on capital employed in listed manufacturing businesses in Nigeria, and this research provides new and significant findings in this area.

Financing Small Scale Business in Nigeria; Challenges and Potentials of Animal Products Processing

In Nigeria, Agriculture is the largest sector for decades that has employed nearly 60% of its workforce and its growth rate is still below the potentials of the country’s natural and human resources due to high cost of agricultural inputs, poor funding , inadequate functional and infrastructural facilities, inconsistencies in government agricultural policies, inadequate private sector participation, poor mechanized farming and little or no adoption of simple agricultural technologies developed by scientists. Small scale business has played a vital role in reducing unemployment and adding to the country’s gross domestic product (GDP) but is still faced with a lot of problems such as poor electricity, high cost of agricultural processing machinesand most recently poor funding. A lot of reviews have been written on small scale enterprises, however, financing small scale businesses in Nigeria, challenges and potential of Animal products processing sector has not been complied. Therefore this review is focused on the challenges facing the development of small scale businesses, the role and contribution of government in facilitating the growth of small business enterprise as well as the potentials of the animal product and processing sector.

COLLECTIVE INVESTMENT SCHEME AS A TOOL FOR ECONOMIC INCLUSION AND DEVELOPMENT IN NIGERIA

There are two major challenges to doing business in Nigeria: lack of capital and managerial expertise. With the large population of Nigeria, and by implication, the size of her market, Collective Investment Scheme (CIS), as regulated under the Investment and Securities Act (ISA) 2007, provides the necessary platform to overcome the two challenges above. Where the two challenges are overcome, the CIS can be a tool for economic inclusion and development in Nigeria. This study, therefore, examines the Collective Investment Scheme (CIS) in Nigeria, a business package aimed at economic inclusion and development. CIS, regulated by the Securities and Exchange Commission, offers three types of schemes with potential benefits for investors and addressing housing deficits. The CIS is a vital tool for economic inclusion and development of Nigeria. Its domicile in the Nigerian Capital Market (NCM) is to ensure its success as the funds are only invested in securities of choice for profits. The regulatory expertise and wide powers of the Securities and Exchange Commission (SEC) in the regulation of CIS are for the success and sustenance of the scheme via systemic scrutiny of the CIS managers and their operations. However, a comparison with Mauritius reveals some shortcomings. The doctrinal research method is adopted in this study. This doctrinal research adopts a comparative analysis to identify areas for improvement. The study finds that while CIS has advantages, it also has demerits. Recommendations are proffered to enhance the Nigerian CIS scheme, including addressing regulatory gaps and improving investor benefits.

Assessment of Subsidies for Construction Businesses in Nigeria: Evolution from an Oil-Based Economy to an Infrastructural-Based Economy

Subsidies are financial or non-financial aids or support given to an economic sector, individual or organization by their government to promote the economy and achieve specific policy objectives. This study assessed the use of subsidies for construction businesses in Nigeria with a view to revolutionize the country from oil-based economy to infrastructural-based economy. A structured questionnaire was administered to four hundred and four (404) construction business stakeholders, and three hundred and four (304) representing 75.25% were retrieved from the respondents. Findings revealed that buying and selling of construction materials with Mean Score (MS) of 3.97 is the most successful construction businesses in Nigeria. The major factors considered in rating construction business performance are profitability to the investor (MS=3.70), resource management and control (MS=3.68), and cost performance (MS=3.63). The study concluded that the establishment of construction related institutions (MS=3.97), enforcement of health, safety, and hazards prevention policies (MS=3.91), exchange rate moderation for construction business (MS=3.86), and implementation of the National Building Code (NBC) (MS=3.85) will grow the infrastructural economy. The study recommended subsidies for construction businesses in Nigeria to boost the infrastructural sectors and the economy.

Effects of Fuel Subsidy Removal on Small-Scale Industries in Nigeria

This research explores the effects of fuel subsidy removal on small-scale businesses in Nigeria, a critical sector in the nation’s economic landscape. The study contributes to existing knowledge by focusing on the relationship between subsidy removal and its impact on small-scale industries. A comprehensive literature review considers climate change impacts, socio-economic and environmental externalities, and the historical context of fuel subsidies. While previous studies have investigated macro and micro consequences, this research examines the repercussions on small-scale businesses. Utilising a descriptive research design and a Likert-structured questionnaire, the study investigates the ramifications of recent fuel subsidy removal in a typical community in the country. Key factors, including changes in sales, operational costs, and profit margins, are analysed using descriptive statistical methods and the Chi-square test. The findings highlight the interconnectedness between government policies and the health of small-scale businesses, emphasising the need for evidence-based decision-making to support resilience in adapting to policy changes.

Enhancing Corporate Performance through Debt Financing: Evidence from Nigerian Consumer Goods Firms

Background: Consumer goods firms play a significant role in any economy, like other businesses, require a mix of financing methods to amplify their performance. Aim: The study examined enhancement of corporate performance of Nigerian Consumer Goods Firms through debt financing for a period of eleven (11) years from 2011 to 2022. Methods: The data obtained were estimated using descriptive statistics and panel regression model of fixed effect. Results: The study found a positive and significant impacts of long-term debt (β=0.469729, P=0.0311) and firms’ size (β=0.154547, P=0.0251) on the performance of Nigerian consumer goods firms’ but negative and significant impacts of loan quality (β=−0.037431, P=0.0241) and short-term debt (−0.023417, P=0.0124) on their performance. Recommendation: The study recommends financing through Long-term debt for businesses in Nigeria.

THE PSYCHOLOGY AND SOCIOLOGY OF A FRAUDSTER: IMPLICATIONS FOR TODAY ACCOUNTING PROFESSION

The study examines the Psychology and sociology of a fraudster: Implications for today accounting profession. The investigation was guided by three questions and a hypothesis. The study employed a survey research approach, and the 274 auditing businesses in Nigeria's South-South geopolitical zone comprised the study's population., the Taro Yamane was uses to determine the sample of the study and Spearman rank correlation was used to analyse the data. Results from the research reveal that there was a correlation in capability (r= 0.121 p< 0.05), lifestyle (r= 0.561 p< 0.05 and environment (r= 0.108 p< 0.05) and the psycho-social behaviour of the perpetrator of fraud. The implication was that the professional auditors should apply professional scepticism and exercising due care in engaging their work for better delivery and discharge of their duties, as this will lead to the detection of fraud and the reporting of red flags that are of material misstatement. The study recommended that an active, strong and proper supervision of internal control system will put to serious check the action of fraudulent activities.

Consumers’ level of patronage of halal business in Nigeria: Do religiosity and advertising matter?

PurposeThe purpose of this paper is to measure the effects of religiosity and advertising on consumers’ patronage of halal industry in Nigeria.Design/methodology/approachData for the study was collected using questionnaire survey. The collected data was analyzed using Tobit and ordered Logit models.FindingsThe findings of the work show that while the coefficient of religiosity is positive, but it is statistically insignificant, while advertising has a moderate negative effect on consumers’ patronage of halal business in Nigeria.Practical implicationsThe study has implication on the use of advertising by halal business. It shows the limit of using advertisement to build brand; advertising shall be used together with other measures such as corporate social responsibility and other charitable undertakings.Originality/valueTo the best of the author’s knowledge, this work is the first of its kind that empirically tests the effect of advertising on patronage of halal business.

Interrogating the Growth and Survival of Nigerian SMEs in the Digital Technology Era through Personal Entrepreneurial Characteristics of Printing Firms in Somolu, Lagos State, Nigeria

In this paper, the personal entrepreneurial characteristics (PECs) of printing entrepreneurs is used to cross-examine the growth and survival of Nigerian SMEs amidst the challenges posed by technological changes in the digital era. It equally assesses the influence of attributes, skills, competences and traits possessed by the entrepreneurs in sustaining businesses in difficult times. A set of questionnaire was administered on 270 entrepreneurs drawn randomly from Somolu, a well-known printing hub situated in Lagos, Nigeria. Descriptive analysis of the demographic variables revealed the sector as fairly technologically-inclined (51.8%) and non-gender discriminatory (59.3% male and 40.7% female). The study further revealed that innovativeness with a mean score of 3.67, ranked 9th out of the 12 PEC variables used in the study, while commitment and determination, and ability to adapt, both with mean scores of 4.85 ranked first among the PECs. In addition, regression analysis (R = 0.804, R2 = 0.646, F = 5.482, p value = 0.01) revealed that PECs support the growth and survival of small and medium scale printing business in Nigeria, with a substantial 64.6% predictive effect. It is therefore suggested that SMEs should adequately harness these potentials to accommodate the transformational efforts suggested to government and universities in the era.