FUDMA Journal of Accounting and Finance Research [FUJAFR]
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Relevance of Takaful in Achieving Sustainable Development Goal 3 in Muslim Majority and Developing Countries
Full text linkThe importance of inclusive financial mechanisms in accomplishing health-related goals has been brought to light by the growing emphasis on sustainable development, especially in relation to Sustainable Development Goal 3 (SDG 3), "Good Health and Well-being." This study examines how Takaful, an insurance concept that complies with Shariah, might help accomplish SDG 3. The study synthesises the body of academic and policy-based research on Takaful and its benefits for community resilience, financial risk protection, and healthcare accessibility in Muslim-majority and developing nations using a literature review methodology. According to the review, by providing moral risk-sharing models, lowering out-of-pocket medical costs, and encouraging social cohesion during medical emergencies, Takaful can remove structural obstacles in health finance. Furthermore, incorporating Takaful into national health insurance programs holds promise for advancing universal health coverage, a key SDG 3 goal. However, as barriers to its wider influence, the study also points to deficiencies in public awareness, product diversification, and regulatory frameworks. The study comes to the conclusion that, even while Takaful by itself is not a cure-all, it is a highly relevant supplementary mechanism in sustainable health systems, especially when traditional insurance models encounter sociocultural opposition
Operational Planning and Organizational Performance of the Federal Ministry of Education, Abuja, Nigeria
Full text linkThere is wrong application of operational planning, by the workers of the Federal Ministry of Education (FME), Abuja. In an attempt to address this unfortunate development, there is the need to critically investigate the importance of planning on organizational performance to enable management to appreciate its worth in gaining competitive advantage. This study examines the influence of operational planning on organizational performance in Nigeria Federal Ministry of Education. The research design employed in the study was the descriptive approach, where issues will be effectively analyzed through research questions, test hypotheses and establishment of relationships between the variables of interest. Scores generated from the research instrument with Statistical Package for Social Science (SPSS) version 27 and were analyzed using the weighted mean score and simple linear regression statistical technique. The study results indicated that operational planning had a positive and significant influence on the organizational performance of the federal ministry of education in Nigeria. It was also discovered that there exists a strong positive and significant relationship between operational planning and organizational performance at the federal Ministry of education, Abuja, which implies that an improvement in operational planning will lead to increase in organizational performance. The study suggests that investing in robust planning infrastructures, fostering a culture of continuous improvement, and leveraging technological advancements to streamline planning and execution processes will improve work performance in FME
Solvency Management and Firm Growth of Listed Non-Financial Firms in Nigeria
Full text linkThis study investigates the effect of solvency management on the growth of listed non-financial firms in Nigeria. Adopting an ex-post facto research design, the study utilized panel data from 73 non-financial firms listed on the Nigerian Exchange Group between 2020 and 2024. Short-term solvency management (liquidity) was measured using the current ratio, while long-term solvency management was proxied by the total liabilities-to-assets ratio. Firm growth, the dependent variable, was assessed using changes in profit after tax (PAT), with firm size included as a control variable. Panel least squares regression was employed for data analysis. The results revealed that both short-term solvency management (liquidity) and long-term solvency management have positive but statistically insignificant effects on firm growth. The study concludes that while financial soundness contributes to firm stability, it does not significantly drive growth. It is recommended that firms integrate short-term solvency management (liquidity) and long-term solvency management with broader strategic investment decisions to achieve sustainable growth
Forensic accounting litigation support and detection of public sector corruption in Nigeria
Full text linkPurpose: The rise in financial fraud cases in Nigeria\u27s public sector, attributed to the ineffectiveness of statutory audits in detecting and preventing such activities, has led to an increased demand for forensic accountants. This study investigates the effect of forensic accounting in the detection of public sector corruption in Nigeria with a focus on three antigraft agencies.
Methodology: The study adopted a descriptive survey research design and collected data using a structured questionnaire. Using Taro Yamane\u27s formula and a purposive sampling technique, four hundred and five (405) respondents of relevant staff of the antigraft agencies were selected for the study. The method of data analysis used was descriptive statistics and multiple linear regressions based on 386 questionnaires returned by the respondents.
Results and conclusion: Findings of the study revealed that forensic accounting litigation support had a significant positive relationship with public sector corruption in Nigeria, indicating that the adoption of forensic accounting techniques is useful for detecting public sector corruption, and funds lost through bribery, embezzlement, accounting fraud, and financial malpractice can be recovered through the services of forensic accountants.
Implication of findings: The study\u27s findings suggest ways to enhance integrity, accountability, and financial governance in Nigeria, providing actionable insights for improved public sector practices and policies. The study recommends that special courts should be established to speed up the litigation process so that cases that are corruption-related in the Nigerian public sector do not linger for too long, as is the case in conventional courts
Board characteristics and corporate risk disclosures among listed firms in Nigeria
Full text linkPurpose: The study examined the effect of board characteristics on corporate risk disclosure (CRDI) among listed consumer goods firms in Nigeria from 2014 to 2023. Drawing on agency and legitimacy theories, the research investigates how board size, board independence, board nationality, and risk committee size influence risk disclosure practices.
Methodology: The study adopts an ex post facto research design and utilizes secondary data from 18 purposively selected listed firms. Corporate risk disclosures were measured using a 21-item checklist, and panel regression analysis with the Generalized Least Squares (GLS) technique was employed to address potential econometric issues. Control variables included audit firm size and firm age.
Results and Conclusion: Results indicate that board size and board nationality have no significant effect on CRDI, while board independence exhibits a negative and statistically significant impact. In contrast, risk committee size has a positive and significant relationship with corporate risk disclosure. Audit firm size and firm age also significantly influence disclosure levels. The study concludes that specialized governance structures, particularly effective risk committees, are key drivers of enhanced risk transparency, whereas the mere presence of larger boards or foreign directors does not guarantee improved disclosure.
Implication of Findings: These findings imply that firms should prioritize board effectiveness over numerical size, enhance the integration and engagement of independent and foreign directors, and strengthen risk committees through appropriate resourcing and expertise. The study contributes to the literature on corporate governance and transparency by providing context-specific insights for regulators, corporate boards, and policymakers in emerging economies
Agency banking and women employment in Auchi metropolis: evidence from POS operators
Full text linkPurpose: This study examines the effect of agency banking, with particular emphasis on Point of Sale (POS) operations, on women’s employment generation in Auchi Metropolis, Nigeria. It aims to assess the relationship between POS businesses and women’s employment. However, study reexamined the relationship because it was discovered that the nature and existence of this possible relationship were inconsistent.
Methodology: The study adopts a quantitative research approach, using primary data collected from a sample of 109 female POS operators in Auchi Metropolis. Data was analyzed using descriptive statistical techniques to evaluate employment outcomes for POS activities.
Results and conclusion: The findings reveal that POS operations serve as a significant source of employment and income for women in Auchi Metropolis. Despite challenges such as security risks, network failures, and limited access to finance, agency banking has enhanced women’s economic participation and contributed to financial inclusion. The study concludes that POS businesses play a critical role in promoting women’s employment and livelihoods.
Implication of findings: The study implies that policymakers, financial institutions, and regulators should implement targeted interventions—such as improved security measures, reliable network infrastructure, and accessible credit facilities—to strengthen and expand women’s participation in POS operations, thereby fostering inclusive employment and sustainable economic development
Financial Risk, Inflationary Trend and Financial Performance of Listed Deposit Money Banks in Nigeria: A Proposed Framework
Full text linkThe study proposed a framework on the moderating effect of inflationary trend on the relationship between financial risk and the financial performance of Nigeria listed deposit money banks. Literature has shown that financial risk parameters are very essential factors that adversely affect corporate firm financial performance. However, the main objective of this study is to propose a framework on the moderating effect of inflationary trends on the relationship between financial risk variables and financial performance of listed deposit money banks in Nigeria. The independent variable used in this study is financial risk proxy by credit risk, liquidity risk, market risk, operational risk and leverage risk. The moderating variable is inflationary trend measured as ratio of consumer price index (CPI) calculated as annual percentage changes in inflation rate and the dependent variable is financial performance measured by return on assets (ROA) and Tobin’s q. Therefore, based on the reviewed literatures a moderator is introduced to propose a framework for the study resulting from inconsistency in findings of previous studies. The study proposed capital asset pricing model as underpinning theory. As such, the study recommended for empirical investigation on the proposed research framework
Key Macroeconomic Variables and Stock Market Development in Nigeria: Evidence from Granger Causality Test
Full text linkThe study examined the key macroeconomic variables on stock market development in Nigeria using the Granger causality test from Nigeria from 1986 to 2019. The study relies heavily on secondary data (time series) sourced from the various institutions. Data on GDP, money supply (M2), interest rate, and exchange rate were sourced from the Central Bank of Nigeria (CBN). Data of all share indices was sourced from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE). Data on inflation was sourced from the National Bureau of Statistics (NBS). The statistical properties of data were tested using the ADF and PP tests. The test indicated that interest rate and trade openness are stationary at level, while all share index, money supply, exchange rate, and inflation rate are stationary at first difference. The Granger causality test indicates that there is bi-directional causality among the variables except for the exchange rate. Based on these findings, the study recommends that the Central Bank of Nigeria should ensure stability in the exchange rate by promoting trade, tourism, and foreign investment, and it recommends that the Central Bank of Nigeria and fiscal authorities should embark on liberalization policies and ease all trade barriers to encourage trade amongst its trading partners
Climate Change and Stock Market Performance in Nigeria
Full text linkThis study investigates the impact of climate change variables including carbon emissions, rainfall, temperature, inflation, real interest rates, Foreign Direct Investment, and Gross Domestic Product per capita growth rate on stock market performance in Nigeria using the Autoregressive Distributed Lag (ARDL) bound testing approach. Annual data from 1990 to 2022 was analyzed to explore both long-run and short-run dynamics. The results reveal that in the long run carbon emissions and foreign direct investment have a positive and significant effect on stock performance, while inflation has a significantly negative effect. Conversely, in the short run, lag one carbon emission and foreign direct investment one-year lag have a negative and significant effect on stock performance. However, rainfall and temperature did not show any significant effect both in the short and long run. The model demonstrates robust explanatory power, accounting for approximately 96% of the variation in stock market performance. These findings underscore the complex and nuanced interplay between climate change, macroeconomic variables, and financial markets, highlighting the need for policymakers, investors, and corporate managers to address climate and economic risks while leveraging potential opportunities in Nigeria’s evolving financial landscape
Impact of external debt on exchange rate in Nigeria
Full text linkPurpose: This study investigates the impact of external debt on exchange rate movements in Nigeria from 1981 to 2023, assessing how external debt, debt servicing, and foreign reserves jointly influence exchange rate stability within the framework of the Keynesian Theory of Public Debt.
Methodology: An ex-post facto research design and time series analytical approach were adopted, using secondary data sourced from the CBN Statistical Bulletin and the World Bank database. The Autoregressive Distributed Lag (ARDL) technique was applied to estimate both the short-run and long-run dynamics among the variables. The bounds test confirms a significant long-run relationship among the variables (F-statistic = 8.887 > 4.66 at 1% level).
Results and conclusion: In the long run, external debt (LEXDT) and foreign reserves (LFORS) exert positive and statistically significant effects on the exchange rate, while debt servicing (LDBSV) exerts a negative but statistically insignificant effect. The error correction term (ECM = –0.2007) is negative and significant, indicating that about 20% of short-run deviations are corrected annually. With an R-squared of 0.994, the model explains over 99% of exchange rate variations. The study concludes that external debt and foreign reserves are major determinants of Nigeria’s exchange rate dynamics, whereas rising debt servicing worsens currency performance.
Implication of findings: The findings imply that Nigeria must adopt a cautious but productive borrowing strategy, channel external loans into foreign-exchange-generating investments, strengthen debt management practices, build a robust foreign reserve base, and implement a balanced fiscal–monetary policy mix to enhance exchange rate stability and support sustainable macroeconomic growth