TITLE:
AUTHORS:
AJAYI-OWOEYE, Ayooluwa Olotu, IJADUOLA, Adekunbi Ganiat
Page: 05-26 Vol: 20 Issue: 07 Year: 2025
ABSTRACT
The paper explores the impact of tax transparency initiatives on financial misreporting within Nigeria’s oil and gas sector, emphasizing the critical role of transparency in fostering corporate accountability and sustainable governance. Drawing on regulatory efforts such as the Extractive Industries Transparency Initiative (EITI), Country-by-Country Tax Reporting (CCTRI), and Product and Production Tax Report Initiatives (PPTRI), the study examines how these measures influence corporate financial disclosures. Using data from three major listed firms and applying multiple regression analysis, the study finds that while EITI and Corporate Tax Policy Initiatives (CTPI) show statistically insignificant effects, both CCTRI and PPTRI significantly reduce financial misreporting. The research underscores the necessity of robust and enforceable tax transparency frameworks, not only to deter fraud and enhance investor trust but also to improve fiscal accountability, attract foreign investment, and strengthen Nigeria’s economic governance. Ultimately, the paper advocates for a multifaceted approach combining transparency with stringent regulatory oversight to tackle the persistent issue of financial misreporting in the extractive industry.
Keywords:
Tax Transparency, Financial Misreporting, Oil and Gas Sector, Corporate Accountability, Nigeria.
Received: 22 May 2025
Accepted: 26 June 2025
Published: 01 July 2025