A Critical Exploration of the Trajectory and Issues Surrounding Financial Reporting in the Nigerian Context

This review critically explores the historical evolution, current landscape, challenges, and prospects of financial reporting in Nigeria. Tracing its origins from colonial-era practices influenced by British legislation to the adoption of International Financial Reporting Standards (IFRS) in 2012, the study highlights Nigeria’s efforts to align with global standards and enhance financial transparency. Despite these milestones, persistent issues such as weak enforcement mechanisms, corruption, limited professional capacity, and technological constraints continue to undermine reporting credibility. Comparative analysis with other emerging economies reveals that Nigeria lags in institutional and technological readiness but demonstrates strengths in professional training and capital market development. The review underscores the importance of strengthening regulatory independence, integrating digital innovations, enhancing corporate governance, and expanding public sector reforms. It concludes that transparent and reliable financial reporting is indispensable for investor confidence, corporate accountability, fiscal transparency, and sustainable economic growth in Nigeria. Keywords: Financial reporting, Nigeria, IFRS adoption, regulatory enforcement, corporate governance.