EFFECT OF ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ON FOREIGN DIRECT INVESTMENTS IN NIGERIA: EVIDENCE FROM SELECTED SECTORS

This study examined the impact of adopting International Financial Reporting Standards (IFRS) on foreign direct investments (FDI) in various economic sectors in Nigeria. The objectives were to assess the effect of IFRS adoption on the growth and development of key sectors in Nigeria, including oil and gas, banking, agriculture, and manufacturing and to evaluate how IFRS adoption influences Nigeria's access to both domestic and international capital markets, particularly in attracting foreign direct investment. This study adopts a descriptive survey research design. The population of this study comprises professionals and key stakeholders within the banking, oil and gas, agriculture, and manufacturing sectors in Nigeria. A purposive sampling technique was used to select 300 respondents with relevant expertise and experience in financial reporting, investment analysis, and sectoral performance. The structure questionnaire was the instrument for data collection. The collected data was analyzed using both quantitative and qualitative methods. Regression analysis and correlation tests was conducted to determine the impact of IFRS adoption on FDI across sectors. The results showed that IFRS adoption has a significant impact on economic sector growth and development in Nigeria and that IFRS adoption significantly affects Nigeria’s access to capital markets and foreign direct investment. It was concluded that IFRS adoption plays a crucial role in shaping Nigeria’s investment environment. It was recommended among other things that regulatory bodies should enforce strict compliance with IFRS across all sectors, ensuring transparency and consistency in financial reporting. Regular audits, capacity-building programs, and penalties for non-compliance will enhance investor confidence, improve capital market accessibility, and attract sustainable foreign direct investment to Nigeria.