Accounting for the public good: Bridging profit and purpose in addressing Nigeria's development crisis

https://doi.org/10.35912/ijfam.v7i2.3134
Published: Oct 1, 2025

Abstract:

Purpose: This study investigates how public financial management indicators and corporate social responsibility (CSR) efforts influence national development in Nigeria. It focuses on understanding the link between fiscal governance, private sector accountability, and human development outcomes in the context of Nigeria’s persistent development crisis.

Research Methodology: The research employs a quantitative ex-post facto design, analyzing secondary data from 2003 to 2022. Key variables include Capital Expenditure, Debt-to-Revenue Ratio, and the Corruption Perception Index, alongside CSR investment data. A structured econometric model using multiple regression analysis assesses their impact on the Human Development Index (HDI).

Results: Findings reveal that capital expenditure has a significant positive impact on HDI, while corruption perception negatively affects development outcomes. Debt financing contributes positively when effectively managed. Conversely, CSR investments show statistically insignificant influence, indicating a disconnect between corporate initiatives and national development priorities.

Conclusion: Effective public financial management, particularly in capital investment and anti-corruption strategies, remains crucial for enhancing Nigeria’s HDI. CSR’s limited developmental impact suggests the need for stronger integration into national planning.

Limitations: The study is limited by data availability on CSR activities and potential measurement biases in perception-based corruption indices. The exclusion of qualitative CSR outcomes may also under-represent its long-term development impacts.

Contribution: This study offers empirical evidence for aligning fiscal discipline with responsible corporate action. It contributes to stakeholder theory and public interest accounting by proposing policy frameworks that link profitability to purposeful national development, especially in emerging economies like Nigeria.

Keywords:
1. Corporate Social Responsibility
2. Debt Sustainability
3. Stakeholder Theory
4. Public Accounting
5. Public Financial Management
6. Sustainable Development
Authors:
1 . Okubokeme Derek Opudu
University of Africa, Toru-Orua (UAT), Sagbama L.G.A., Bayelsa State, Nigeria
2 . Seth Sokiri Iweias
Ignatius Ajuru University of Education Rumouloumini, Port Harcourt, Rivers State, Nigeria
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How to Cite
Opudu, O. D., & Iweias, S. S. . (2025). Accounting for the public good: Bridging profit and purpose in addressing Nigeria’s development crisis. International Journal of Financial, Accounting, and Management, 7(2), 315–326. https://doi.org/10.35912/ijfam.v7i2.3134
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Issue & Section
Vol. 7 No. 2 (2025): September
Articles
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  1. Adegbite, E., Amaeshi, K., Nakpodia, F., Ferry, L., & Yekini, K. C. (2020). Corporate social responsibility strategies in Nigeria: a tinged shareholder model. Corporate Governance: the international journal of business in society, 20(5), 797-820.
  2. Adeleke, C. J. (2014). Corporate social responsibility in the Nigerian banking sector. Walden University.
  3. Allen, R., Hemming, R., & Potter, B. H. (2013). The international handbook of public financial management. doi:https://doi.org/10.1057/9781137315304
  4. Amaeshi, K. M., Adi, B. C., Ogbechie, C., & Amao, O. O. (2006). Corporate social responsibility in Nigeria: western mimicry or indigenous influences? Journal of Corporate citizenship(24), 83-99. doi:https://doi.org/10.2139/ssrn.896500
  5. Asher, S., & Novosad, P. (2020). Rural roads and local economic development. American economic review, 110(3), 797-823. doi:DOI: 10.1257/aer.20180268
  6. Babatunde, S. O., & Perera, S. (2017). Cross-sectional comparison of public-private partnerships in transport infrastructure development in Nigeria. Engineering, Construction and Architectural Management, 24(6), 875-900. doi:https://doi.org/10.1108/ECAM-11-2015-0186
  7. Bande, H. M. (2022). Corporate Social Responsibility and Financial Performance of Deposit Money Banks in Nigeria. International Journal of Management Studies and Social Sciences, 4(6), 142-158. doi:https://doi.org/10.1177/0974930618809173
  8. Bank, W. (2022a). Enhancing Public Financial Management for Development.
  9. Bank, W. (2022b). Nigeria Development Update : Seizing the Opportunity (English).
  10. Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International journal of management reviews, 12(1), 85-105. doi:https://doi.org/10.1111/j.1468-2370.2009.00275.x
  11. Fagbemi, F., Osinubi, T. T., Nzeribe, G. E., & Bankole, T. O. (2022). Human capital development challenge: Why corruption eradication is a panacea in Nigeria. Journal of Development Policy and Practice, 7(2), 180-205. doi:https://doi.org/10.1177/24551333221090312
  12. Hassan, A. I., Abdullah, N., & Mansor, N. (2024). Corporate, Social Responsibility (CSR) in Nigeria: Investigating Discrepancy between Practices and Blind Spots. International Journal of Business and Social Science Research, 5(7), 1-12. doi:https://doi.org/10.47742/ijbssr.v5n7p1
  13. Idemudia, U., & Osayande, N. (2018). Assessing the effect of corporate social responsibility on community development in the Niger Delta: A corporate perspective. Community Development Journal, 53(1), 155-172. doi:https://doi.org/10.1093/cdj/bsw019
  14. IMF. (2018). Fiscal Transparency Handbook. doi:https://doi.org/10.5089/9781484331859.069
  15. International, T. (2023). Corruption Perceptions Index 2023.
  16. Mohammed, A., Buba, A., & Ahmed, U. O. (2023). Effect of Financial Regulations on Accountability of Some Selected Public Organizations in Nigeria. FUDMA Journal of Accounting and Finance Research [FUJAFR], 1(1), 157-174. doi:https://doi.org/10.33003/fujafr-2023.v1i1.20.157-174
  17. Odior, E., & Alenoghena, R. (2014). Public sector financial management and output growth in Nigeria: A predictive causality test and two-stage least square approach.
  18. OECD. (2021). Revenue Statistics in Africa 2021. doi:https://doi.org/10.1787/c511aa1e-en-fr
  19. Okolo, C. V., Edeme, R. K., & Emmanuel, C. (2018). Economic analysis of capital expenditure and infrastructural development in Nigeria. Journal of Infrastructure Development, 10(1-2), 52-62. doi:https://doi.org/10.1177/0974930618809173
  20. Olaoye, F., & Orimogunje, F. (2022). Public financial management and economic development in Nigeria. Academic Journal of Accounting and Business Management, 3(2), 19-40.
  21. Oluyemi, J. A., Yinusa, M. A., Abdulateef, R., & Akindele, I. (2016). Corporate social responsibility and workers’ well-being in Nigerian banks. African Sociological Review/Revue Africaine de Sociologie, 20(2), 89-101.
  22. Rafindadi, A. A., & Ogidan, O. J. (2018). Empirical analysis of poor public financial management in Nigeria: Causes, implications and remedies. Asian Development Policy Review, 6(4), 178-197.
  23. Umar, I., Samsudin, R. S., & Mohamed, M. b. (2018). Ascertaining the effectiveness of Economic and Financial Crimes Commission (EFCC) in tackling corruptions in Nigeria. Journal of Financial Crime, 25(3), 658-668. doi:https://doi.org/10.1108/JFC-01-2017-0003
  24. UNDP. (2022). Human Development Report 2021-22. UNDP (United Nations Development Programme).
  25. UNDP. (2024). Human Development Report 2023-24. UNDP (United Nations Development Programme).
  26. Usman, A. B., & Amran, N. A. B. (2015). Corporate social responsibility practice and corporate financial performance: evidence from Nigeria companies. Social Responsibility Journal, 11(4), 749-763.