Private sector preference for professional accountants in Nigeria

Abstract

Purpose: This study is to examine the private sector demand for CFOs with certain professional accountancy bodies’ qualification in Nigeria’s listed companies from 2012 to 2018, inclusive.

Design/methodology/approach: The population of this study comprises non-financial services companies quoted on the Nigerian Stock Exchange. Purposive sampling method was used to select the 49 sample used for the research. Research data were tested using non-parametric statistics and simple regression model.

Findings: Results from non-parametric statistics suggest that 89% of all CFOs are ICAN qualified; about 98% of the Nigerian CFOs are ICAN qualified while about 13% of the foreign CFOs hold the ICAN qualification. The evidence further suggests that the ICAN qualification is statistically different from that of non-ICAN qualification. Finally, the evidence indicates that CFOs’ nationalities positively and significantly influence their affiliations.

Practical Implications: The paper recommends that ICAN should be empowered to regulate the accountancy profession in Nigeria. In the alternative there should be created a consortium of accountancy bodies to regulate the accountancy profession in Nigeria.

Originality/value: This is the first empirical paper to examine the demand for CFOs in private listed companies in Nigeria, and the first to link CFOs nationalities and CFOs affiliations with professional accountancy bodies in Nigeria.