Abstract

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.