ASSET MISAPPROPRIATION FRAUD AMONG SMALL SCALE BUSINESSES IN NIGERIA

ABSTRACT

This study examines asset misappropriation fraud among small scale businesses in Nigeria. The cross sectional survey research design was adopted for this study. The population of this study consists of owners of selected small scale businesses in Nigeria. The small scale businesses comprises various sectors, including ICT, Agriculture, Hospitality, Beauty and Lifestyle, Manufacturing, Health Care and Service Industries. A sample of two hundred and thirty six (236) small scale businesses was selected for this study. The responses from the distributed questionnaires were analyzed using descriptive statistics and inferential statistics (independent sample t-test) to test for the nature, magnitude, causes, effect and solutions of asset misappropriation among small scale businesses in Nigeria. The justification for choosing these sectors was due to the fact that small scale businesses are present in all industries. The study relied on primary data, which was derived from the responses on the distributed questionnaires. The most prevalent form of asset misappropriation experienced among small scale businesses in Nigeria is cash theft. One of the main causes of this fraud being lack of secure and confidential reporting systems and a reduction in business profit margins constitute the main consequence the businesses have suffered as a result of asset misappropriation fraud. Most of the small businesses cited installation of security systems like cctv as the foremost solution to such fraud. The frequency of asset misappropriation fraud is influenced by the types of assets being targeted within small businesses in Nigeria. The asset misappropriation fraud is not exceptionally prevalent in small scale businesses in Nigeria. Asset misappropriation fraud decreases when more internal control is introduced but they do not have a significant relationship in small scale businesses in Nigeria. There are various consequences that are suffered by small scale businesses due to asset misappropriation fraud and there are significant effects caused by asset misappropriation. Various solutions were agreed to exert a significant effect on reducing the instances of asset misappropriation fraud among small scale businesses. Therefore the study recommends that small scale businesses should enhance asset protection measures, indulge in training and education of employees and ensure continuous monitoring and reporting in order to create a hostile environment for current and potential asset misappropriation fraud.