THE EFFECT OF ACCOUNTING REGULATIONS ON THE COST OF DOING BUSINESS IN NIGERIA

Accounting regulations play a crucial role in ensuring transparency, comparability, and investor confidence in financial reporting. However, compliance with these regulations often imposes significant financial and operational burdens on businesses, particularly in developing economies such as Nigeria. This study examines the effects of accounting regulations on the cost of doing business in Nigeria, with a specific focus on small and medium-sized enterprises (SMEs). The research explores key cost components, including audit fees, employee training expenses, technology investments, and consultancy fees required for regulatory compliance. Using a mixed-methods approach, the study collects data from SMEs in Benin City, Nigeria, through structured surveys and interviews. The findings reveal that compliance costs constitute a major operational challenge, disproportionately affecting SMEs with limited financial resources and technical expertise. The study also highlights that frequent amendments to accounting standards further increase the complexity and cost of compliance, leading to operational disruptions and reduced profitability. While large corporations have the capacity to absorb these costs, SMEs often struggle, raising concerns about business sustainability and economic growth. The study provides valuable insights for policymakers, regulatory authorities, and business owners by recommending measures to reduce compliance costs while maintaining financial transparency. These include the provision of regulatory support for SMEs, government incentives for compliance, and capacity-building initiatives to enhance financial literacy among business owners. By addressing the challenges posed by accounting regulations, this research contributes to the broader discourse on regulatory efficiency and business sustainability in Nigeria.