Conflict of Interest Management and Financial Reporting Integrity in Nigerian Conglomerates

This study investigates conflict of interest management practices and their relationship with financial reporting integrity in Nigerian conglomerate companies. Conglomerates, with multiple subsidiaries and complex intergroup transactions, present elevated risks of conflict of interest, which can compromise the objectivity and accuracy of consolidated financial statements. Nigeria's corporate governance code requires disclosure of related-party transactions and mechanisms for managing director conflicts; however, the adequacy of these measures in conglomerate structures merits empirical investigation. Drawing on agency theory and recent IFRS-related governance literature, this study evaluates how conflict of interest policies including independence declarations, recusal protocols, and audit committee review practices relate to financial reporting integrity outcomes. A descriptive research design is adopted, combining secondary data from annual reports of ten conglomerate groups listed on the Nigerian Exchange Group with a survey administered to twenty-five board members and audit partners. Data are analysed using descriptive statistics and regression techniques. The study anticipates that conglomerates with formalised conflict management protocols demonstrate superior financial reporting integrity as measured by audit opinion quality and restatement frequency. Findings will assist the Financial Reporting Council, audit firms, and conglomerate boards in refining conflict governance standards. Keywords: conflict of interest, financial reporting integrity, conglomerates, corporate governance, Nigeria.