MARKET APPROACH AND CORPORATE PROFITABILITY OF LISTED CEMENT FIRMS IN NIGERIA

This study investigates market approach and corporate profitability of listed cement firms in Nigeria. Anchored within the International Financial Reporting Standards (IFRS) fair value framework, the research specifically examines the relationship between the market approach and two key profitability metrics: Return on Capital Employed (ROCE) and Return on Equity (ROE). Employing an ex-post facto research design, secondary data were collected from the annual reports of three major cement manufacturers such as Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc for the period 2009– 2014. Data analysis using regression revealed a strong positive and statistically significant effect of the market approach on both ROCE (R² = 0.825, p = 0.033) and ROE (R² = 0.812, p = 0.037), leading to the rejection of the null hypotheses. The findings indicate that the use of observable market-based valuations enhances the transparency and relevance of financial reporting, providing a more accurate reflection of asset values and, consequently, improving reported profitability ratios in this capital intensive sector. The study concludes that the consistent application of the market approach under IFRS 13 contributes positively to profitability assessment. It is recommended that Nigerian regulators strengthen implementation guidelines for the market approach and that firm management enhance related financial disclosures to bolster stakeholder confidence in reported performance metrics.