Research Article

Internal Audit Function and Investment Efficiency in Nigerian Manufacturing Companies

CHIDINMA ASUZU1*, Maimako Livinus Nkuri2, Daniel Orsaa Gbegi3
1 University of Jos
2 University of Jos, Nigeria
3 Federal University of Kashere, Gombe State, Nigeria
* Corresponding author: chyasuzu100@gmail.com
Published: Jul, 2026
DOI: 10.67862/nahj.2026.9qpm39t7
Pages: 336-385

Abstract

This study examined the relationship between Internal Audit Function (risk management, internal control, governance) and Investment Efficiency in Nigerian manufacturing companies. Globally, investment efficiency is recognized as vital in the financial success and sustainability of businesses across various industries. Despite this recognized importance, there is scant research specifically examining its determinants. While internal audit is widely acknowledged as a critical function within organizations, its specific role in influencing investment efficiency remains largely unexplored, particularly in the context of Nigerian manufacturing companies. This knowledge gap presents a significant challenge for manufacturing companies seeking to enhance investment decision-making processes and sustainable growth within the sector, hence this research. The study employed a cross-sectional field survey research design and primary data was used. Data was collected through the administration of copies of questionnaire to staff of selected companies. Population of the study comprised 1,959 staff of the 4 manufacturing companies examined - two in the southern and the other two in the northern part of the country. Slovin’s formula was used to determine a sample size of 332. Multiple Linear Regression was applied. Result revealed that there is significant relationship between risk management, internal control, governance and investment efficiency in Nigerian manufacturing companies. The study recommends that management of manufacturing companies should prioritize internal audit function, recruit qualified personnel in the audit department, ensure its independence and establish robust internal control mechanisms to mitigate risk. This will considerably promote investment efficiency in Nigerian manufacturing companies and ultimately lead to economic and sustainable growth.

Keywords

Investment Efficiency Internal Audit Function Risk Management Internal Control Governance

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How to Cite

ASUZU, C., Nkuri, M. L., & Gbegi, D. O. (2026). Internal Audit Function and Investment Efficiency in Nigerian Manufacturing Companies. Nigerian Accounting Horizon Journal, 11(1), 336-385. https://doi.org/10.67862/nahj.2026.9qpm39t7

C. ASUZU, M. L. Nkuri, and D. O. Gbegi, "Internal Audit Function and Investment Efficiency in Nigerian Manufacturing Companies," Nigerian Accounting Horizon Journal, vol. 11, no. 1, pp. 336-385, July 2026. doi: 10.67862/nahj.2026.9qpm39t7

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