This study examined the effect of impact of inflation and exchange rate volatility on financial reporting quality of firms in Nigerian from (2013-2023). Three research questions guided the study and corresponding three hypotheses was developed for the study. Specifically, the study focused on evaluating the impact of inflation and exchange rate on earnings quality of selected manufacturing firms in Nigeria and to investigate the effect of inflation and exchange rate on accounting conservatism of selected manufacturing firms in Nigeria. Ex-post facto research design was employed in the study. The population of the study included fifty-three (53) manufacturing firms quoted on the Nigerian Exchange Group (NGX) as at 31st December 2026. Amongst other preliminary analysis and tests, the ordinary least square regression with robust standard error was employed in validating the hypotheses of the study. The study found no significant impact of inflation and exchange rate on earnings quality of selected manufacturing firms in Nigeria (P > 0.05); The study also found that there is a joint effect of inflation and exchange rate on accounting conservatism of selected manufacturing firms in Nigeria (P < 0.05). Consequent on the above findings, I was therefore recommended amongst others that regulatory authorities and corporate management should encourage the adoption of conservative accounting practices, particularly during periods of high inflation and exchange rate volatility as this will enhance the prudence, transparency, and overall quality of financial reporting, thereby improving stakeholders' confidence in financial reports.
Hilary Emeka (ACA) Afodigbueokwu (Fri,) studied this question.