Fiscal Accountability Dilemma In Nigeria Public Sector: A Warning Model For Economic Retrogression

FISCAL ACCOUNTABILITY DILEMMA IN NIGERIA PUBLIC SECTOR: A WARNING MODEL FOR ECONOMIC RETROGRESSION

Abstract

Nigeria wasted many hundred billions of Naira over the last few decades as a result of gross misuse of rules, a lack of openness, and merit in the awarding of contracts in the public sector, according to a 2001 diagnostic survey into the federal government’s public procurement. Legislative committees, financial audits, ministerial control, judicial reviews, anti-corruption organizations, advisory committees, parliamentary inquiries, and public hearings were implemented to ensure accountability in the public sector, just as they do in developed nations, but so far there has been no discernible improvement. This study looked into public sector accountability in Nigeria. The study’s target audience is the Nigerian public sector, and the National Assembly, Presidency, Ministry of Works, and Ministry of Finance served as the sample frames. The primary data source was a standardized questionnaire that was randomly sent to 100 management staff members of the aforementioned businesses. With the use of SPSS, data were examined using Pearson Product Moment Correlation. The findings indicated that Nigeria’s lack of accountability is caused by a weak accounting infrastructure, a lax regulatory environment, and the mindset of government employees. It was suggested that the government, professional accounting organisations, and the general public cooperate to have a significant resolution to this issue as soon as possible.

Introduction

The purpose of government is to meet the needs of the people and make sure those requirements are met effectively and efficiently. By establishing explicit procedures and frameworks for all facets of executive management (decision-making, strategic alignment, managerial control, supervision, and responsibility), it achieves these objectives. Due to the recent financial scandals, the topic of governance in both the public and private spheres is currently more popular than ever. Higher degrees of accountability and openness are being demanded by the public and regulators in all corporate sectors, particularly in the public sector. The World Bank discovered in a recent study that there is a strong correlation between strong governance and high levels of performance (Word Bank 1997). In order to strengthen governance and control, many governments nowadays are adopting accrual basis of accounting, which is a typical practice in the private sector. This raised the issue of employing the proper accounting system. When a strong correlation between spending and output is established, accountability is made possible. In contrast to budgeting and spending, accrual accounting enables organizations to concentrate on outcomes and results. The term “accountability” is used synonymously with phrases like “responsibility,” “answerability,” “blameworthiness,” “liability,” and other terms connected to the expectation of account-giving in ethics and governance. Every civilized and well-organized government in the world has it as a top priority. Accountability is a term that is increasingly utilized in political discourse and policy texts because it evokes feelings of transparency and dependability (Bovens, 2006). The government is entrusted with the public’s money and other resources, and in order to assure their best use, it must uphold the highest ethical standards, honesty, integrity, propriety, and neutrality. Only via a mix of individual professionalism, personal standards, and a strict control structure can these aims be accomplished. Openness and transparency foster public trust and confidence and are increasingly regarded as essential elements of any government’s operations.