IMPACT OF ACCOUNTABILITY ON PUBLIC SECTOR FINANCIAL MANAGEMENT IN NIGERIA
Abstract
Financial accountability is central to financial management. Public financial management cannot be achieved without effective fiscal accountability. This study explored the impact of accountability on public sector financial management in Nigeria (a case study of selected local governments in Lagos State). Specifically, the study examined the extent to which regulatory laws, compliance reporting, and statutory oversight affect the financial management of Nigeria’s public sector. The research explored her seven public institutions in Nigeria namely her NDLEA, NERC, NOA, NDIC, BPE, DMO and NPC. Questionnaires were used to collect data from respondents who were accountants and auditors of selected institutions. Descriptive statistics and multiple regression analysis were used for data analysis. As a result, we found that regulatory laws, compliance reports, and legal controls have a significant impact on the financial management of selected institutions. Among other things, the investigation empowers governments to put in place strategic structures that enable the establishment of tax accountability frameworks, to protect whistleblowers, and to create an enabling environment for tax accountability in general. I suggested that it is necessary to enact regulations to give. They have the real ability to improve the financial management of Nigeria’s public sector.
chapter One
Foreword
1.1 Research background
Financial management focuses on making decisions about the use and management of an organization’s or company’s finances. Financial management is a subset of management activities that focus on how to plan and manage an organization’s financial resources. Financial management also includes the procurement and optimal use of funds for the smooth running of an organization. Financial management maximizes an organization’s net worth, allocates scarce productive resources among competing demands, and identifies possible avenues for implementing strategies to achieve stated goals for such an organization. focus on. To this end, the management of public finances can be described as the process of procuring, managing, planning, coordinating, organizing, and directing the financial resources of subnational government agencies. These quasi-governmental agencies include federal ministries, state ministries, local councils, authorities, and offices.
Local government is the lowest level of government that is closest to the people. Local government in this current distribution arose from the pre-colonial transitional system of government and was highly localized according to state characteristics. The Ward Council is the basic unit by which each nation governs its people at the grassroots level. The meaning of constitutionally guaranteed governance structures and proximity to the people necessitates the need for accountability in financial management and its governance norms, which becomes clearer at this level (Adiogu, 2013). In contrast, local governments in Nigeria are often viewed as hotbeds of flagrant corruption and lack of accountability in the delivery of public services. But instead of delegating its function as a development center to people on the ground, local government councils developed a notorious reputation for corruption, financial disregard, and gross financial mismanagement. Agbo (2012) argued for this lack of integrity. Accountability and transparency at the local government level hinder people’s well-being. Additionally, theft, embezzlement, nepotism, embezzlement of public funds, embezzlement of public assets, and avoidance of financial and non-financial problems have become commonplace in Nigerian local governments.
Public accountability is a hallmark of modern democratic societies. Because public money is in the hands of governments, public sector accountability around the world is being given the utmost attention. Those within the government assume fiduciary status with the associated responsibilities that require submitting fiduciary accounts to people trusted by the agency (Haruna, et al, 2015). Officials are expected to be held accountable by demonstrating the effective use of public assets and funds in the provision of services
The public sector is responsible for using public resources, raising funds (income) and spending them for the benefit of the people. Accountability principles are based on trust, belief, and resources by an organization’s management (private accountability) or government (public accountability). Public officials must provide complete, appropriate and accurate information regarding the administration of public funds. The public sector, which is seen as the custodian of public resources, laws and mechanisms for national development, has lost the goodwill of its citizens due to its lack of accountability.
If Haru. (2015) implied that departments, institutions, and departments did not adequately adhere to the principle of accountability. This claim is consistent with Akinbuli (2015), who found that the duties and trusts of officials are not effectively and efficiently discharged. Accountability has been neglected in the public sector. Most public semi-public companies in Nigeria do not maintain proper accounting records and rarely issue annual reports or audited accounts on time. Academics have identified financial mismanagement, inefficiency, inefficiency, mismanagement and negligence as hallmarks of the Nigerian public sector.
Problems related to public sector financial management, especially lack of accountability in local governments, include employment coercion, procurement corruption, diversion of funds into private bank accounts for infrastructure development, theft of public assets, and loss of internal revenue. Unauthorized collection, contractor. Termination of contracts with false contractors, friends and family members, payment of salaries and benefits to ghost workers, failure to record expenses, embezzlement of funds by council leaders for improper personal gain , destruction of documents unfavorable to council leaders or chief executive officers, avoid prosecution for nepotism, etc. Most subnational governments do not fully adhere to the principle of accountability. No wonder Appah (2012) argued that achieving accountability in the Nigerian public sector is very difficult.
To this end, this study examines the impact of accountability on public sector financial management in Nigeria. This is a case study of several selected local governments in Lagos State.
1.3 Purpose of the survey
The main objective is to study the impact of accountability on public sector financial management in Nigeria.
The specific objectives of this research are to:
He studies the impact of regulatory law on financial management in the Nigerian public sector. Assessing the Impact of Regulatory Controls on Financial Management in the Nigerian Public Sector.
I study the impact of compliance reporting on financial controls in the Nigerian public sector.
1.4 Research question
The questions of interest in this study are:
To what extent do regulatory laws affect public sector financial management in Nigeria?
To what extent have legal controls affected public sector financial management in Nigeria?
To what extent has compliance reporting impacted public sector financial management in Nigeria?
1.5 Research hypothesis
The research hypothesis underlying the study is:
H01:
Regulatory laws have not had a significant impact on public sector financial management in Nigeria.
H02:
Legal controls do not have a significant impact on public sector financial management in Nigeria.
H03:
Compliance reporting does not have a significant impact on public sector financial management in Nigeria.
1.6 Operationalization of variables
This study examines the impact of accountability on public sector financial management in Nigeria. Accountability represented by regulatory laws, statutory controls, and compliance reporting for financial management in the Nigerian public sector. The dependent variable is financial management and the explanatory variables are regulation, legal control, and compliance reporting. The functional form of the model can be expressed as
Y=f(X)…………(1.1)
Y=f(X1,X2,X3)……………….. (1.2)
From where:
Y=Financial management
X= accountability, representative of regulatory law (X1); legal controls (X2) and compliance reporting (X3).
Model 1:
The impact of supervisory laws on financial management
Y=f(X1)…………(1.3)
Y=β0 + β1X1+ µ……………… (1.4)
Model 2:
Impact of laws and regulations on financial management
Y=f(X2)…………(1.5)
Y=β0 + β1X2+ µ……………… (1.6)
Model 3:
Impact of compliance reporting on financial controls
Y=f(X3)…………(1,7)
Y=β0 + β1X3+ µ……………… (1.8)
1.6 Importance of research
Through its findings, this study helps identify factors that may arise from poor financial management accountability in the Nigerian public sector. You are also expected to provide relevant suggestions to improve efficiency, efficiency and service delivery. This study will be of great benefit to accountants as it will help accountants improve their day-to-day operations and effectively manage the finances of their respective semi-public companies. Financial analysts will find this work invaluable as it serves as the basis for advising clients on their investment decisions.
Additionally, the study will encourage local, state and federal departmental, agency, and departmental managers to develop policies that improve processes of accountability, transparency, and integrity in their operations. It also helps various government-established agencies combat corruption within semi-governmental institutions. Likewise, students will find this study a guide for future research on the subject. 1.7 Research scope and limitations
This study examines the impact of accountability on public sector financial management in Nigeria by prioritizing selected areas of government in Lagos State. Five Lagos State municipalities were selected as case studies, including Alimosho LGA, Badagry LGA, Kosofe LGA, Etiosa LGA and Lagos Island LGA.
Limitations identified in this survey are time constraints, cost constraints, and reluctance of respondents to provide the required data.
The time allotted to complete this study is relatively short given the researchers’ other academic commitments. Due to lack of funding, the investigation was limited to her five municipalities in Lagos State. Additionally, respondents who were account officers at selected LGAs were somehow reluctant to participate in the survey. Nonetheless, studies are being conducted to determine solid facts.
1.8 Definition of key terms
Definitions of key terms are as follows:
accountability
This refers to being based on relationships.
Leave a Comment