Abstract
Despite concerted efforts made by successive government administrations in Nigeria to eliminate or better still minimize the menace of fraud, embezzlement, misappropriation of funds, inflation of contract prices, payment of salaries to ghost workers etc., it seems as if the challenge is far from being over. It is believed that the implementation of effective and efficient financial control systems may result in better performance, accountability, and better reporting process in the public sector. This study aims to assess the effectiveness of financial control in the public sector of Nigeria using Akoko South-West Local Government Area (ASWLGA) as a case study. The study employed both descriptive and econometric analytical methods to achieve the stated objectives. Specifically, the hypotheses were tested using regression analysis based on the primary data collected. The study revealed that the level of financial control in ASWLGA is adequate and capable of reducing financial misappropriation and that financial control is also cost-effective. However, there is a need for regular review of the financial control system in order to boost the effectiveness of the public sector.
Highlights
Over the years, cases of fraud, embezzlement, misappropriation of funds, inflation of contract prices, payment of salaries to ghost workers, among others, have been a burning issue in the country (Appah & Appiah, 2010; Okpala, 2012)
The effective and efficient utilization of financial resources is germane for all institutions, both at the private and public sectors in other to achieve the goals and objectives from the activity for which the funds have been made available. Sometimes such funds are misused by the agents in charge, which brought about the need for effective financial control in order to reduce financial misappropriation
This study seeks to ascertain the effectiveness of financial control in the public sector of Nigeria, using Akoko South-West Local Government Area (ASWLGA) as a case study
Summary
Cases of fraud, embezzlement, misappropriation of funds, inflation of contract prices, payment of salaries to ghost workers, among others, have been a burning issue in the country (Appah & Appiah, 2010; Okpala, 2012). Nigeria scored a total of 26 percent of the possible 100 percent (Transparency International, 2020; Akor, 2014). This is because the public sector lacks accountability and efficient financial control. The public sector is exposed to certain threats as a result of ineffective and inadequate financial control measures. These threats include inaccurate financial statements, misplacement of government assets, and application of accounting policies that are not in accord with the relevant law enactment
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