The Fiscal Responsibility Act and Transparency in Funds Management in the Nigerian Public Service
Building and sustaining a viable economy has been a major preoccupation of successive governments in Nigeria. Despite the abundance of oil and other mineral resources, the country has remained poor and underdeveloped when compared to other major oil-producing countries. The situation has been attributed to corruption and lack of transparency in government. The general objective of the study is to ascertain the relationship between the Fiscal Responsibility Act and funds management in the public service in Nigeria. The specific objectives are to: compare the corruption perception index with the country ranking, analyse the extent to which the Fiscal Responsibility Act has injected transparency and accountability into the financial reporting system of Federal Ministries, Departments, and Agencies (MDA), evaluate the necessity for the adoption of the International Public Sector Accounting Standard (IPSAS) in addition to the Fiscal Responsibility Act. The methodological triangulation research method was adopted in the study while correlation was employed in the analysis of data. Both primary and secondary data were employed. Extant literature was collated, classified, and analyzed. The findings revealed among others, the following: (1) The non-compliance with the provision of the Fiscal Responsibility Act in the preparation of financial statements by MDAs is partly responsible for the high level of corruption in the public sector. (2) The adoption of IPSAS will enhance the appropriate disclosure system by public institutions in reported financial statements. Thereby encouraging accountability and transparency. The study recommends among others, strict enforcement of the Fiscal Responsibility Act and IPSAS’s provisions.
Keywords: Accountability, Transparency, Fiscal Responsibility Act, Public sector, Funds Management
Citation: , & Alagba, O.S. (2024). The Fiscal Responsibility Act and Transparency in Funds Management in the Nigerian Public Service. International Journal of Innovative Research in Accounting and Sustainability, 9(4-Special Issue), 9-18.