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ACCOUNTABILITY AND TRANSPARENCY IN THE NIGERIAN PUBLIC SERVICE: A STUDY OF SELECTED LOCAL GOVERNMENT IN OGUN STATE IN NIGERIA

Authors:
  • Babcock University, Ogun State, Nigeria
  • Lead City University Ibadan

Abstract

The welfare of the people is as stake as a result of lack of integrity, accountability, and transparency at the government level. This study assessed the effect of accountability and transparency in financial reporting system of the Nigerian public service in Ogun State. Field survey research method was adopted, primary data obtained through the administration of structured questionnaire was used and the hypotheses were tested using regression analysis. The target population of the study was the entire forty-nine (49) staff of the finance division of the three (3) selected local governments in Ogun State (Ikene, Iperu, and Shagamu) while 43 questionnaires were retrieved and analyzed. The finding of the study revealed that the financial reporting system of public offices in Ogun state is very weak due to lack of proper accountability and transparency. Majority of the offices lack reliable, relevant and material information which could be used to prepare quality financial reporting system. The study recommends that government should ensure financial report produces budgets assessed by the national assembly which is expected to be disclosed to the public. Also, government should ensure that the audit committee is restructured.
Islamic University Multidisciplinary Journal IUMI Vol. 6(3), 64-83, 2019
ISSN: 2617-6513 (Online), ISSN: 2409-0263 (Print) http://www.iuiu.ac.ug
64
ACCOUNTABILITY AND TRANSPARENCY IN THE NIGERIAN PUBLIC SERVICE:
A STUDY OF SELECTED LOCAL GOVERNMENT IN OGUN STATE IN NIGERIA
Grace Oyeyemi Ogundajo1, Godwin Emanuel Oyedokun2 and Ayodeji Temitope Ajibade3
1&3 Department of Accounting, Babcock University, Ilishan- Remo, Nigeria
2Department of Accounting, Nasarawa State University, Keffi, Nigeria
1goyen01@yahoo.com, +23470-6526-3796; 2godwinoye@yahoo.com, +2348033737184;
2ajibadeayodeji@gmail.com; +2347034401290
Abstract
The welfare of the people is as stake as a result of lack of integrity, accountability, and
transparency at the government level. This study assessed the effect of accountability and
transparency in financial reporting system of the Nigerian public service in Ogun State.
Field survey research method was adopted, primary data obtained through the
administration of structured questionnaire was used and the hypotheses were tested using
regression analysis. The target population of the study was the entire forty-nine (49) staff
of the finance division of the three (3) selected local governments in Ogun State (Ikene,
Iperu, and Shagamu) while 43 questionnaires were retrieved and analyzed. The finding of
the study revealed that the financial reporting system of public offices in Ogun state is very
weak due to lack of proper accountability and transparency. Majority of the offices lack
reliable, relevant and material information which could be used to prepare quality
financial reporting system. The study recommends that government should ensure financial
report produces budgets assessed by the national assembly which is expected to be
disclosed to the public. Also, government should ensure that the audit committee is
restructured.
Key Words: Accountability, Financial reporting, Financial management, Integrity,
Transparency, Public service, Local government
Introduction
Accountability and transparency has always been a major course for concern for many years as a
result of misstatement of the financial statement, fraud and corruption in the public service.
Although some policies and some legislative act have been made by the government concerning
this issue after the establishment of the Nigerian Constitution in 1990 with several amendments
over the years; Budget Monitoring and Price Intelligence Unit(BMPIU), the Economic and
Financial Crimes Commission (EFCC) Act 2002; the Independent Corrupt Practices and other
related offences (ICPC) Act (2000); the Advance Fee Fraud and other related offences Act (1995);
the Financial malpractices in Banks Act (1994); among others, still; headlines are still posted about
the issue of corruption in the public service. A proper solution has not been found. The general
assembly, as it resumed its fiftieth session on public administration and development held in New
York in April (1996) laid emphasis on the fact that there is a critical need to improve accountability
and transparency in the public service. One of the key observations was that there is a critical need
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65
for the Government, multilateral and bilateral donor to recognize the importance of accounting
and audit system in order to provide sound reporting system.
Due to financial scandals reported in daily independent on 2013, about 5.6billion pension scam in
Oyo state head of service and 1.6million bullet proof BMW car in aviation ministry is reported by
Uwajaren 23rd June 2013. Efe (2016) affirmatively declared that a country with abundant human
and natural resources became the honey pot of predators in the public service. Today Nigeria is
now seen as one of the corrupted country in which one of the problems is lack of accountability
and transparency in the financial reporting system. A report by KPMG rated Nigeria as one of the
most fraudulent country (2013). Accountability is now seen as relevant in the issue of corruption
in the public service in order to maintain a transparent and fraudulent free report in the public
sector.
Accountability is referred to as being able to give accountable and responsible answers for an
account. Adegite (2010) noted that accountability is a proof that states that work has been done in
accordance with the standards and agreed rules and officers report fairly and accurately on
performance result along sides mandated roles and or plans. In a lame man’s language,
Transparency on the other hand means providing clear information of a particular thing.
Transparency and accountability goes together because a report can’t be clear if it’s not
accountable. Achua (2009) says “serious consideration is being given to the need to be more
accountable for the often vast amounts of investment in resources at the command of governments,
which exercise administrative and political authority over the actions and affairs of political units
of people. Government spending is a very big business and the public demands to know whether
the huge outlays of money are being spent wisely for public interests”. The term accountability is
needed in the government financial report to show a clear picture of the financial activities going
on in the public sector. Iyoha and Oyerinde (2009) referred to the relationship between statutory
and public office holders as that of principal-agent relationship where the public officers are
statutorily required to demonstrate proper accountability, openness and effectiveness in the
management of public fund. This is expected as their stewardship responsibilities
The welfare of the people is as stake as a result of lack of integrity, accountability, and transparency
at the government level (Agbo, 2012). If the financial statement does not show an accurate report
and true report, it would affect the wellbeing of the people because all this report collated together
is meant to show the net worth or the national income of the country but if anything goes wrong
its affect the development of the country which in that case would indirectly affect the economy.
The problem of accountability has been existence for many years in the public sector and as a
result as affected the Nigerian economy negatively. An instance of ghost workers existing in
payroll, embezzlement of public fund, and corruption has been recorded to have occurred and still
occurring in the public service. However, reporting system has been criticized for not reporting
government liability and the real state of other finances (Akenbor & Oghoghomeh, 2011). Also,
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66
public officers are guilty of not ensuring that their duties their duty is effectively and efficiently
enough to avoid lack of transparency and accountability. Lack of transparency in the public sector
is as a result of poor implementation of law (Madumere & Okegbe, 2014).
These fraudulent practices found in the public sector if not taken care of can affect the economy
in sense that if the financial report is not up to standards or checked properly the current situation
of the country leaves the government policy less effective in the economy. There are also instances
reported that the financial statement in the public service are reported late and peoples view
concerning this matter is that the financial statements are reported late because of manipulations
of the financial statements by those preparing the government financial statement. In 2001, Federal
Government public procurement conducted a diagnostic survey, it was reported that Nigeria lost
several hundred billions of Naira over the last few decades due to flagrant abuse of procedures,
monumental corruption, lack of transparency and merit in the award of contracts in the public
sector and accountability quandary. (Uremadu, 2004) asserted that lots of billions vanished on
frequent basis from government treasury as reported by Federal Government public procurement
2001 diagnostic survey but the question is where has it vanished to? In the course of this, this study
examined how accountability and transparency influences the financial reporting system in public
offices in Ogun State.
Literature Review
Underlying Theories
This study is hinged on two theories; stakeholders’ theory and institutional theory. Stakeholder
theory propounded by Edward, modified by Freeman (1984), defined it as “Any group or
individual who can affect or is affected by the achievement of the organization’s objectives” The
theory asserted that stakeholders are required to be provided with reports in order to know the
actual performance and make decisions regarding the business. Such report is expected that values
are impacted to the stakeholders and that the stakeholders are enjoying the benefit for which they
are entitled to. Fontaine, Haarman and Schmid (2006) described normative stakeholder theory as
ethical behavior to be portrayed by the manager and stakeholders in viewing the purpose of the
organization. Stakeholders’ theory entails accountability and transparency of the management
(government) to the stakeholders (citizens). In this case, the public is the stakeholder and any
decision made by the government affects the public one way or the other. Also, a government
sector that is not providing transparent and accountable reporting to the stakeholder is reducing its
value expected to be to stakeholders and therefore having a negative effect on the stakeholder.
Young (1982, revisited in 2003) viewed institutional framework as social institution affecting the
management and environmental policy as a whole it is the external factors that affects and
influences the internal environment; it includes sets of rules and standards that when neglected
could affect the business environment as a whole (external and the internal environment). ‘The
policy debates on the relationship between economic and environmental concerns or the allocation
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67
of technologies required to achieve environmental management objectives, are ways in which
conventional environmental management is conceptualized. Theories on institutional analysis has
created an overview of the causes of change in features of an organization and has also stated that
the organization has been able to secure legitimacy through the ability of the organization to be
able to comply with environmental codes and conducts and when the environmental expectations
are met. Zucker (1997) (1983); Tolbert and Zucker (1983); Scott (19870). Institutional theory is
useful in showing how the organization adds to the sustainability level ad environmental reporting
as a result of as a result of institutions or accepted practices surrounded by the organization
(Zucker, 1987).
Review of existing related literature
Oloruntoba and Gbemigun (2019) investigated the relationship between the transparency among
public office holders and the performance of the Nigerian public service using Ose Local
Government Area Secretariat, in Ondo State as case study. It was concluded that appraising the
transparency of public officials positively impacted on the performance of public sector in Nigeria.
They recommended that public officers should be made answerable to any misappropriation or
mismanagement of funds traceable to such irrespective of the caliber of the officer in the society.
Okere and Ogundana (2019) opined that inefficiency of the Nigerian capital markets, financial
instability and non-sustainability of economic growth and development are consequences of
improper accountability and lack of transparency among the public office holders and statutory
officials of the government.
Sylvester (2012) assessed the role of accountability in the public sector in Nigeria using field
survey research; it was discovered that poor accountability affects the allocation and development
of resources in Nigeria. They opined that every government department ministry and agency
should provide financial statement in every financial year that discloses budget and a report that
shows the performance, various analysis and factors prohibiting performance. Also, Onuorah and
Appah (2012) in their study titled Accountability and public sector financial management in
Nigeria, found that the level of accountability is very poor in Nigeria as a result of unavailability
of relevant, reliable and quality information about government activities. The study opined that for
accountability to be successful, in the management of public funds in Nigeria, there must be
reduction of corruption, increase in public sector accounting and auditing standards, and also,
restructuring of audit committee.
As reviewed by Osho and Afolabi (2014) in their study on the effects and effectiveness of
accountability and transparency in government sectors. They made use of secondary data, cross
tabulation and chi square were used to analyze the data. Based on the findings, they recommended
that independent and effective internal control will be needed to achieve accountability and
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transparency in the government sector. Madumere and Okegbe (2015) conducted a study on 36
states in Nigeria using descriptive statistics for the study variables. This study is as a result of lack
of implementation of socio economic reforms and its effect on the economy. Based on the findings
this study suggested that government should provide an audit committee independent of the
ministry.
Omodero and Okafor (2016) reported in their study ‘efficiency and accountability of public sector
revenue and expenditure in Nigeriathat the level of accountability is very poor in Nigeria as a
result of lack of comprehensive, relevant, quality and reliable pubic financial report. It was
recommended that for accountability to be successful in management of public fund there must be
reduction in the level of corruption, public sector accounting and accounting standards should
improve, public account committee should be restructured and the value of money should be
applied in the conduct of government business.
Abdul-Kahar, Ebi, Bin, and Nasser (2019) carried out a study on government financial reporting
and public accountability in using primary data through administration of questionnaire and
personal interview. The study reported a weak score for the level of managerial accountability
which depicts reduction in accountability in the managerial function. The study recommended that
financial report should be prepared by following the standards and disclose of financial reporting
information must be reasonable and reliable. Likewise, In addition, Akabom-Ita, Aneifiok and
Charles (2014) viewed a topic on accounting for influence of financial convention on revenue
utilization in local government areas. The study adopted is survey research design. As a result of
their findings they concluded that if there is higher level of execution of financial convention, there
will be effective and efficient financial management and control. There, they recommended that
the relevant authorities should ensure that the staffs are discipline while handling financial and
economic matter.
In line with the study of Acho and Abuh (2016) on corruption and accountability in the Nigerian
public sector, it was reported that allocations of resources in the public service are not adequately
utilized. They recommended that the offenders should be sanctioned and the government should
provide strict policies on the financial report. Also, Oyidi (2013) carried out a study on budget and
budgetary control for effective containment of corruption in the local government in Nigeria using
descriptive survey research design. The study used stratified random sampling technique. The
study made use of the primary source of data. From findings some problems militating against an
effective control were identified. He recommended that control measures should be adopted in the
public service to avoid deviation from budget priorities during implementation
According to the study of Igboyi, Nweze, Enekwe and Nze (2016) on the effect of probity and
accountability on the development in Nigeria, the result showed that there is no significant
relationship between probity and government effort to recover stolen fund. The study
recommended that country should check on the level of corruption and improve integrity. Ibietan
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(2013) studied the effect of corruption and public accountability in the Nigerian public sector and
recommended that those found guilty of the corrupt practices should be sanctioned and public
service audit committee should be restructured.
Olatunji (2015) examined several government policies inhibiting accountability in the public office
using least square regression analysis method. He concluded and recommended that a nation’s
development and growth is measured by public officer level of accountability. Bouvard, Pierre,
and Adolfo (2015) carried out a study on transparency in the financial system. Ex-post facto
research design was adopted for this study. The researcher concluded that transparency enhance
the stability of financial system during crises but has a destabilizing effect during normal economic
time. Likewise, Adejuwon (2014) studied a qualitative research on enhancing public accountability
and performance in Nigeria and concluded that unless good governance is in place with public
accountability carefully observed, effective public sector performance cannot be realized.
Methodology
This study is a field survey research; with the entire 49 staff of finance section of the three selected
local governments (Ikene, Iperu, and Shagamu) in Ogun State as the target population. 43 sample
subjects were selected randomly while stratified sampling technique was adopted in choosing the
respondents across the three local governments. Data were obtained through the administration of
structured questionnaire to the respondents. The research instrument was subjected to reliability
test to ensure consistency using Cronbach Alpha Reliability test with the result of 0.752 being
greater than the threshold of 0.70 reflected the reliability of the instrument.
The questionnaire structured into two sections. Section A entails the demographic attributes (sex,
age, marital status, qualification, working experience, position) while the Section B centered on
questions used in testing the effect of transparency and accountability on financial reporting 5-
likert scale was used in rating the responses with options of strongly agree (5), agree (4), undecided
(3), disagree (2), and strongly disagree (1).
Data obtained were presented using tables and percentages while Ordinary Least Square regression
analysis was used to determine degree of relationship between accountability and transparency of
financial reporting system in Nigeria. Ordinary Least Square Regression analysis was used as it is
adjudged the most appropriate statistical test for analyzing data obtained through primary source.
Model Specification
The study investigates accountability and transparency in financial reporting of the Nigerian public
service. Two variables are identified in this study (independent and dependent). The dependent
variable used in this study is financial reporting and the independent variable used is transparency
and accountability
Y = f(X)
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Where: Y = Dependent Variable and X = Independent Variable
Y = Financial Reporting System (FRS), and X = Accountability and Transparency
x1 =Accountability(ATB), x2 =Transparency(TPC)
Functional Relationship
FRS = f(ATB)……………………………………………….……… F1
FRS = f(TPC)……………………………………………….……… F2
The Models:
FINR = + β1TRANS + ------------------------------------------------------ (1)
FINR = + β2ACC + ---------------------------------------------------------- (2)
It is expected that there would be positive relationship between the dependent (financial reporting)
and independent variable (transparency and accountability); therefore, β1- 2 > 0 at confidence level
of 90%.
Analysis and Discussion of Findings
Demographic Analysis of the Respondents
Table 1 : Demographic Presentation of Respondents
Socio-Demography
Frequency (%)
Percent (%)
Gender:
Male
Female
Total
23
20
43
53.5
46.5
100
Age Group:
Under 20-30
31-40
40 and above
Total
15
17
11
43
34.9
39.5
25.6
100
Marital Status:
Single
Married
Divorced/separated
Total
15
25
3
43
34.9
58.1
7.0
100
Qualification:
WAEC/GCE
HND/BSC
MSC/PHD
Total
5
21
17
43
11.6
48.8
39.5
100
Position:
Manager
Accountant
13
16
30.2
37.2
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Auditor
Cashier
Total
8
6
43
18.6
14.0
100
Source: Field Survey (2019)
The result in Table 1 shows that out of 43 filled questionnaires, 53.5% are male, 46.5% are female.
Also, 34.9% of the respondents are between 20-30 years, 34.9% are between 31-40, 25.6.3% are
above 40 years. Furthermore, 34.9% respondent are single, 58.1% are married while 7,0% are
divorced/separated. Education backgrounds of the respondents show that 11.6% are WAEC/GCE
holders, 48.8% are HND/B.Sc. holders, and 39.5% are M.Sc./PhD holders. From the table also,
32.6% of the respondents have 0-5 years working experience, 27.9% have 6-10 years working
experience, 25.6% have 11-15 years working experience and, 14% have above 15 years working
experience. In terms of position, 30.2% are managers, 37.2% are accountant, 18.6% are auditors
and finally, 14% are cashiers.
Empirical Analysis
Test of Hypothesis One (H01)
Hypothesis One: Transparency does not significantly influence financial reporting system of the
Nigerian public service.
Table 2: Analysis of Responses to Questions on Objective One
SA
A
UD
D
SD
Variables
Transparency is all about timely release of reliable
information
62.8%
27.9%
2.3%
7%
0
Transparency is essential in decision making process
62.8%
30.2%
7%
0
0
Transparency is an instrument for public examination
55.8%
30.2%
9.3%
4.7%
0
Lack of transparency can result to public fraud
41.9%
39.5%
9.3%
4.7%
4.7%
Excessive transparency will lead to an increase in
financial reporting quality.
51.2%
37.2%
9.3%
2.3%
0
Proper and timely documentation can lead to reliable
financial report
44.4%
38.3%
8.1%
44.2%
6%
Nondisclosure of information as a result of protecting
the government reputation hinders the institution from
being transparent
18.8%
27.9%
25.6%
23.3%
4.7%
A transparent report shows that there could be reliance
in the public service financial report
53.5%
32.6%
7%
7%
0
Source: Researcher’s Field Work (2019)
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From result in Table 2, 62.8% strongly agree, 27.9% agree, 2.3% undecided and 7% disagree that
Transparency is all about timely release of reliable information. Also, 62.8% strongly agree, 30.2%
agree and 7% undecided that Transparency is essential in decision making process. 55.8% strongly
agree, 30.2% agree, 9.3% undecided and 4.7% disagree that Transparency is an instrument for
public examination. 41.9% strongly agree, 39.5% agree, 9.3% undecided, 4.7% disagree and 4.7%
strongly disagree that Lack of transparency can result to public fraud. Furthermore, 51.2% strongly
agree, 37.2% agree, 9.3% undecided, and 2.3% disagree that Excessive transparency will lead to
an increase in financial reporting quality. 14% strongly agree 9.3% agree, 18.6% undecided, 44.2%
disagree and 6% strongly disagree that Proper and timely documentation can lead to unreliable
financial report. In the same way, 18.8% strongly agree, 27.9% agree, 25.6% undecided, 23.3%
disagree and 4.7% strongly disagree that Nondisclosure of information as a result of protecting the
government reputation does not hinder the institution from being transparent. 18.6% strongly
agree, 30.2% agree, 25.6% undecided, 16.3% disagree and 9.3% strongly disagree that wastage in
public service funds does not disclosed transparency. 30.2% strongly agree, 20.9% agree, 25.6%
undecided, 16.3% disagree and 7% strongly disagree that bribes collected and disclosed show a
little bit of transparency in the public service. Finally, 53.5% strongly agree, 32.6% agree, 7%
undecided, and 7% disagree that a transparent report shows that there could be reliance in the
public service financial report
Table 3: Regression Estimate (Transparency)
Variable
MODEL 1
Coefficient
Std. Error
t-Stat
Prob.
C
1.403
.177
7.927
.000
Transparency
0.148
.085
1.741
.086
R2
0.431
Source: Researchers’ Computation (2019)
Model one:
FINR = + β1TRANS +
From the result in Table 3 above, the probability level is 0.86 and this is greater than 0.05.
Therefore, the null hypothesis should be accepted. This implies that there is no any significant
relationship between transparence and financial report in Nigeria public service and that the
relationship is positive as coefficient sign is positive. The value for R² which is 0.031 implies that
transparence can only account for 3% variation in financial report while 97% will be accounted by
other factors that are not included in the model
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4.3.2 Test of Hypothesis Two (H02)
Hypothesis Two: Accountability does not significantly influence financial reporting system of the
Nigerian public service.
Table 4: Analysis of Responses to Questions on Objective Two
Variables
SA
A
UD
D
SD
1
Accountability means being answerable to your
actions
69.8%
18.6%
7%
4.7%
0
2
Accountability connotes independence
53.5%
34.9%
7%
4.7%
0
3
Abnormal increase in accountability level depicts a
fraud free local government institution
18.6%
27.9%
39.5%
9.3%
4.7%
4
Accountability in the public sector connotes increase
in investors of the business
41.9%
37.2%
14%
4.7%
2.3%
5
The body that ensures accountability in the public
service are effective and efficient
37.2%
37.2%
9.3%
11.6%
4.7%
6
A lawless government institution promotes
accountability level
16.3%
14%
18.6%
30.2%
20.9%
7
External and internal control is very effective in the
public service
41.9%
27.9%
9.3%
18.6%
2.3%
8
Misappropriation of public fund has a positive effect
in public service accountability.
32.6%
23.3%
11.6%
16.3%
16.3%
9
Theft of fund not recorded in the financial statement
reduces accountability in public report.
39.5%
30.2%
14%
14%
2.3%
10
Compliance of the financial report with public
accounting standard depicts accountability
41.9%
32.6%
18.6%
7%
0
11
Public accountability if properly done could improve
or increase the number of investors in the public
service
44.2%
39.5%
11.6%
2.3%
2.3%
12
Government financial reports are to be disclosed to the
public without delay at an agreed time
46.5%
32.6%
11.6%
7%
2.3%
13
Accountability depicts increase in credibility level in
the Nigerian public service
48.8%
30.2%
18.6%
2.3%
0
14
Poor level of transparency of the government poses a
threat on its accountability of financial report.
55.8%
23.3%
11.6%
4.7%
4.7%
Source: Researchers’ Field Work (2019)
From the Table 4 above, 69.8% strongly agree, 18.6% agree, 7% undecided, 4.7% disagree that
accountability means being answerable to your actions. 53.5% strongly agree, 34.9% agree, 7%
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undecided, and 4.7% disagree that accountability connotes independence. Also, 18.6% strongly
agree, 27% agree, 39.5% undecided, 9.3% disagree and 4.7% strongly disagree that abnormal
increase in accountability level depicts a fraud free local government institution. 41.9% strongly
agree, 37.2% agree, 14% undecided, and 4.7% disagree that accountability in the public sector
connotes increase in investors of the business. 37.2% strongly agree, 37.2% agree, 9.3%
undecided, 11.6% disagree and 4.7% strongly disagree that the body that ensures accountability in
the public service are effective and efficient. 16.3% strongly agree, 14% agree, 18.6% undecided,
30.2% disagree and 20.9% strongly disagree that a lawless government institution promotes
accountability level. 41.9% strongly agree, 27.9% agree, 9.3% undecided, 18.6% disagree and
2.3% strongly disagree that external and internal control is very effective in the public service.
32.6% strongly agree, 23.3% agree, 11.6% undecided, and 16.3% disagree that misappropriation
of public fund has a positive effect in public service accountability. 39.5% strongly agree, 30.2
agree, 14% undecided, 14% disagree, and 2.3% strongly disagree that theft of fund not recorded
in the financial statement reduces accountability in public report. 41.9% strongly agree, 32.6%
agree, 18.6% undecided, and 7% disagree that compliance of the financial report with public
accounting standard depicts accountability. Furthermore, 44.2% strongly agree, 39.5% agree,
11.6% undecided, 2.3% disagree and 2.3% strongly disagree that public accountability if properly
done could improve or increase the number of investors in the public service. 46.5% strongly
agree, 32.6% agree, 11.6% undecided, 7% disagree and 2.3% strongly disagree that government
financial reports are to be disclosed to the public without delay at an agreed time. 48.8% strongly
agree, 30.2% agree, 18.6% undecided, and 2.3% disagree that accountability depicts increase in
credibility level in the Nigerian public service. Finally, 55.8% strongly agree, 23.3% agree, 11.6%
undecided, 4.7% disagree and 4.7% strongly disagree that poor level of transparency of the
government poses a threat on its accountability of financial report
Table 5: Regression Estimate (Accountability)
Variable
MODEL 1
Coefficient
Std. Error
t-Stat
Prob.
C
1.2243
0.147
8.296
0.000
Accountability
0.265
0.076
3.482
0.001
R2
0.314
Source: Researchers’ Computation (2017)
Model Two:
FINR = + β2ACC +
From the Table 5, the result, at 5% significant level, the null hypothesis is rejected. This is because,
the probability level which is 0.01 is less than 0.05. The rejection of null hypothesis implies that
there is a positive significant relationship between accountability and financial report in Nigeria
public service. The coefficient of the variable which is 0.0265 implies that if accountability is
Islamic University Multidisciplinary Journal IUMI Vol. 6(3), 64-83, 2019
ISSN: 2617-6513 (Online), ISSN: 2409-0263 (Print) http://www.iuiu.ac.ug
75
increased by a percentage, financial report system will increase by 2.65%. The value of R² which
is 0.311 implies that 31.1% variations in financial report system is accounted by accountability.
Discussion of Findings
Most public officers are corrupt and failed to render accounts of their stewardship, some of the
government agencies established to enhance public accountability were not effective and their
performances are not satisfactory, hence, they failed to meet the public expectation. Similarly,
Okere and Ogundana (2019); Osho and Afolabi (2014) in their study, there was no significance
improvement in accountability due to the application of management strategies in government
sectors in Nigeria. The findings revealed that effective and efficient application of financial control
systems and management strategies to accountability in public sectors will enable remedial actions
to be taken as variance sets in.
Conclusion and Recommendations
The objective of this study is basically to find the effect of transparence and accountability on
financial report system in Nigeria public service. The regression result shows that there is a positive
relationship between transparence and accountability on financial report system. However, only
accountability has a significant effect on financial report system in Nigeria public service. This
implies that an increase in accountability will lead to a stronger financial report system in Nigeria
public service.
After the evaluation of transparency and accountability in financial reporting of the Nigerian public
service and the assessment of the negative effect of lack of transparency and accountability in the
financial reporting system, it has been discovered that if this situation is not well taken care of it
will endanger the rapid development of government resources or public funds.
The following recommendations are made to reduce lack of transparency and accountability in the
financial reporting system:
Government should introduce an audit committee independent of the local government ministry
or those in charge of the ministry to ensure that the report depicts an error free and corruption free
financial reporting system in the Nigerian public service. Government should establish a special
commission charged with the responsibility of ensuring that the ministries and extra-ministerial
departments are well monitored to ensure transparency and proper accountability; thus, reducing
complaints such as: collection of bribes, payment of salaries to ghost workers, and inefficiency
of public office holders. Also, strict compliance to all rules and regulations, procedures and plans
regarding public budgeting and reporting practices in order to attain the goals of public sector in
Nigeria should be enforced.
Islamic University Multidisciplinary Journal IUMI Vol. 6(3), 64-83, 2019
ISSN: 2617-6513 (Online), ISSN: 2409-0263 (Print) http://www.iuiu.ac.ug
76
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