ROLE OF AUDIT, BUDGET COMPLIANCE, AND FINANCIAL REPORTING IN DRIVING FINANCIAL ACCOUNTABILITY IN NIGERIA’S PUBLIC SECTORS

This study explores the role of audit, budget compliance, and financial reporting in driving financial accountability in Nigeria’s public sector, focusing on how these core financial accountability mechanisms influence overall government performance. Despite ongoing fiscal reforms, persistent inefficiencies in Nigeria’s public sector call into question the effectiveness of audit practices, budgetary discipline, and financial reporting systems.

The research employed a descriptive survey design and collected data from management-level personnel across selected Ministries, Departments, and Agencies (MDAs) within the Federal Capital Territory, Abuja. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study analyzed the relationships between the independent variables (audit practices, budget compliance, and financial reporting quality) and the dependent variable (financial accountability).

Results show that while budget compliance has a strong, positive, and significant effect on public accountability, audit practices exhibit no significant influence, and financial reporting quality reveals a statistically significant but negative relationship. These findings suggest that, although adherence to budget implementation significantly drives accountability, existing audit and reporting mechanisms may lack the effectiveness or institutional support needed to translate into meaningful accountability outcomes.

The study concludes that reforms in audit enforcement, strategic use of financial reporting, and enhanced budget compliance are crucial for improving accountability within Nigeria’s public sector. Policy recommendations are made to guide public sector managers and stakeholders, while future research is encouraged to examine these dynamics in sector-specific contexts.