Financial Management in the Nigerian Public Sector: An Exploratory Study of Local Government Administration Experience

Abstract

The need to entrench, strengthen and sustain a sound accounting and financial management control in public sector has received considerable attention in Nigeria’s latest change agenda polity. This innovativeness became a formidable strategy for candidates who campaigned and aspired for various leadership positions during the concluded nations general elections. Hitherto, frequent financial and administrative abuses have become phenomenal in Nigerian public sector. It is the objective of the study to appraise the effectiveness and efficiency of financial management process in the Nigerian public sector which, borders on the Anambra State Local Government system experience. The methodology for the search is a survey design. The data were generated from both primary and secondary sources and analyzed using percentage and descriptive statistics. Three metropolitan towns of Awka, Nnewi and Onitsha were selected from the three, senatorial districts (Anambra South Central and North) for the questionnaire distribution. The researcher adopts the theoretical foundation of financial accountability, management transparency and accountability. Three hypotheses were formulated and tested with the use of chi-square method of analysis. The results revealed that inadequate accounting records and books exist, outdated financial management policy framework, and ineffective management techniques pervade the system, absence of due process and good governance principles leading to corrupt practices abound. It was recommended that adequate records and books of account be kept and maintained, obsolete and inconsistent policy tools should be consistently reviewed while ensuring that the due process and all good governance principles are strengthened and sustained for effective financial management of public funds.