SUCCESSES AND FAILURES OF PUBLIC SECTOR ACCOUNTABILITY IN NIGERIA FOR THE PERIOD 1991 – 2002

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

Every society is made up of individuals, who agree to come under one unit and to be governed as an entity for the society to function effectively, some individual must manage its affairs as it affects the society over all good, be it financial goal, social goal or political goal. Against this background of managing the affairs of the society funds must be raised and used to achieve some of the goal of the society. The funds must rest in the hands of the people’s representatives, to be administered in such a way that maximum social benefit to be achieved.

To the extent of the funds contributed by the individuals and entrusted in the hands of representatives, services will be provides by the use of funds. Eventually then, these representatives will not only keep custody of the funds, they will account to the people who contributed to the funds. This is based however, on the existing of full democratic system of government.

Back here in Nigeria when the public sector accounting did not develop to any meaningful extent, until the coming of the British accounting for the public funds has been posing a lot of problem since the past 1991-2002 era. It is unfortunate that all efforts by the government to encourage public sector accounting did not achieve the desired outcome of providing adequate information regarding the use of the public funds. Proper accountability should demand that, the extent of financial performance of any government for the period ruled by the government.

1.2 Statement Of Problems

The bone of the problem of the Nigerian public sector has been the improper accountability and management of the taxpayer’s money entrusted in the hands of their representatives. These representatives have rather to wealth amassment at the expenses of the taxpayers, when it was clear that little or no punishment was meted on them. They would rather be given titles as an encouragement for their fraudulent practices.

Consequently, there is poor rate of development and very poor standard of living of the average taxpayer. The researcher is therefore interested in increasing the awareness of the need for their trustees as their representative to properly account for the taxpayers fund.

1.3 Objective Of The Study

The cardinal objectives of the research work are: -

i. To find out to what extent, the public funds have been prudently utilized to maximize his welfare in Nigeria for the period of 1991-2002.

ii. To ascertain the taxpayers attitude towards tax payment.

iii. To create a general awareness on the part of the public funds to demand for an account from their representatives.

1.4 Research Question

(i) To what extent is accountability institution working in the    Nigerian public sector?

(ii) Does professional base of Accountants exist in terms of number and quality      that support public expenditure management in Nigeria?

(iii) To what extent has Nigeria government lost money due to lack of accountability?

(iv) Does public resources managers in Nigeria rendered a timely, adequate and reliable stewardships accounting?

(v) Are the electorate satisfied with the state of public infrastructure and services compared with the amount of resources so far invested in the country?

(vi) How effective and efficient is the audit process providing potential for establishing accountability and detection of corruption?

(vii) Do competent oversight bodies exist and functioning effectively in the public sector?

(viii) Does the accountability arrangement contribute to the availability of information about former and current administrative actions for the administrative body involved and a wider range of administrative bodies?

1.5 Significance Of The Study

This study through its findings will help to identify the possible factors attributable to improper accountability in financial management in the Nigerian public sector. It is equally expected that the study will provide relevant suggestions that will improve the stability, effectiveness, efficiency and service delivery of public sector in Nigeria.

The study will be of substantial benefits to accounting practitioners as it will help them improve on their routine work and as regard the effective management of the finances of their respective parastatals. Financial analysts will find this work invaluable as it serves as a basis for advising their clients on investment decisions.

Furthermore, this research work will propel the management of local government councils, state and federal ministries, agencies and departments to formulate policies that will enhance the process of accountability, transparency and probity in their operations. It will also assist various agencies established by the government in fighting corruption within their parastatals. Students will equally find this study as a guide in their future research undertakings on the subject matter.

1.6 Scope And Limitations Of The Study

This study examines the fiscal accountability dilemma in nigeria public sector: a warning model for economic retrogression in Nigeria by prioritizing on selected government parastatals. It will cover the Ministry of Finance, Presidency, Ministry of Works, and National Assembly.

The limitations encountered in the study are time constraint, cost constraint and unwillingness of respondents to provide the necessary data.

The time allotted to carry out this study is relatively short considering other academic engagements of the researcher. Due to paucity of funds, the study’s coverage was limited to only Ministry of Finance, Presidency, Ministry of Works, and National Assembly. Furthermore, the respondents, who are account officers in the selected offices were somehow unwilling to participate in the survey exercise. Nevertheless, a robust and fact-finding research is carried out.