Analysis of Effect of Public Sector Accounting on Financial Control Systems in Nigeria Local Governments

Authors: Lukuman Adewale JIMOH; Abdulrasaq Mustapha; Rotimi Adedayo Adedokun, Ph.D.,

Affiliation: Department of Accounting and Finance, Kwara State University, Malete. Nigeria

Corresponding Author: [email protected]

November 3, 2025

SIAR-Global Journal of Management & Business Review

DOI: 10.5281/zenodo.17515331

Analysis of Effect of Public Sector Accounting on Financial Control Systems in Nigeria Local Governments

Research Article Business

Abstract

The local government in Nigeria has faced a persistent challenge of financial control leading to the loss of billions of naira into the hands of public office holders. The trend has negatively affected local governments’ ability to fulfill their statutory responsibilities. Therefore, the main thrust of this study was to empirically examine the effect of public sector accounting on financial control system in local governments in Osun State—specifically Osogbo, Ife Central, and Iwo. In specific terms, the study investigated the extent to which public sector accounting, as measured by public sector audit, budgetary process, and procurement process affects financial control in local governments. The study population comprised 188 staff members of the three selected local governments, and random sampling techniques were employed. Data collected through questionnaires were analyzed using descriptive statistics and inferential regression analysis. The result of the findings indicated that public sector audit has a significant positive effect on financial control in Osogbo, Ife Central, and Iwo Local Governments, Osun State, Nigeria. This is shown by the following statistics: public sector audit was found to have as significant positive effect on financial control system in local government in the Osogbo, Ife Central and Iwo, Osun State, Nigeria. (β = 0.482, SE = 0.092, t = 5.269, p < .001). Budgetary control had no significant effect on financial control in the Osogbo, Ife Central, and Iwo Local Governments, Osun State, Nigeria (β = 0.121, SE = 0.082, t = 1.479, p = .132). Procurement process was found to have a significant positive effect on financial control in Osogbo, Ife Central and Iwo local government, Osun state. Nigeria (β = 0.279, SE = 0.079, t = 3.668, p < .001). The study therefore recommended that the government strengthen its audit practices, procedures, and mechanisms; it also recommends that future research should investigate why budgetary control fails to predict financial control; lastly the government should domesticate and enforce the Procurement Act across all local governments in the country.

Keywords

Procurements, Budgetary, Audit, Public and Local Government

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Lukuman Adewale JIMOH; Abdulrasaq Mustapha; Rotimi Adedayo Adedokun, Ph.D., (2025). Analysis of Effect of Public Sector Accounting on Financial Control Systems in Nigeria Local Governments. SIAR-Global Journal of Management & Business Review, Vol. 1, No. 1. DOI: 10.5281/zenodo.17515331

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Analysis of Effect of Public Sector Accounting on Financial Control Systems in Nigeria Local Governments

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