The Effect of Financial Regulations on Fiscal Management in Nigeria

Abstract

This study investigated the effects of financial regulations on fiscal management in Nigeria. The motivation is the claim that nonconformity with applicable financial regulations by public officers is the major factor in the current precarious fiscal position of the country. With the revised 2009 financial regulations and other extant acts, the researcher obtained data through personal interviews with 172 career public servants and political office holders in government ministries, departments and agencies using the ex-post facto research design. Parametric tests comprising mean score, standard deviation and Z-test are used to analyze data. From the results, public servants, particularly political office holders pay inadequate attention to financial regulations in their official duties: public funds are appropriated with impunity, contracting and procurement procedures are largely circumvented, internal audit functions of checks and balances are undermined, while the use of accounting manual appears relatively
unpopular. Based on the findings, it is recommended that governments at all
tiers be pragmatic in the monitoring and evaluation of fiscal operations, and
cases of breaches of regulations and established procedures be thoroughly and fairly investigated and appropriate punishment meted on culprits to serve as deterrent to others.