Project Materials

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Accountability is now of serious concern in many countries including Nigeria owing hugely to widespread public demands for transparency in governance and the global outcry against corruption. One of the critical problems dominating public sector management in Nigeria, as Addison (2010) rightly observed is lack of accountability and transparency.

One of the efforts in creating good governance can be done by utilizing the maximum government resources. Accountability is the liability assumed by all those who exercise authority where there has been responsibilities delegated; ultimately, a liability owed to all citizens by the government and subsequently, every government department and agency in addition to efficient and effective management of government components.

Governments are required to be responsive, participative and professional in carrying out basic tasks and functions for the sustainability of government. The need for information about the implementation of government is actually necessary to ensure public openness about how the process of making, implementation and results achieved by the government in every government activity.

Therefore, the principles of transparency, accountability, responsiveness, and professionalism in creating better governance conditions need to be applied consistently and continuously. Therefore, cooperation between the government, the public, and the private sector is required.

One of the important things of the existence of such cooperation is the availability of publicly accessible information, which demands the government’s role so great in maintaining public trust. Accountability is one of the steps that must be taken to maintain and increase public confidence in government performance.

Talking about accountability is defined as the ability to provide answers to higher authorities over the actions of a person/group of people to the wider community within an organization (Rasul, 2010). Accountability is a complex concept that is more difficult to achieve than eradicate corruption.

Therefore, accountability needs to be interpreted as a continuous, consistent and transparent process in creating better organizational conditions. Accountability in the context of public administration is always interesting to examine because the centre of government administration practice lies precisely in issues surrounding accountability (Frederickson, 2012).

In European countries, for example, accountability has long been a concern especially in relation to policy-making. Accountability is a concept that is constantly evolving and often used because it provides an image of transparency and trust for those who run it.

So, accountability can be interpreted as an evaluation activity of the implementation process of organizational performance to be accountable so that it becomes a feedback for organizational leadership in the future. In modern public administration, accountability is king, and measurable results are a necessity (Paterson; Graeme, 2011).

Accountability within government is thus a measure that is used to control the power invested onto elected government officials. Without accountability, what is left is a political structure that has absolute power to act without conscience or atonement.

Any discussion which focuses on responsibility within parliament reveals the varying levels of accountability and the difficulties in trying to describe power and responsibility within the Nigerian political system.

It is obvious that corruption remains unabated in Nigeria despite the purported efforts by successive administrations particularly since 1999 (when the country returned to democratic rule) to stamp it out by strengthening public accountability.

Usually, political leaders in Nigeria talk the talk but do not walk the walk as far as combating corruption is concerned – the management of the fight against corruption is still cosmetic. Perhaps democracy as a system of governance offers the best hope for entrenching and enhancing public accountability in a society.

This is because accountability is one of the basic norms of democratic rule. In this regard, Huges (2010) posited: It is accountability which is fundamental to a democratic system. Any acts of the government are supposed to be, in the final analysis, acts of the citizens themselves through their representatives.

The pursuit of the common interest requires a carefully designed structure of accountability that ensures for citizens the best efforts of those who act on their behalf. Since government functionaries who manage the public sector wield enormous public powers with potential for abuse, the challenge to tackle is how best to ensure that these officials are held accountable for their deeds.

Then, the question is how to determine precisely the concept of accountability. Appropriate understanding allows determining what aspects are taken into account to assess the accountability of the stakeholders.

Therefore, the first problem is the conceptual problem. Accountability is often used in a rather broad sense, for example, often equated with the concept of evaluation, but the essence of accountability is a concept that can be synchronized with responsiveness, responsibility, and effectiveness.

The next question is related to an analysis that includes a discussion of accountability. When translated from a simple definition, accountability is defined by a series of dimensions to describe the various relationships of accountability and their composition within different domains of governance.

1.2 STATEMENT OF PROBLEM

The world is changing rapidly, which presents challenges and opportunities for Nigeria and its public sector. Internationally, there are signs that people might be losing trust and confidence in their governments and democratic institutions.

Although the underlying causes of these challenges are complex, they highlight a gap between what an increasingly connected and informed public expects of the public sector and what the public sector is seen to provide. Public sector reforms and increased democratic space have given rise to greater demand for enhanced accountability practice in public service more than ever before.

Citizens now demand for fair treatment, efficient and effective service delivery, citizen engagement in policy making and more specifically, the observance of the rule of law. With this in mind, public servants and governmental institutions must re-look into how they serve the citizens and clients from the perspective of accountability for results and means as well.

World Bank report (unpublished) observes that accountability reporting has heavily leaned on accounting and auditing standards which presuppose that adequate records exit, are in good condition and are accessible.

The main focus of government accountability lies on the financial accountability practice. Furthermore, theory and practice have limited accountability to “an obligation of anyone handling resources or public office to report on the intended use of the resources of the designated office” (Fred Schenkelaars, unpublished).

This scope restricts accountability practice to resources only, especially financial resources. It seems that, although individuals are becoming more connected through, for example, social media, public sectors are becoming less connected with individuals.

The reasons for this gap might not necessarily be about how well the public sector delivers services (through the public management system) but about how well the public sector tells its story and assures the public that it is meeting the public’s expectations (through the public accountability system).

Understanding how public accountability supports public trust and confidence, even when the public sector is performing well, will be important for Nigerians and their public sector in the 21st century. The questions that beg for answers are:

who are the government accountable to? Whose interests do they serve? This study sought to answer these questions. This study therefore, set out to investigate the extent to which accountability practice was embraced in the public service and also lessons that could be used to strengthen accountability practice.

1.3 AIMS OF THE STUDY

The major purpose of this study is to examine how to make government accountable and responsible to the people. Other general objectives of the study are:

1. To examine whether accountability practice is evident in Nigeria.
2. To examine the problem of corruption and public accountability in Nigeria.
3. To examine the importance of financial transparency and accountability in Nigeria’s restoration.
4. To examine the role of public accountability in maintaining public trust and confidence.
5. To examine whether effective and efficient accounting system in public institutions can ensure accountability and transparency in the management of public funds.
6. To examine the role of the Financial Reporting Council of Nigeria in an evolving public accountability system

1.4 RESEARCH QUESTIONS

1. Is accountability practice evident in Nigerian system of government?
2. What are the problem of corruption and public accountability in Nigeria?
3. What is the importance of financial transparency and accountability in Nigeria’s restoration?
4. What is the role of public accountability in maintaining public trust and confidence?
5. Does effective and efficient accounting system in public institutions ensure accountability and transparency in the management of public funds?
6. What is the role of the Financial Reporting Council of Nigeria in an evolving public accountability system?

1.5 RESEARCH HYPOTHESIS

1. There is no significant role of public accountability in maintaining public trust and confidence.
2. There is a significant role of public accountability in maintaining public trust and confidence.

1.6 SIGNIFICANCE OF THE STUDY

This research work will enable the researcher to establish the possible factors causing improper accountability and transparency in financial management in the conduct of public sector in Nigeria. It is equally expected that, the research work will help to provide solution which will be applied in improving the stability in the public sector.

Consequently, the research findings may be important in addressing these gaps. The findings may also be of invaluable benefits to the management and those charged with public sector governance since they are bound to enable them streamline the systems of accountability and responsibility.

Ultimately, the findings are likely to ensure improved financial management and also attainment of the public sector objectives. The study may also add to the existing knowledge regarding accounting and financial management particularly in the public sector.

The findings of the study may be helpful to all academicians in finance and accounting, management, legal, and other pertinent fields. Finally, the study will generally be of immense importance to the readers on various agencies establishing by federal government in fighting corruption in Nigeria.

1.7    SCOPE OF THE STUDY 

The study is based on making government accountable and responsible to the people, case study of FRCN 1999-2019.

1.8 LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.#

1.8 DEFINITION OF TERMS

Public Sector: This is an area which belongs to the government which deals with the production, ownership, sale, provision, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local municipal.

Accounting policies: A summary of relevant accounting policies should accompany all reports. These should describe the basis of accounting applied (e.g. cash, accrual) in preparing the reports and disclose any deviations from generally accepted accounting practices.

Systems and responsibility: A dynamic system of internal financial controls, including internal audit, should be in place to assure the integrity of information provided in the reports.

Audit: The year-end report should be audited by the Supreme Audit Institution in accordance with generally accepted auditing practices.