CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The implementation of self-accounting systems in the public sector is a critical aspect of financial management, with profound implications for the overall performance of governmental organizations. In the context of Nigeria, a country marked by diverse economic challenges and a history of public sector inefficiencies, understanding the effects of self-accounting systems becomes paramount. This introduction aims to delve into the impact of self-accounting systems on the performance of the public sector in Nigeria, shedding light on how these systems contribute to transparency, accountability, and efficiency. Adebisi, J. F., & Iyiola, O. O. (2019).
One key aspect to consider is the role of self-accounting systems in fostering transparency within public sector organizations. Transparency is a fundamental element in ensuring the responsible use of public funds and resources. As self-accounting systems empower governmental entities to maintain their financial records independently, the potential for discrepancies and mismanagement is reduced, leading to enhanced transparency. This, in turn, can contribute to building public trust and confidence in the government's financial operations. Adegbie, F. F., & Fakile, A. S. (2017).
Moreover, the adoption of self-accounting systems can significantly enhance accountability in the public sector. With a decentralized approach to financial management, individual departments or units can be held responsible for their financial decisions and outcomes. This accountability can serve as a catalyst for improved fiscal discipline, as public officials become more directly answerable for their financial stewardship. The accountability fostered by self-accounting systems has the potential to curb financial mismanagement and promote a culture of responsibility within the public sector in Nigeria. Ojo, A. T., & Afolabi, A. A. (2018).
While the potential benefits of self-accounting systems are evident, it is essential to consider the challenges and nuances associated with their implementation in the Nigerian context. Factors such as the capacity of public sector staff, technological infrastructure, and the regulatory framework play crucial roles in determining the success of self-accounting systems. Understanding these challenges is vital for crafting effective policies and strategies to maximize the positive impact of self-accounting on the performance of the public sector in Nigeria. Izedonmi, P. F., & Ijewereme, O. B. (2020).Top of Form
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1.2 Statement of the Problem
The implementation of self-accounting systems in the public sector in Nigeria raises a series of challenges that necessitate a thorough examination. One significant issue pertains to the capacity and readiness of public sector entities to adopt and effectively utilize self-accounting systems. Nigeria faces a diverse landscape with varying levels of technological infrastructure and workforce expertise across different governmental units. As these systems often require a certain level of technological proficiency, the lack of uniform technological readiness may hinder the seamless integration of self-accounting practices, potentially leading to operational inefficiencies, errors, and difficulties in data management. Understanding the extent to which the existing technological and human resource infrastructure supports the adoption of self-accounting systems is crucial in identifying potential barriers and devising targeted solutions. Adebisi, J. F., & Iyiola, O. O. (2019).
Additionally, the regulatory framework governing public sector accounting in Nigeria poses a significant challenge. The country has experienced shifts in accounting standards and regulatory requirements over time. The coexistence of different accounting standards and frameworks, coupled with evolving regulatory policies, may create ambiguity and complexity in the implementation of self-accounting systems. Inconsistencies in compliance requirements and reporting standards can lead to confusion among public sector entities, impeding their ability to seamlessly transition to self-accounting practices. Thus, a comprehensive analysis of the regulatory environment is essential to identify areas requiring standardization and alignment, ensuring a conducive atmosphere for the successful implementation of self-accounting systems in the Nigerian public sector. Adegbie, F. F., & Fakile, A. S. (2017).Top of Form
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1.3 Objectives of the Study
The main objective of the study is to examine Effect of self-accounting system on the performance of public sector in Nigeria. Specific objectives of the study are:
- 1. To assess the impact of self-accounting systems on financial transparency and accountability in the Nigerian public sector.
- 2. To evaluate the influence of self-accounting systems on efficiency and effectiveness of resource allocation in the Nigerian public sector.
- To examine the factors influencing the successful implementation and utilization of self-accounting systems in the Nigerian public sector.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- To what extent has the implementation of self-accounting systems improved the clarity and accessibility of financial information in public sector institutions?
- How has the adoption of self-accounting systems impacted the decision-making processes regarding resource allocation within public institutions?
- What are the key challenges and obstacles faced in implementing and maintaining effective self-accounting systems in public institutions?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between self-accounting system and performance of public sector in Nigeria.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Accounting sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to Federal Pay Office, Makurdi. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
REFERENCES
Adebisi, J. F., & Iyiola, O. O. (2019). Public sector accounting and financial management in Nigeria: Issues, challenges, and reforms. Journal of Accounting and Finance, 19(6), 88-99.
Adegbie, F. F., & Fakile, A. S. (2017). The impact of accounting information on the decision-making process of small and medium enterprises in Nigeria. International Journal of Accounting Research, 4(1), 23-32.
Ojo, A. T., & Afolabi, A. A. (2018). Adoption of International Public Sector Accounting Standards in Nigeria: Challenges and Prospects. Journal of Accounting and Financial Management, 4(2), 45-55.
Izedonmi, P. F., & Ijewereme, O. B. (2020). The role of technology in enhancing financial accountability in the Nigerian public sector. International Journal of Research in Business and Social Science, 9(3), 12-25.
Anyanwu, C. M., & Igwe, I. N. (2016). Public sector accounting in Nigeria: A historical perspective. Journal of Finance and Accounting, 4(2), 37-45.
