IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 9 2024
DOI: 10.56201/jafm.v10.no9.2024.pg157.169

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Federal Government Financial Reforms and Economic Growth of Nigeria

Uchime Helen Nkem and Onuorah Joshua J.K

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Abstract

Given the historical challenges of inefficient management in Nigeria's public sector, including corruption, lack of transparency, and poor service delivery, which have negatively impacted on the country's economic growth and the effectiveness of Federal government response through financial reforms initiatives. However, what has been the impact of these reforms on Nigeria's economic growth? This study examines the effects of Federal Government financial reforms on Nigeria’s economic growth from 2012 to 2023. A descriptive design was employed, testing three hypotheses at a 0.05 significance level. The findings indicate that the three public sector reform initiatives—namely the Treasury Single Account, the Integrated Payroll and Personnel Information System, and the Government Integrated Financial Management Information System have positive and significant impact on Nigeria's economic growth. Based on these results, we recommend that the to ensure alignment with best practices, the Federal Government should regularly review the implementation of public sector reform policies. Establish a strong external audit mechanism, in addition to mandatory audits, to improve oversight of the institutions responsible for these reforms. Additionally, enforcing these policies at all government levels will help reduce personnel costs, ensuring that compensation is directed only to active workforce members and freeing up more resources for capital development projects.

keywords:

Treasury Single Account, Integrated Payroll and Personnel Information System,

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