Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

The Nigerian Naval Financial Accountability Advancement Model (NFAAM): Strengthening Internal Audits and Oversight Mechanisms

Osuolale Ayotunde Eyitayo

Abstract

This study introduces the Nigerian Naval Financial Accountability Advancement Model (NFAAM), a comprehensive auditing and monitoring framework designed to strengthen financial governance within the Nigerian Navy. Addressing critical weaknesses in internal audits, oversight mechanisms, and compliance processes, the model integrates principles of independence, risk-based auditing, transparency, and capacity development to mitigate financial inefficiencies and prevent leakages. Key components include integrated audit units, centralized monitoring databases, automated compliance tools, and dynamic risk assessment modules, all aimed at enhancing real-time financial oversight and accountability. A phased implementation roadmap emphasizes policy reform, targeted training, and stakeholder collaboration to ensure sustainable institutional embedding. The NFAAM framework offers strategic benefits by improving fiscal discipline, reinforcing operational readiness, and fostering a culture of transparency within naval financial management. Policy and leadership recommendations highlight the need for committed governance reforms, capacity enhancement, and multi-stakeholder engagement. Ultimately, this model provides a practical and scalable solution to advance financial accountability, optimize resource utilization, and support the Nigerian Navy’s strategic defense objectives.

Keywords

Nigerian Navyfinancial accountabilityinternal auditoversight mechanismsrisk-

References

[1] S. ADELANI and M. UKWENI, "Governance and defense sector management in Nigeria: X-raying legislative oversight of the defense sector," 2024. [2] U. Agburuga, "Leadership accountability, budget and financial management performance and national security," Nigerian Academy of Management Journal, vol. 14, no. 1, pp. 73-79, 2019. [3] O. Okenyodo, "Governance, Accountability, and Security in Nigeria," Africa Security Briefs, no. 31, 2016. [4] T. F. Abiodun, A. A. Asaolu, and A. I. Ndubuisi, "Defence Budget and Military Spending on War Against Terror and Insecurity in Nigeria: Implications for State Politics Economy and National Security," Journal DOI, vol. 6, no. 7, pp. 344-351, [5] S. O. Okai, "Budgeting and Budgetary Control and Organisational Performance of Public Institutions In Ghana: a Case Study of Ghana Maritime Authority," University of Cape Coast, 2021. [6] S. A. Sule and M. Mulyanto, "Comparative Analysis of Budget Performance in Nigeria: Pre and Post-Covid-19 Impact," The Es Accounting And Finance, vol. 2, no. 02, pp. 87- 106, 2024. [7] M. Volosiuk, O. Kharytonov, V. Kotsur, G. Monastyrskyi, and O. Ovsianiuk- Berdadina, "Managing economic operations in the face of military and political turmoil: evaluating the public sector's role," Multidisciplinary Science Journal, vol. 6, 2024. [8] I. El Bechychy and A. Allioui, "Financial Integrity: An In-Depth Exploration of Internal Control and Audit Triumphs in Fostering Resilient Business Strategies," SCIENTIA, vol. 118, 2024. [9] H. McGivern, "Navy Agency Financial Reports: An Internal Control Analysis," Acquisition Research Program, 2024. [10] K. Roy, K. K. Maramraj, S. Kumar, A. Sarin, and M. S. Honwad, "Optimizing Quality Assurance in Naval Hospitals: A Qualitative Study by Comprehensive Strength, Weakness, Opportunity, and Threat Analysis," Journal of Marine Medical Society, p. 10.4103, 2025. [11] C. Santiso, "Why budget accountability fails? The elusive links between parliaments and audit agencies in the oversight of the budget," Revista de Economia Política, vol. 35, no. 3, pp. 601-621, 2015. [12] R. Sari and M. Muslim, "Accountability and Transparency in Public Sector Accounting: A Systematic Review," Amkop Management Accounting Review (AMAR), vol. 3, no. 2, pp. 90-106, 2023. [13] A. K. Kankpang and J. E. Nkiri, "Administration, accountability and transparency in public sector organisations: a conceptual overview," Accounting and taxation review, vol. 3, no. 4, pp. 1-14, 2019. [14] D. Yuliia, "Transparency and accountability of information of the defense budget," Nord universitet, 2022. [15] J. B. McKinney, "Effective financial management in public and nonprofit agencies," [16] O. R. Udoh, "Enhancing Internal Audit Efficiency for Effective Risk Management and Corporate Governance Frameworks." [17] M. S. Malik, "Financial statement analysis, internal controls, and audit readiness: Best practices for Pakistan Army financial management officers," Monterey, California: Naval Postgraduate School, 2017. [18] K. Akinsola, "Regulatory Compliance and the Role of Corporate Governance in Preventing Financial Misstatements," Available at SSRN 5126627, 2025. [19] P. Boufounou, N. Eriotis, T. Kounadeas, P. Argyropoulos, and J. Poulopoulos, "Enhancing internal control mechanisms in local government organizations: a crucial step towards mitigating corruption and ensuring economic development," Economies, vol. 12, no. 4, p. 78, 2024. [20] T. O. Soetan and E. Mogaji, "Regulating Financial Services in Nigeria: Oversight Agencies, Chartered Bodies, and Professional Associations," in Financial Services in Nigeria: The Path Towards Financial Inclusion, Economic Development and Sustainable Growth: Springer, 2024, pp. 129-162. [21] A. Mohammed, A. Buba, and U. O. Ahmed, "Effect of Financial Regulations on Accountability of Some Selected Public Organizations in Nigeria," FUDMA Journal of Accounting and Finance Research [FUJAFR], vol. 1, no. 1, pp. 157-174, 2023. [22] F. O. Iyoha and D. Oyerinde, "Accounting infrastructure and accountability in the management of public expenditure in developing countries: A focus on Nigeria," Critical perspectives on Accounting, vol. 21, no. 5, pp. 361-373, 2010. [23] K. C. Amah, "Forensic Auditing and Productivity of Nigeria Civil Service," Federal University Otuoke Library, 2018. [24] B. Adejumo, "The Internal Audit Function as a Corporate Governance Mechanism in a Developing Economy: An Empirical Study of the Nigerian Financial Sector," 2019. [25] E. Alagbe and S. Yinus, "Audit Independence and Effectiveness of Internal Control Systems: Experience from Selected Southwestern Universities as a Reflection of Nigeria Public Sector Practices." [26] C. N. Oguonu, "Internal Control System and the Performance of Public Organizations in Nigeria: Exploring the Challenges and Prospects." [27] J. A. Momodu, "The Nigerian Army and internal security operations in the fourth republic," Internal security management in Nigeria: Perspectives, challenges and lessons, pp. 399-440, 2019. [28] D. Yates, Bureaucratic democracy: The search for democracy and efficiency in American government. Harvard University Press, 1982. [29] F. R. Davis, "An examination of the interrelationship between the structure of financial management and the internal audit function within the Department of Defense," 1986. [30] D. H. Downey and J. C. Bedard, "Coordination and communication challenges in global group audits," Auditing: A Journal of Practice & Theory, vol. 38, no. 1, pp. 123-147, [31] E. O. Ibekwe, "Mapping the Illicit Car Trade in Nigeria: Implications for the Political Economy of Nigeria," University of Surrey, 2022. [32] J. Raidt and K. E. Smith, Advancing US, African, and global interests: Security and stability in the West African maritime domain. Atlantic Council., 2010. [33] A. Fung, M. Graham, and D. Weil, Full disclosure: The perils and promise of transparency. Cambridge University Press, 2007. [34] D. N. Abdulai, Corruption and economic growth in Africa: The impact on development. Taylor & Francis, 2023. [35] A. M. Asiri, "Corruption and Transnational Organized Crime in the Middle East and North Africa," St. Thomas University, 2024. [36] S. Emasu and C. C. M. N. Sangaré, "Good Financial Governance of Security and Defence Institutions." [37] M. Ayogu, "Fostering transparency and accountability enhancing statutory audits in Nigeria," Journal of business and economic options, vol. 6, no. 1, pp. 37-44, 2023. [38] F. Shaheen, M. Rashed Khan, and F. Middlebrough, "Corporate Sustainability Audits: Enhancing Transparency and Accountability in Financial Reporting," Review Article E Environmental and Earth Sciences, vol. 12, no. 02, 2024. [39] W. Sulu-Gambari, A. Stafford, and P. Stapleton, "Public accountability reform in a Nigerian ministry," Qualitative Research in Accounting & Management, vol. 15, no. 4, pp. 485-509, 2018. [40] G. OSTENSEN and S. Brady, "Capacity building for the Nigerian Navy: eyes wide shut on corruption," U4 Anti-Corruption Resource Centre, U4, no. 2018, p. 4, 2018. [41] M. Y. Alkali and M. I. Imam, "Accountability and environmental sustainability: Nigerian maritime experience," Asian Journal of Economics and Empirical Research, vol. 3, no. 1, pp. 1-5, 2016.

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT

Cashflow Management and the Performance of Commercial Banks in Nigeria

Author: Jeffrey Ayas Iyakonbogha, Clement E. Ozele

The Nigerian Code of Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria

Author: i, Eneaniofu Daniel Mmaduakonam, ii, Azolike Nkiru Nkechi, iii, Emeter Patrick Okechukwu, iv, Okwor Emmanuel Ejimnkonye