Forensic Accounting in Nigeria: A Critical Review of Its Role in Detecting and Preventing Financial Crimes

Abstract

This study examines the role of forensic accounting in detecting and preventing financial crimes in Nigeria, highlighting its effectiveness, challenges, and potential improvement strategies. The aim of the study is to critically assess how forensic accounting contributes to financial crime management and to identify barriers limiting its application within Nigerian public and private sectors. Guided by three specific objectives, the study seeks to: (i) critically examine the role of forensic accounting in detecting financial crimes, (ii) assess its effectiveness in preventing financial crimes, and identify challenges limiting its application and propose improvement strategies. A qualitative research design was adopted, relying exclusively on secondary data from peer-reviewed journals, books, reports, and institutional publications. Data were analyzed using thematic analysis, which enabled the identification of recurring patterns and themes in line with the study objectives. Findings reveal that forensic accounting significantly enhances fraud detection, particularly through investigative audits, litigation support, and analytical procedures. Its preventive capacity, however, is moderate, largely due to reactive application, weak internal controls, and limited institutional integration. Key challenges identified include insufficient professional expertise, weak regulatory frameworks, technological limitations, and institutional inefficiencies. The study concludes that proactive institutionalization of forensic accounting, capacity building, regulatory strengthening, and technological integration are essential to maximize its impact on financial transparency, accountability, and crime prevention in Nigeria. The findings provide insights for policymakers, financial institutions, and anti-corruption agencies seeking to enhance forensic accounting practices and reduce financial crimes.

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