Effect of Human Resource Accounting on Public Sector Performance: A Study of NNPC Exploration and Production Limited

Idris; Yusuf1; Adedipe Oluwaseyi Ayodele Ph.D

doi:10.56201/jafm.vol.12.no7.2026.p358.364

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Effect of Human Resource Accounting on Public Sector Performance: A Study of NNPC Exploration and Production Limited

Idris, Yusuf1, Adedipe Oluwaseyi Ayodele Ph.D

Abstract

This research analyzed how human resource accounting affects public sector performance of NNPC Exploration and Production Limited (NNPC E&P Ltd) in Benin City, Nigeria. This study analyzed the impact of human resource cost accounting on service delivery, the impact of human resource investment and capitalization on operational efficiency, the impact of human resource value disclosure on accountability, and the impact of human resource asset valuation on organizational effectiveness. This study analyzed the combined impact of the four practices on public sector performance. Guided by the Human Capital Theory and Lev and Schwartz (1971) human capital valuation model, the study was descriptive in nature. Using Yamane’s formula, a sample of 300 management and senior staff was drawn using proportional stratified random sampling. Data was collected using a structured five-point Likert scaled questionnaire. The first four research questions were addressed using simple linear regression, while the last research question was addressed using multivariate analysis of covariance (MANCOVA). The study results showed that human resource accounting practice cost accounting, practice of human resource investment and capitalization, practice of human resource value disclosure, practice of human resource asset valuation, all have a positive and significant impact on service delivery, operational efficiency, accountability, and organizational effectiveness, respectively. The MANCOVA identified a highly significant joint effect (all p < 0.001), composite regression estimated 28.8% of the variance in overall performance and practice of human resource value disclosure, while the most impactful practice was human resource accounting. The findings of the study suggested that human resource accounting has a considerable impact on the performance of the public sector. It was also suggested that NNPC E&P Ltd should formalize the practice of human resource accounting and should focus on human capital disclosures and valuation in accordance with IPSAS.

Keywords

Human resource accountingHuman CapitalPublic Sector PerformanceDisclosureNigeria JAFM JAFM =

References

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Effect of Human Resource Accounting on Public Sector Performance: A Study of NNPC Exploration and Production Limited

Abstract

Keywords

References

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