Success and Failures of Public Sector Accountability in Nigeria for the Period of 2005-2010
Chapter One
OBJECTIVES OF THE STUDY
The cardinal objectives of the research work are:
- To find out to what extent, the public funds have been prudently utilized to maximize his welfare in Nigeria for the period 2005-2010.
- To ascertain the taxpayers attitude towards tax payment
- To create a general awareness on the part of the public funds to demand for an account from their representatives.
- To recommend ways of providing the public sector accountability now and also on future.
CHAPTER TWO
LITERATURE REVIEW
BACKGROUND OF NIGERIAN PUBLIC SECTOR
The concept of public sector was established as a result of the colonial effort of the European in Africa. Before the coming of the Europeans, the major occupation of Africans were agriculture and fishing. There was nothing like civil service in existence.
The Nigerian public sector was designed in a such a way that Nigerians were used to achieve the exploitative goals of the Europeans. The British colonialists established coal mines, rail ways and motorways principally to exploit Africa in general and Nigeria in particular. The coal deposits were minded ways and wholly exported for use in Europe. The railway was used as means of transporting coal and other raw materials to the coast where it was carted away by their sea vessels.
Africans, being uneducated and unexposed were deceived into putting on ties and rickety British dressers and then working as civil servants. The salaries were poor and were nothing to write home about. The Africans was then given basic education to enable them read and write. This was very necessary in achieving the much desired exploitation of Africa civil service rules was principally tailored towards meeting their devilish goal and lacked Nigerian background in its totality.
Accounting in the public sector was tailored towards meeting the desires of the queen of England. Nigerians have no place in the management elves of the civil services and so did not know anything about the public sector accounting in question.
We must at this junction, praise God that some Nigerians as a result of education and exposure rose to challenge this ugly tendencies people like Dr. Nnamdi Azikiwe, Herbert Macauley, Akintola Williams and Obafemi Awolowo are worthy of praise for their endless struggle to establish dignity to Africans later in 1960, Nigeria regained total independence from and established their own civil services structure with its accounting machinery’s.
The public sector was then divided into:
- Federal government department
- State government department
- Local government department
- Nationalized industries
- Public bodies, agencies and funds
Each of these arm of public sector have their own system of accounting that suits the purpose of establishing it.
SOURCES OF PUBLIC FUNDS
The sources that are managed by any government in power normally derived from four sources:
- Taxation
- Issue of debts securities
- Grants
- Currency creation is stated by Nwankwo Basil
Public sector accounting in Nigeria 1986 Enugu. Taxation was defined by A.K. Aguei as “the transfer of resources from the private sector to the public sector in order to accomplish some of the nation’s economic and social goals.
I.C. Winfrey defined tax as a compulsory charge imposed by the authority for the general purpose of government.
A.L. Butian 2 defined the same tax as a compulsory contribution from individuals and/or business organization for the purpose of financing government expenditure.
Many authors point to the same direction of define tax as a subject that deals with the transfer of resources from private individuals and companies (both limited unlimited companies) to the public sector for the purpose of providing the necessary social amenities and economic goods and services needed to improve the society general welfare.
Debt securities are issued to the public to subscribe to as a loan to the government it could be issued to people of the same country or to people in other countries (i.e. it could be internal and external) it is normally redeemed after a stated period.
Grants is given by the government as a subvention to take care of the cost of service rendered in a government owned establishment it may be actually cover the whole lost of service rendered but it is given as a reasonable contributed from the government to offset lost incurred by the establishment.
Currency creation occurs when the government resorts to the minting of currency needed for its operation, currency inflating is used when the currency in circulation is too low to satisfy the need of the public.
CHAPTER THREE
SUMAMRY, CONCLUSION AND RECOMMENDATIONS
SUMAMRY OF FINDINGS
The researcher made the following observations:
- It was observed in hypothesis three tested that, this management of the tax payers money and evil effects on employment and development that is causing unemployment and poor development rate in Nigeria.
- Again, some government department and not been airlifted in Enugu state. One would then wonder what happens to the income they generate, audit vigilance is lacking.
- It was also discovered during this research investigation that some government establishment do not use budget as a tool for their financial performance and control which has led reckless expenditure that lacked authorization and control of any nature.
Chapter Five
CONCLUSION
To finalize this research work, I am saying that there is very poor attitude towards public sector accounting in Nigeria.
It was unfortunate that we could not establish or indicate our major problems. People still wallow in abject poverty because of corrupt government that place no value to the individuals welfare. Politicians (both military and civilians) school declared that assets to the public. An external auditor should be needed for checks and control of public funds in order to prevent stealing.
RECOMMENDATIONS
To restore the lost glory in the Nigerian public sector accounting the following recommendations are made:
- The government must ensure that all politicians declare their assets before assuming office. Their assets are again assessed on the completion of office by the politicians
- All banks that kept ill gotten wealth should be blacklisted and their operation license withdrawn politicians who wish to travel abroad must get clearance from the government, intentions made known. This is to avoid the habit of frequent traveling abroad.
- External auditor should be appointed to audit and publish all government account. Internal auditors should be made to report directly to the government, that is to say that, the appointment of internal auditors should also be by the government.
- The government should provide basis amenities and adequate employment. This would reduce the also to defraud the government because that name poverty” has closed many peoples mind. It would also reduce the income gap between the rich and the poor.
- Government should also sponsor all political campaigns this would reduce the chance of politicians, amassing public wealth while in offices on the assumption that, they are recovering their campaign expenses.
- Government ownership of capital goods is also called for. This could curb the tendency to amass wealth through corrupt means by private individuals.
- There should be no room for military dictatorship in this country. The military has had several records of loofing the treasuring. Evidence can be adduced from the records of the recent past military government when the treasuries of most state governments were left in a mess.
- The government should increase the punishment method on fraudulent politicians, their assets should be ceased and auctioned to the public as a way of discouraging public wealth amassment.
BIBLIOGRAPHY
- Okpe Ikechukwu (1998): Public Sector Accounting Pre- Publication Edition Enugu P. 12
- Olubunmi A. Foyemi (1991): Principles of Local Government Accounting. No 24 Commercial Avenue Yaba Lagos P. 159
- Ojo A.O. (1979): Political Science and Government in Nigeria. West Africa Book Publisher Ltd. Lagos P.45
- Agyei A.K. (1993): Principles of Personal Income Taxation in Nigeria West African Book Publishers Ltd. P. 5
- Constitution of Federal Republic of Nigeria 1963
- Emekekwe P.E. (1993): Principles of Public Finance Kwshasha African Bureau of Education Services P. 133-135
- Laws of Eastern Nigeria Vol. 11, 1963
- Nwankwo Basil (1986): Public Sector Accounting in Nigeria Pre-Publication Edition Enugu P. 10
- Okpe I. Ikechukwu (1998): Public Sector Accounting Pre-Publication Edition Enugu P.12
