ACKNOWLEDGEMENT

My immense gratitude goes to Almighty God for giving me the knowledge

and strength to produce this project work. May His name be ever glorified!

My heartfelt gratitude goes to my Supervisor H.O.D Dr. C.I. Akubuo for

his immense sacrifice and endurance in going through the work and
making useful conditions and necessary corrections.

To my wonderful lecturers, Mrs. Opera Vivian, Mr. Chinedu

Onyeikechukwu, Dr. (Mrs.) Rebeccah Chukwuyem Jacinta, Mr. Okparugo
Stephen, Mr. Oti Chukwuzor, Mrs. Nnadim Eniogabu, Dr. Maduagwu
Joseph. For the knowledge you shared to me, I appreciate you all.

A special thanks to my siblings Miss Anyaelechi Blessing and Mr.

Anyaelechi Martins for their encouragement, prayers and financial
support. And to my dearest friend Mr. Kalu Shedrack for always being
willing to be there for me one way or the other right from the onset.

To my friends, for all the good times and well wishes. May God bless each
and every one of you richly. Amen.

Last but not least, I want to thank me. I want to thank me for believing in
me. I want to thank me for doing all this hard work. I want to thank me for
not taking days off. I want to thank me for never quitting. I want to thank
me for always being a giver and trying to give more than I receive.

I love you all.

1
 ABSTRACT

This research work examines the effect of accountability and transparency

on the financial management of local government in Nigeria, using Aboh
Mbaise Local Government Area as a case study. A total of 50
questionnaires were distributed, out of which 40 copies were duly
completed and returned, while 6 copies were not completed and 4 copies
were not returned. The questionnaires were analyzed and hypotheses
were tested using chi-square method.

Findings of the study reveal that enhanced accountability measures such

as regular auditing, adherence to budget provisions, and proper record
keeping significantly improve resource utilization. Likewise, transparency
through open disclosure of financial information and public participation in
budgeting fosters trust between the local government and its constituents,
thereby reducing corruption and wastage.

The study concludes that accountability and transparency are essential

pillars for strengthening financial management practices in local
government. It recommends the institutionalization of strict compliance
with financial regulations, increased citizen oversight, and continuous
training of local government officials on ethical financial practices.

2
 APPROVAL PAGE

This is to certify that this project, Effect of Accountability and

Transparency on Financial Management of Local Government in Nigeria
(A Study of Aboh Mbaise Local Government Area) written by Anyalechi
Modeline Chinonso, Reg No. 23A1T0029/AC has been approved by the
Department of Accountancy, School of Business and Management
Technology (SBMT) in partial fulfilment of the requirement of the award of
Higher National Diploma (HND) in Accountancy Department, Federal
Polytechnic Nekede, Owerri.

DR. C. I. NKWOCHA

(Project Supervisor)

DATE: _______

DR. C. I. NKWOCHA

(Head of Department)

DATE: _______

EXTERNAL EXAMINER

DATE: _______

3
 CHAPTER ONE

1.0 INTRODUCTION

1.1 THE BACKGROUND OF STUDY

What is today known as local government in Nigeria has been

metamorphosed from the precolonial traditional system of government
which was largely localized according to the peculiarities of the areas.

The local council or native authority presented the basic unit through
which any king administers her people at the grass root level. The theory
of local government therefore is that there must be an administrative
agency through which the central government governs the people in their
respective homes.

The local units usually operated under a council, which may consist of
persons elected through democratic process by the local inhabitants or
through persons appointed by the government to run the affairs of the
local inhabitants. Starting from early 1950s’ there have been series of re-
examination of the institution of local government in Nigeria. There have
been a large number of reform decrees, legislative and judicial activities
and fully implemented recommendations.

Meanwhile, the most remarkable of all these is the 1976 local government
reforms made the Nigerian local government, the government of the
government at the grass root that is nearest to the local populace.

The implication of its constitutionally guaranteed governance structure

and its closeness to the people necessitate the need for accountability

4
and transparency in financial management and their norms in
governance, more evident at this level.

But certainly, local government in Nigeria is often seen as nurturing

grounds for barefaced corruption and nonexistence of accountability and
transparency in control. The lack of integrity, accountability and
transparency at the level of government definitely constitutes a heavy toll
on the wellbeing of the people. (Agho 2012), stealing, embezzlement and
misappropriation of funds has become a major hobby in Nigeria local
government.

Local government councils in Nigeria have long been plagued by serious

issues related to accountability and transparency, which have negatively
affected their financial management and service delivery. One of the
major concerns is the circumvention of both financial and nonfinancial
procedures, leading to unended irregularities within the system.

Many local government employees have not experienced any direct

benefit from efforts aimed at improving accountability. Additionally, there
has been little to no positive change in the behavioural attitude of council
staff toward accountability, whether in their fiduciary or official conduct.
This undermines ethical governance and promotes impunity.

A particularly troubling issue is the persistent payment of salaries and

allowances to ghost workers. These payments are often processed and
approved without due diligence, showing a clear lack of transparency and
internal control. Account officers, who are supposed to serve as financial
gatekeepers, frequently fail to fulfil their responsibilities and participate in
these acts without facing consequences.

5
Furthermore, overhead expenditures are incurred without paper
documentation or justification. In many cases, records that do exist favour
the council chairmen or other top officials and are deliberately destroyed
to avoid scrutiny or prosecution after their tenure. This practice erodes the
integrity of financial processes.

Procurement processes are also widely abused. Instead of following due

tender procedures, contract and supply opportunities are awarded based
on favouritism, with friends and family members receiving contracts
without competitive bidding. This not only violates procurement laws but
also limits the quality, cost-effectiveness of service delivered to the public.

Moreover, contract awards are often driven by political loyalty or personal

connections. Individuals who financially supported the election campaigns
of council chairmen are frequently rewarded with contracts, which they
may abandon or execute poorly—knowing they are unlikely to face any
disciplinary action. This practice not only compromises the development
objectives of local government but also reinforces a cycle of corruption
and inefficiency.

These problems collectively demonstrate the urgent need to examine how

accountability and transparency, when properly implemented, can
strengthen the financial management of local government in Nigeria.

1.3 OBJECTIVE OF THE STUDY

The following objectives of this research work stand to be achieved:

6
 i) To ascertain whether accountability and transparency has put to
check the circumvention of activities of local government council
in Nigeria.
ii) To ascertain whether the inhabitants of local government council
have benefited from the process of accountability and
transparency through the improvement of social amenities.
iii) To examine whether accountability and transparency have
influenced the official and unofficial financial behaviour and
attitudes of council staff in Nigeria.
iv) To assess the role of accounting officers in promoting financial
accountability and transparency in the management of local
government funds.
v) To evaluate how political interference and favoritism affect
procurement processes and contract awards within local
government councils.

1.4 RESEARCH QUESTIONS

The following research questions are designed to attend the objective of

this work:

i) To what extent have accountability and transparency reduced the

circumvention of financial and administrative activities in local
government councils?
ii) Have the residents of local government areas benefited from
accountability and transparency, thus in improved social
amenities?

7
 iii) How have accountability and transparency influenced the
financial behaviour and attitudes of council staff in their official
and unofficial capacities?
iv) What role do accounting officers play in promoting accountability
and transparency in the financial management of local
government?
v) How does political interference and favoritism affect procurement
processes and the awarding of contracts in local government
councils?

1.5 STATEMENT OF HYPOTHESES

The research work is based on the following hypotheses which are

formulated in tackling the problem in the subject:

Ho1: Accountability and transparency have no significant effect on curbing

the circumvention of financial and administrative activities in local
government areas.

Hi1: Accountability and transparency have a significant effect on curbing

the circumvention of financial and administrative activities in the local
government councils.

Ho2: Accountability and transparency have not significantly improved

social amenities for residents of local government areas.

Hi2: Accountability and transparency have significantly improved social

amenities for residents of local government areas.

Ho3: Accountability and transparency do not significantly influence...

8
Ho₃: Accountability and transparency do not significantly influence the
financial behaviour and attitudes of council staff.

Hi₃: Accountability and transparency significantly influence the financial

behaviour and attitudes of council staff.

9
1.6 SIGNIFICANCE OF THE STUDY

This study is significant because it addresses the critical role of

accountability and transparency in enhancing financial management
within Nigeria’s local government councils. By identifying how poor
accountability affects the effective use of public funds, this research offers
practical insights for improving local governance.

The findings will benefit government officials and policymakers by guiding

reforms aimed at reducing financial misconduct and promoting efficiency.
Local government administrators will also gain a better understanding of
how transparent practices can improve service delivery and public trust.

For researchers and students, this study adds to the body of knowledge
in public sector financial management and local governance. It will serve
as a useful reference for future studies, academic work, and research in
related fields.

In addition, civil society organisations and anticorruption agencies can use

the outcomes of this research to develop targeted strategies that
encourage transparency and responsible leadership at the grassroots
level.

1.7 SCOPE OF THE STUDY

This study focuses on examining the effect of accountability and

transparency on the financial management of local government councils,
using Aboh Mbaise Local Government Area in Imo State as a case study.
It covers key areas such as revenue generation, expenditure control,
procurement procedures and the financial behaviour of council staff.

10
The research will be limited to the administrative activities and the
financial practices within Aboh Mbaise local government area. Data will
be collected through questionnaires, interviews, and internal practices
within the council, and a review of relevant records from selected
departments within the council.

This study considers the role of accounting officers, political office holders
and other staff in ensuring or hindering accountability and transparency.
It does not extend to state or federal government operations but
concentrates solely on the financial structure and governance of the local
government council. The time frame of this research includes recent years
to reflect current practices and challenges in local government financial
management.

1.8 LIMITATION OF THE STUDY

In this research work, there are many constraints that affect the output of
this work. One of the limitations is time frame given to this work by the
school for the writing and submission of this project work as well as
academic and personal pressure was faced.

Also, it was not easy collecting information from the council area. Officers
I met did not allow me access to some of their documents for security
purposes. Furthermore, most of the personnel in Aboh Mbaise council
area are not qualified accountants and this imposed some problems in
data collection. Exact is one of the major problems in the study, getting it
from the management or people in authority is not easy. Financial
limitation is another, imposing a big constraint in conducting the research
11
work effectively, particularly in administering the questionnaires and lack
of adequate material for the study.

1.9 DEFINITION OF TERMS:

1. Local government: This is defined as the third tier of government

in Nigeria. It is the government at the lower level that has power to
control our local affairs as well as the staff by carrying out its
functions.
2. Revenue: This is defined as the income the government generates
from sources like taxes, levies, fines, and government allocations,
used to fund public services and development.
3. Allocation: This is defined as the distribution of funds or resources
from a higher level of government like federal or state to local
government to support their operations and development projects.
4. Management: Is the process of planning, organizing, directing, and
controlling resources to achieve specific goals efficiently and
effectively.
5. Council: A council is an administrative body established within a
defined area to carry out government functions such as
policymaking and service delivery.
6. Accountability: This is defined as the obligation of individuals or
organizations, especially public officials, to explain, justify, and take
responsibility for their actions and use of public resources.
7. Transparency: This is defined as the practice of making
information, decisions, and processes open, clear, and accessible
to the public to promote trust and prevent corruption.

12
13
 CHAPTER TWO

2.0 REVIEW OF RELATED LITERATURE

2.1 CONCEPTUAL LITERATURE

2.1.1 CONCEPT OF ACCOUNTABILITY

According to Adegite (2010) defined “accountability as the obligation to

demonstrate the work which has been conducted in accordance with
agreed rules and standards and the officer input fairly and accurately on
performance results vis-a-vis mandated roles or plans.

It means doing things transparently in line with due process and the
provision of feedback.

Johnson (2009) says that problem of accountability is an essential

component in the functioning of public system, accountability means that
those who are charged with drafting and carrying out policy should be
obliged to give an explanation of their actions to their electorate.
Prechman (2010) observed that capacity to achieve full accountability has
been and continues to be adequate partly because of the wide range of
objectives and associated expectations attached by accountability. He
further argues that accountability is to be achieved in full including its
constructive aspects, then it must be designed with care. The objective of
accountability should go beyond the naming and shaming improvements
in economic management to reduce the incidence of institutional
recidivism.

14
According to Coke (2010), the various approaches to accountability based
on the language of account can be grouped into:

A. Process based accountability: This approach measures compliance

with pre-set standard and formally defined outcomes.
B. Performance based accountability: This approach measures
performance against abroad objectives. This measurement may be
qualitative and this criteria a goal of which performance is measured
less precisely defined. Adegite (2010) also noted that there are three
pillars of accountability, which the UNDP tagged ATI (Accountability,
Transparency and Integrity).
i. Financial accountability – The obligation on anyone handling
resources, public office or any other position of trust to report on
the intended and actual use of the resources of the designated
office.
ii. Administrative accountability – This type of accountability
involves a sound system of internal control which complements
and measures proper checks and balances supplied by
constitutional government and an engaged citizenry. This
includes ethical codes, criminal penalties, and administrative
reviews.
iii. Political accountability – This type of accountability involves a
sound system of internal control which complements and
iv. Political accountability – This type of accountability
fundamentally begins with free and fair transparent elections.
Through periodic elections and control structure, elected and
appointed officers are held accountable for their actions while
holding public office.

15
 v. Social accountability – This is a demand-driven approach that
relies on civic engagement and involves ordinary citizens and
groups: exacting greater accountability for public actions and
outcomes.

Ojuku (2019) argues that the factors and forces which militate against
accountability in Nigeria include ethnicity and tribalism, corruption,
religious dichotomy and military culture.

The interest is to help local government improve the service of

accountability and transparency. In this instance, the local government is
there to give proper accountability, which is prevalent in Nigeria because
of the associated problems of workers.

In this review, accountability and transparency is contending with the

effective performance in the government. Beside auditing in local
government budgeting in the local government accounting fund and
financial accountability are all brought to light

[Link] Financial Management

Financial management is concerned with the planning, organizing,

procurement and utilization of government resources as well as the
formulation of appropriate policies in order to achieve the aspirations of
members of that society.

Premchand (2001) sees public financial management as the link between

the community’s aspiration with resources and the present with future.

16
It lies at the very heart of the operations and fiscal policy of government.

The Stages of Financial Management

1) Policy Formulation: Is one of the most important stages in financial

management structure. According to Premchand (1999), the
transformation of the society’s aspiration into feasible policies with well
recognized financial implications is the crux of financial management.

Issues not well addressed during policy formulation tend to grow in

magnitude during implementation and may frequently contribute to major
reversal in the pursuit of policies or major slippages that may lead to
contrary results.

Financial management should be designed to achieve certain micro and

macro-economic policies as it entails a clearly defined structure and
articulated system that moves to promote cost-consciousness in the use
of resources.

The government needs to have an estimate of revenue and expenditure

to achieve the policy objective of government.

2) Budget Formulation: The budget formulation is the step that involves

the allocation of resources before the submission to the legislature for
review and final approval.

According to Appah (2009), in Nigeria the budget formulation involves the

articulation of the fiscal, monetary, political, economic, social and welfare
objectives of the government by the president based on those

17
 i. The department issues policies and guidelines which form the basis
of circulars to ministries/departments requesting for inputs and their
needs for the ensuing fiscal period.
ii. Accounting officers of responsibility units are required to obtain and
collect the needs as their units.
iii. Accounting officers of ministries (in this case the permanent
secretaries) are required to collate these proposals which would be
defended by units’ heads before the supervising minister.

Budget Structure

According to Anyanwu (2010), a budget structure addresses the questions

of how the budget is or should be composed.

In Nigeria, budgets have revenue and expenditure sides.

According to Premchand (2010), many governments have yet to put in

place cash management systems which would pave way for coordinated
domestic management.

The practice of funding outlays to collected revenues has exacerbated this

problem.

He further argued that there is a massive underfunding of programs and

projects provided for in the budget.

3) Payment System: This involves the operational procedures for

receiving monies for the public and for making payment to them.

18
In Nigeria, government makes payments using a variety of procedures.
These includes the routine of issue of cheques, cash payments by
authorities, and electronic payment systems.

Government accounting and financial reporting: This is a very

important component of the public sector financial management process
in Nigeria.

As Adams (2010) noted that government accounting entails the recording,

communicating, summarizing, analyzing and interpreting financial
statements in aggregate and in detail.

In the same vein, Premchand (2010) argues that government accounts

have the dual purpose of meeting internal management requirements
while providing the public with a window on government operations.

Government financial reports should be prepared with the objective in

mind of providing full disclosure on a timely basis of full material fact
relating to government financial position and operations. Achua (2009)
stated that government financial reports on their own do not mean
accountability but they are indispensable parts of accountability.

4. Audit: One of the fundamental aspects of public sector financial

management in Nigeria is the issue of audit of government
financial reports.

Audit is the process carried out by suitably qualified auditors, during which
the accounting records and the financial statements of enterprises are
subjected to examination by the independent auditors with the main
purpose of expressing an opinion in accordance with the terms of

19
appointment. The purpose of expressing an opinion in accordance with
the terms of appointment.

The high-level corruption in the public sector of Nigeria is basically as a

result of the failure of auditing.

As Premchand (1999) put it, “many audit agencies are legally inhibited
from reviewing policies. Most of them cannot follow the trail of money as
they do not have the mandate to walk into books of contractors and
autonomous agencies."

One fundamental failure of audit is the absence of value for money in the
Nigerian public sector.

2.1.2 ACHIEVING ACCOUNTABILITY IN FINANCIAL MANAGEMENT

A) LEGISLATORS TO CHAMPION THE CAUSE OF ACCOUNTABILITY

The legislators in Nigeria and other developing countries have the

constitutional responsibility to ensure that the executive are accountable
to the people in the management of public funds.

But the reverse is the case in Nigeria, where the legislators are part and
parcel of the collapse of the system.

However, for accountability to be actualized in Nigeria, legislative arms of

government must ensure that appropriate laws and oversight functions
are properly performed by them.

B) RE-ORIENTATION OF VALUE SYSTEM

20
One fundamental problem in Nigeria is the failure of the value system.
This failure has subjected the high level of corruption and lack of
accountability by public officers.

According to Adejoke (2010), the corrupt tendencies pervade the whole

state of the Nigerian society so much so that the youths, who are
supposed to be leaders of tomorrow, are neck-deep in examination
malpractice, 419 and internet fraud.

She recommends that for Nigeria to be among the most developed

economies in 2020 and beyond, the nation’s value system should be
strengthened through the reintroduction of Civic and Ethics into the
curricula of our educational system while a national orientation for the
rebirth of our value system should be urgently initiated.

C) MANAGEMENT ACCOUNTABILITY FRAMEWORK

Accounting law is only a part of the accountability process. A proper

accountability framework would require that the government should put in
place guidelines for proper work plan , method of monitoring plans ,
reporting performances, accumulation of reports as evidence in
performance, reporting system of validation and oversight of performance
reports, establishing institutions, training public managers and guidelines
for dealing with political institutions of public managers.

D) PROTECTION OF WHISTLE BLOWERS

One fundamental means of achieving optimum accountability in Nigeria is

the protection of the whistle blowers. An effective framework of
accountability requires that those who blow the whistle should be

21
protected against any reprisals. The government in Nigeria should
establish an approach that will protect the whistle blowers.

E) CREATING AN ENVIRONMENT OF ACCOUNTABILITY

An effective framework of accountability rests, besides formal structure,

on a proper environment. It requires such things as evidence of a proper
code of conduct, training in ethics, assurances of equal treatment by
senior managers toward all employees, and unforgiving accountability of
senior officers. It also means that the oversight bodies should adopt a
reasonable approach towards public managers.

F) ADOPTION OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING

STANDARDS

The success of accountability in the public sector in Nigeria lies on the

proper implementation of the International Public Sector Accounting. It is
very necessary that ministries, departments and agencies should begin to
use the accrual basis of accounting.

A complete accrual basis of accounting would make public managers

accountable for recording and safeguarding of public assets, managing
public cash flows and disclosing and discharging public liabilities.

Adegbite (2010) says that to attract foreign direct investments to Nigeria,

the financial reporting processes must be aligned with international
standards.

G) ADOPTION OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING

STANDARDS

22
The success of accountability in the public sector in Nigeria lies on the
proper implementation of the International Public sector accounting
standards. Public sector in Nigeria uses the cash basis of accounting. It is
very necessary that ministries, departments, and agencies should begin
to use the accrual basis of accounting. A complete accrual basis of
accounting would make public managers accountable for recording and
safe-guarding of public assets, managing public cash flows and disclosing
and discharging public liabilities.

Adejoke (2010) says that to attract foreign direct investments to Nigeria,

the financial reporting processes must be aligned with international
standards.

H) PUBLIC PERFORMANCE REPORTING

Public managers are in a business that affects virtually every aspect of a

person’s life. People therefore have a right to know how the public
managers are doing their business. The legislators need to take a lead in
this regard by enacting a law that makes it obligatory for all public sector
managers to report their performance.

Public performance reporting by departments or units should be made

mandatory.

I) DETERMINATION OF THE COST OF DOING GOVERNMENT

BUSINESS

One major problem affecting the growth of public expenditure and

corruption in Nigeria is the high cost of doing government business. A
large number of costs in the form of used or existing assets or facilities

23
are not recorded in the year the assets are used. The government,
following a cash-based accounting, does not have a system of charging
depreciation on the government assets and allocating to various programs
and projects. Thus, the true cost of doing government business remains
hidden.

A proper accountability framework would require that a detailed cost

accounting system be introduced in government.

J) THE ESTABLISHMENT OF THE BENCHMARK OF EFFICIENCY

A very important problem facing public sector managers in Nigeria is the

clear absence of performance benchmarks. Public performance reporting
requires that both merit & efficiency be revised for all Ministries,
departments and agencies. This should be done in consultation with the
MDAs themselves and should remain open for periodic review and
revision.

K) STRENGTHENING THE PUBLIC ACCOUNT COMMITTEE

Public account committees play a very significant role in accounting of

public offices in Nigeria. Public accounts committees should be
strengthened with a system of familiarizing the members with the audit
scores, approach and methods through workshops and powers to take
action when their recommendations are not implemented.

L) STRUCTURE OF GOVERNMENT ACCOUNTING AND AUDITING

24
Government accounting system in Nigeria is grossly deficient. Financial
reports are untimely and unreliable at all levels of government. Little
attention is paid to financial accountability in the public service.

Akintola (2010) posits that there is an urgent need to protect the common
wealth from poor performance and fraud, and to protect individuals from
lawless, arbitrary and capricious actions.

2.1.3 STRUCTURE/FUNCTION OF A LOCAL GOVERNMENT

According to Fayemi (2011), the local council or native authority

represents the basic unit through which a nation administers her people
at the grassroots level. The feeling of local government therefore is that
there must be an administrative agency through which the central
government governs the people in their respective locality. In Nigeria’s
context, real political authority is deconcentrated to lower levels of
government.

The native authority may raise substantial part of revenues through

imposition of local taxes. The bulk of their revenue comes through federal
government on the basis of statutory allocation. The local unit usually
operates under a council which may consist of persons elected through
democratic process by the inhabitors or through persons appointed by the
government to run the affairs or the local inhabitants.

2.1.4 FUNCTIONS OF LOCAL GOVERNMENTS

The following are some of the functions:

1. The formulation of economic planning and development schemes

for the local government areas.
25
 2. The collection of rates and issuance of radio and television licenses.
3. The establishment and maintenance of cemeteries, burial grounds
and homes for the destitute.
4. Establishment, maintenance and regulation of slaughterhouses,
slaughter slabs, markets, motor parks and public conveniences.
5. Construction and maintenance of roads, streets, drains, street
lights, parks, gardens, open spaces and such public facilities as may
be prescribed from time to time by the government.
6. Registration of births, deaths and marriages.
7. Control and regulation of:
a. Outdoor advertising and hoarding
b. Shops and kiosks
c. Restaurants, bakeries and all other places of sale of food to
the public
d. Movement and keeping of pets or domestic animals
e. Licensing, regulation and control of the sale of liquor

2.1.5 ACCOUNTABILITY AND ACCOUNTING FUNCTION IN THE

LOCAL GOVERNMENT

According to Nyark (2011), Accountants all over the world perform four
traditional roles and these roles are; keeping business records, protection
of the assets of the organisation or Fund from misappropriation, provision
of financial information and ensuring compliance with legal requirement of
these roles, protection of organisation assets and funds from mis
appropriation bears the closest affinity with the concept of accountability.

However, we have to note that both terms are not synonymous but instead
are only subtly related. Both are essential in stewardship rendition.

26
Accountability as used in conventional business parlance means
inventory.

In this sense, it deals with material things that can be seen and counted
(eg tangible assets and money). But then from a broader perspective, it
entails verification of material count and personnel information from two
or more independent sources.

Thus, it is a social/internal control concept and the essence is to prevent

theft and ensure employees honesty. Accounting on its own part simply
means or is concerned with proper keeping of records of monetary value
of property or assets.

The difference between them is that accounting places more emphasis on

balancing account after they are established with little emphasis on how
the accounts were established and dissipated.

However, the subtle relationship between them is that accounting is part

of accountability only when it is one of the verifying independent sources.

Generally, the entire spectrum of the work of the local government entails
revenue generation (both external and internal).

2.1.6 AUDITING IN THE LOCAL GOVERNMENT

According to Ama (2003:369) auditing can be defined as the examination

of certain statement covering the financial position of organisation on a
certain date in order that the auditor may issue a report on them.

27
According to Fayemi (2019) the account of the local government must be
audited by the auditor (from the office of the state auditor general) and the
council internal auditor.

Ama (2015) defined Internal auditing as an Independent appraised activity

with an organization for the review of operations as a series to
management.

Azubike (2016) states that the auditors of government should ensure that
the internal control procedures are adequate and in paying attention to
internal checks, they should ascertain record, test and evaluate:

a. plan of the establishment whether it provides appropriate

segregation of duties.
b. personnel of a quality to commensurate with responsibilities.

2.1.7 BUDGETING IN THE LOCAL GOVERNMENT

Ama (2012) asserts that budget is a quantitative expression of plan of

action prepared in advance of the period which to relates.

By the assertion of Fayemi (2018), the operation of local government

account begin with the adoption of the budget as an annual estimate of
revenue and expenditure. According to him, the budget contains revenue
and expenditure profile and it is a public service budget which covers only
areas which has constitutional authority. The heads of expenditure in the
estimate constitute the basis of an appropriation of revenue necessary to
meet the expenditure during the year.

28
2.1.8 METHODS OF LOCAL GOVERNMENT ACCOUNTING AND THE
RESPONSIBILITIES.

Local government as other non-profit organisation utilize some accounting

methods to obtain financial information on its activities - such (information
Oladimeji, 2005) - affirmed are useful in local government finances such
as higher tiers of government the Federal and state, other
creditors, investors the local populace and other external users.

local government as other non-profit organization utilize some accounting

methods to obtain financial information on its activities. Such information
Oladineji (1980; 40-41) affirmed are useful in local government finances
such as high tiers of government the Federal and state, other creditors,
investors, the local populace and other external users.

The keeping and also the following

a) The design of accounting system

b) preparation of cost studies.

Development of computer application to accounting process on analysis

and interpretation of accounting information as an aid to administrative
decision.

These local government accounting are characterized according to

Abofinade (2013) are characterized by

1. Cost determination
2. Receipt and payment, revenue and expenditure
3. Cash basis of accounting
4. Depreciation
29
 5. Revenue and expenditure classification in local government under
classified heads and sub-heads which is uniform to local
government.

2.1.9 ACCOUNTS KEPT BY LOCAL GOVERNMENT

Local government like other non-profit making organization kept various

account which includes the following:

A. MAIN Account

i. cash book
ii. Adjustment voucher
iii. Main journal voucher
iv. Impress account

B. THE LEDGER Account

i. The general revenue balance account

ii. The cash and bank account
iii. The advance account and summary
iv. Deposit account and summary

C. SUBSIDIARY ACCOUNT

i. Departmental vote expenditure account

ii. Department vote revenue account
iii. Revenue and expenditure abstracts

D PERIODIC STATEMENT

i. Bank Reconciliation statement

30
 ii. Revenue and expenditure
iii. Final accounts

The documents involved in cash bank transaction includes the following:

PAYMENT VOUCHER: All payment (or disbursement of funds) by the

local government are effected by the local government cashier or Impress
account holders.

Ozor (2010) emphasized that every such payment shall be supported by

authorized payment voucher approved expenditure. There are various
types of payment vouchers used by the local government.

The types of payment are classified as follows: General payments, Staff

salaries, Pension, travelling allowance contracts etc.

i. Receipt voucher for receipts made

ii. Adjustment or record books
iii. Main journal voucher
iv. Impress accounts special, standing Impress
v. ledger account
vi. Deposit account
vii. Year end return
viii. Advance ledger.

2.1.10 AN OVERVIEW OF THE MAJOR SOURCE BY THE LOCAL

GOVERNMENT

The local government revenue sourcing can be categorized into main

source which is

31
Internal sources and External sources.

1. THE INTERNAL SOURCES OF REVENUE OF FUND

Under the internal sources, there are fees and charges which are simply
called User Fees. User Fees are directly by those who consumes a
service and are normally appropriate to meeting all or part of the local
government areas while other may be resided outside the jurisdiction of
the local government Council. User Fees are not only intended to raise
revenue, but sometime to permit the regulation of the particular service for
which they are levied. Fees and charges fall into the categories. The first
category comprises fees and charges that are levied by local government
not freely set by the local government while the local government are free
to decide the level of charge within the minimum. Example of these are
Britain school meal fees, dog license, fire arm and cinema and theatre
license fees. The second category fees and charges which are fixed by
the local governments themselves with the central government.

In Nigeria, the list of fees and charges which the local government council
can top is quite numerous and includes the following: bicycle license,
Canoe license, dog license, cart trade, taxi, permit bus/commercial
vehicle, motorcycle and hygiene permit, liquor license, palm wine license,
bucket/cigarette permit, squatters, hawkers permit, wharf landing permit,
slaughter fees, mobile seller, promotion license, radio/television license
open air preaching permit, night soil, disposal fees, birth and death
fees registration, dispensary and maternity Fees etc.

Before 1976, this source of income contributed relatively little sum to the
local government coffers because they were inadequately and inefficiently

32
tapped. The federal government made a move towards harmonizing fees
and charges not only between the various local government within a state,
but also between neighbouring state, while consultations on them events
be initiated by the Admin authorities of the local government. Fees and
charges, however, apart from generating revenue to the local government,
assist to improve resource allocation within the local government system
(Belloimen 1990:53-56) Some of these major source of the government
not internal revenue are explained as follows.

A. FINANCIAL RECORDS

According to Fayemi (2018) there are two types of financial records that
are kept in the local government council, they are:-

i. Records of estimate which shows the approved revenue and

expenditure the result of financial position for the year.
ii. Records of factual transaction which show the actual revenue
and expenditure the financial position during the year. According
to him, each of these records must be included in the annual
financial statement of the local government councils especially in
expenditure reports.

B. ACCOUNTING CONTROL

This is made up of all methods and procedures that are mainly concerned
with authorization of transactions, the safeguarding of funds and assets
and accuracy of accounting records.

33
Horngren (1990:80) pointed out that a good accounting control will help to
increase efficiency decrease waste, unintentional errors and fraud. The
council treasurer as the chief financial officer/adviser plays a dominant
role in financial control by ensuring that:

i. There is strict compliance with financial memorandum in

treasury.
ii. All accounts and other records are kept in the treasury as
prescribed by financial memoranda.
iii. Monthly bank reconciliation statement is prepared.
iv. All accounts and other records are kept in the treasury as
prescribed by financial Memorandum.

C. INTERNAL AUDIT UNIT:

Millichamp (1993:5) sees internal audit as an independent appraisal

function established by the management of an organisation for the review
of the internal control system as a service to the organisation. Objectively,
it examines, evaluates and reports on the adequacy of internal control as
a contribution to the proper, economic, efficient and effective use of
resources.

The internal audit unit performs the following:

i. Carries out an independent appraisal of the accounting, financial

and other processes of the local government.
ii. The internal auditor safeguards the assets and interests of the
financial activities of the local government in order to detect fraud
and errors.

34
 iii. Provision of complete and continuous audit account and
reviewed expenditure plan.

D. BUDGETARY CONTROL:

The principle of budgetary control involves the process of comparing

actual results on the ground with planned results of the budget and
reporting on the variation. Budgetary control is a system of evaluating, co-
ordinating the activities, performance implementation of plan,
communicating, monitoring and authorizing action. Therefore, the control
system of the local government with help of the chief executive and
accounting officer of the local government in controlling the derived
revenue and estimated expenditure of the council.

2. EXTERNAL SOURCES / REVENUE OF FUND

Below are the major external sources of funds, with real world examples
and references to public figures where applicable.

i. Statutory Allocations:

These are constitutionally mandated funds distributed monthly by the

Federation Account Allocation Committee (FAAC) to all local government
— for example in Aboh Mbaise local government, statutory allocations are
used to maintain primary health centers and pay local workers. During
Governor Rochas Okorocha’s administration in Imo State, statutory
allocations were supplemented by state support to fund rural infrastructure
and empowerment programs.

ii. Grants:

35
These are non-repayable funds from federal, state, or international bodies
meant for specific purposes like health, education or infrastructure.

For example, under the Subsidy Reinvestment and Empowerment

Programme (SURE-P) introduced during President Goodluck Jonathan’s
tenure, many local governments (e.g. Nnewi local government in Anambra
State) received grants to implement youth empowerment and maternal
healthcare projects.

Another example is the Rural Access and Mobility Project (RAMP), co-
funded by the World Bank and the Nigerian government, provided grants
for rural road development in local governments across Imo, Enugu and
Cross River states.

iii. Loans and borrowings

Though local government rarely borrow independently they can benefit

from state-level or development partner loans used for local projects.

For example, Kaduna state, under governor Nasir El-Rufai, negotiated

loans from the World Bank that were used to support education and rural
development programs across its local government programs across its
local governments including Zaria and Kachia.

iv. Donor Aid and Foreign Assistance

International development partners often channel support to local

governments through federal or state coordination.

36
For example, in Bauchi and Sokoto states, local governments benefited
from the UNICEF/DFID-funded WASH program improving access to clean
water and hygiene facilities in schools and communities.

Another example, the EU-UNICEF rural development program supported

health, education and infrastructure in local governments in Ebonyi and
Niger states.

v. Public-Private Partnerships (PPPs)

These involve collaborations between local governments and private

sector investors for service delivery or infrastructure development.

In Abuja Municipal Area Council (AMAC), the local authority entered PPPs
with private waste disposal firms to manage refuse collection and
earn shared revenue.

Under Governor Babatunde Fashola’s administration in Lagos, Local

Governments like Eti-Osa and Alimosho engaged with private developers
for market and transport terminal upgrades, operating under revenue-
sharing models.

These external sources of revenue are vital for local government to meet
development needs and improve service delivery; however, access and
effective use often depend on state-level ordination, good governance,
and transparent management.

2.2 THEORETICAL LITERATURE

This study is hinged on two theories; stakeholder’s theory and

Accountability theory.

37
Stakeholder theory propounded by Edward modified by Freeman (1984),
defined it as “Any group or individual who can affect or is affected by the
achievement of the organisation’s objectives”. The theory asserted that
stakeholders are required to be provided with reports which measure the
actual performance and make decision regarding the business. Such
report is expected that values are impacted to the stakeholders and that
the stakeholders are enjoying the benefit for which they are entitled to.
Fontain, Haarman and Schmid (2006) described normative stakeholder
theory as ethical behaviour to be portrayed by the manager and
stakeholders for the purpose of the organisation.

Stakeholders should exhibit accountability and transparency of the

management (government) to the stakeholders (citizens). In this case, the
public is the stakeholder and any decision made by the government
affects the public one way or the other. Also, a government technical that
is not providing transparent and accountable report to the stakeholder is
reducing its value expected.

Accountability Theory

This theory of accountability was proposed by Vance, Lowry and Eggett

(2015). It explains how the perceived need to justify one’s behaviour to
another party causes one to consider and feel accountable for the process
by which decisions or judgments have been reached. In turn, this
perceived need to account for a decision-making process and outcome
increases the likelihood that one will think deeply and systematically about
one’s procedural behaviours.

38
This theory was originally developed by Tetlock, Lerner and colleagues
and it has been effectively applied in organisational research. Importantly,
as explained carefully by Vance, Lowry and Eggett (2013), a useful way
to understand accountability is to distinguish between its most prevalent
uses:

① as a virtue and ② as a mechanism. As a virtue, accountability is seen

as a quality in which a person displays willingness to accept responsibility,
desirable trait in public officials, government agencies or firms. Hence, in
this use, accountability is a positive feature of an entity. As a mechanism,
accountability is seen as a process in which a person has a potential
obligation to explain and justify his actions to another party who has the
right to pass judgement on the actions as well as to subject the person to
potential consequences for his or her actions.

Accountability theory focuses on the process of accountability.

Accountability perception, for example, “even the simplest accountability
manipulation necessarily implicates several empirically distinguishable
sub-mechanisms” (Lerner and Tetlock 1999), including the presence of
another person, identifiability, and expectation of evaluation.

2.3 EMPIRICAL LITERATURE

Oruntoba and Adebimpe (2019) investigated the relationship between the

transparency among public office holders and the performance by the
Nigerian public service using Ose local government Area Secretariat in
Ondo state as a case study. It was concluded that appraising the
transparency of public officials positively impacted on the performance of
public sector in Nigeria.

39
They recommended that public officers should be made answerable to
any misappropriation or mismanagement of funds traceable to such
irrespective of the calibre of the officer in the society. Okereke and
Oyerinden (2010) opined that inefficiency of the Nigerian Capital Markets,
financial instability and non-sustainability of economic growth and
development are consequences of improper accountability and lack of
transparency among the public office holders and statutory officials
of the government.

Sylvester (2012) assessed the role of accountability in the public sector in

Nigeria using field survey research. He discovered that poor accountability
affects the allocation and development of resources in Nigeria. They
opined that every government department ministry and agency should
provide financial statement every financial year that discloses fund and
report that shows the performances, various analysis and facts publishing
performance. Also, Onyorah and Appah (2016) in their study titled
"Accountability and public sector financial management in Nigeria", found
that the level of accountability is very poor in Nigeria as a result of
unavailability of relevant, reliable and quality information about
government activities. The study opined that for accountability to be
successful in the management of public funds in Nigeria, there must be
reduction of corruption, increase of public sector accounting and auditing
standards and also restructuring of audit committee.

As reviewed by also cited Afolabi (2014) in their study on the effects and
effectiveness of accountability and transparency in government sectors,
they made use of Secondary data, cross tabulation and chi square were
made to analyze the data.

40
Based on the findings, they recommended that independent and effective
internal control will be needed to achieve accountability and transparency
in the government sector.

Mmadumere and Ofoegbu (2015) conducted a study on 36 states in

Nigeria, using descriptive statistics for the study variables. This study is
as a result of lack of implementation of socio-economic reforms and its
effect on the economy. Based on the findings, this study suggested that
government should provide an audit committee independent of the
ministry.

Omolehin and Yeyemi (2016) reported in their study efficiency and

accountability of public sector revenue and expenditure in Nigeria that the
level of accountability is very poor in Nigeria as a result of lack of
comprehensive, relevant, quality and reliable public financial report. It was
recommended that for accountability to be successful in the management
of public fund, there must be reduction in related corruption, public sector
accounting and accounting standards should improve, public account
committee should be restructured and the value of money should be
applied in all government businesses.

Abdulraheem, Bio and Messer (2016) carried out a study on government

financial reporting and public accountability in using primary data through
administration of questionnaire and personal interview. The study
reported a weak score on the level of financial accountability which depicts
reduction in accountability in the managerial function. The study
recommended that financial report should be prepared by following the
standard and disclosure of financial reporting information must be
reasonable and reliable. Likewise, Abubakar, Anifowose and Charles

41
(2015) viewed a topic on accounting for influence of financial convention
on revenue utilization in local government areas. The study adopted a
survey research design. As a result of their findings, they concluded that
if there is higher level of execution of financial convention

Therefore, they recommended that the relevant authorities should ensure

that the staffs are discipline while handling financial and economic matter.

According to the study of Ugwuji, Nweze, Enekwu and Mba (2016) on the
effect of probity and accountability on the development in Nigeria, the
result showed that there is no significant relationship between probity and
government effort to recover stolen fund. Thus, they recommended that
country should dwell on the level of corruption and improve integrity.
Ibagben (2013) studied the effect of corruption and public accountability
in the Nigerian public sector and recommended that those found guilty of
the corrupt practices should be scrutinised and public service audit
committee should be restructured.

Olatunji (2015) examined several government policies inhibiting

accountability into public office using least square regression analysis
methods. He concluded and recommended that actions development
should be measured by public officer level of accountability. Bouvard,
Pierre, and Adolfo (2015) carried out a study on transparency in the
financial system; ex-post facto research design was adopted for this
study. The researcher concluded that transparency enhances the stability
of financial system which finds but has no relationship effect during normal
economic time. Likewise, Adeyuwon (2014) studied a qualitative research
on enhancing public accountability and performance in Nigeria and
concluded that unless good governance is in place with public

42
accountability carefully observed, effective public sector performance
cannot be realized.

2.4 GAP IN REVIEWED LITERATURE

Accountability is a form of obligation on the organizers of public activities

to be able to explain and answer all matters relating to the step of all
decisions and processes carried out, as well as accountability for the
results and performance (Lufile, 2014). Measurement of government
accountability is often done by using a comparison between planning and
realization (Mokenhau 2012, Ahmad & Salmar, 2019, pp. 1540–1543). In
terms of transparency, budget documents must be open, then paired and
accessible to citizens. Civil society organisations and other stakeholders
must be able to access budget report in a full and timely manner (OECD:
2016a, b). In Government Regulation Number 7, 2005 which states that
Supervision of the implementation of Regional Government is a process
& activities aimed at ensuring that the Regional Government runs officially
and effectively in accordance with the plans and provisions of the
legislation. This has tend to bridge the gap of studies with other related
studies.

2.5 SUMMARY OF REVIEWED LITERATURE

Given the rather elaborate constitutional, statutory, administrative and

other provision put in place to ensure probity, accountability and
transparency by the public functionaries, the popular belief of many

43
people in this country and abroad that there is a serious problem of
accountability and transparency in Nigeria is very instructive. It goes a
long way in explaining the reason why Nigeria are wallowing in avoidable
poverty despite the country’s huge resources. It is generally agreed that
the notion of accountability means that the public institutions and officers
and hold them answerable for what they do and/or failed to do.

Agreement on how to operationalise this concept is more elusive.

However, together with the traditional concept of formal hierarchial

accountability, the concept of subjective accountability as propounded by
(Mosher, 2018) which relies on individual responsibility together with
experience, value and professional relationships is the most appropriate
element of accountability to focus upon in Nigeria.

A serious administrative and policy reform in Nigeria must substantially

address the notorious lack of transparency in the public sector and
financial markets, especially with state and global markets. Past studies,
including a 2006 Royal Institute report by Micheal Peel (Chatham House,
2006) partly strongly evidence that landed properties in Nigeria is one of
the prime assets routinely used by looters of public treasury to launder
illicitly acquired wealth. In fact, of the uncertainty of similar findings,
suggestions to improve the supervision of land ownership and financial
markets needs to be taken very seriously (Onotoye, 2011). Nigeria has a
lot of people at home and in the Diaspora to assist in the efficient
management of available resources. It is only then that Nigeria can
reasonably be expected to seriously become the first black super power
that would be made a model for Africa in terms of democracy, education,

44
technology, social services, etc. as envisaged by Nigeria’s Founding
Fathers.

45
 CHAPTER THREE

3.1 RESEARCH METHODOLOGY

This topic, the effect of transparency on financial management and

accountability of local government in Nigeria is actually a vast study. At
least if we do recognize the uniqueness of local government council.

Though, there are much local government councils, the researcher has
restricted her choice to AbohMbaise Local Government Council.

This chapter discusses how data were sourced, the researcher, research
design, and population of the study, sample design and technique, source
of data collection, instrument of data collection, validity and reliability of
the instrument and method of data analysis.

This chapter is concerned with a more critical and fundamental meaning

of the method and procedure the researcher employed to bring the subject
of the matter into the scope of the research setting in order to yield result.
It also explains the method of administering questionnaire, design of the
study and the use in analysis and how the guiding aid finally reported.

The design of the study is the description of various processes to be

undertaken for the successful completion of the work.

The research is a descriptive survey research. The design will be used in

making decision on the data source/research instrument, sampling plan
and contact method. This is to enable the researcher obtain response and
draw analysis on the research problem.

46
3.2 POPULATION AND SAMPLE SIZE

Since the topic of the research centers on the effect of transparency on

financial management of Nigeria local government, performance and
study was taken from Aboh Mbaise local government in Imo state.

The population of the selected study. The population of the study, the
researcher decided it based on its own judgment randomly. Therefore, the
population of the study comprises of 108 staff in the selected departments
in Aboh Mbaise local government in Imo state.

3.3 SAMPLE TECHNIQUE

There is various sample technique that are selected, but a judgment

sampling technique was adopted which researcher relies on his or her
own judgment when choosing members of a population to participate in
the study.

In determining the sample design for the research work, the cost of
carrying out the work should be put into consideration, while the sample
should be large enough to achieve the goal, the desire of reliability and
accurate estimate. It should be nevertheless small enough to keep the
cost of data collected and processed as well as time needed to acquire
the data.

3.4 SOURCE/METHODOLOGY OF DATA COLLECTION

This involves the selection of the sample unit and sample procedures are
analyzed by the researcher. It also includes the source of data available

47
in the process of this study. Can be grouped into two such as primary and
secondary data.

Primary Source of Data: The primary data are sampling or study unit
regarding with information is to be collected on first-hand basis. This type
of data will be gathered from two data supplied by respondents of
questionnaire or interview. In essence, the primary data was collected by
communication which involved the questionnaire of respondents to serve
the desired information and personal observation.

SECONDARY Sources of DATA: The secondary data source to be utilized

for this research include study of relevant information contained in text
books, magazines, seminar papers, newspapers, journals, periodicals,
and revenue and expenditure returns of the local government. Other
sources are bulletins, government gazetteers and local government
financial memoranda. The above list is not exhaustive of all the sources
consulted for secondary data, but only gives an insight to the extent or
coverage made in reviewing experts’ assertions, especially while
reviewing related works accessed from universities and other public and
government agencies and private sources.

3.5 RESEARCH INSTRUMENT DESIGN

The research instrument adopted is of a quantitative nature through the

use of closed ended responses, personal survey. This is in order to attain
greater and quantifiable knowledge of the subject matter as well as to
examine possible correlations/relationship between independent
responses thereby helping in the processing and analyzing the data in
detail.

48
3.6 VALIDITY AND RELIABILITY OF MEASURING INSTRUMENT

The uniqueness of data sourced depends on validity and reliability of

measuring instrument applied for the purpose of the research work.

The following could be considered:

Questionnaires: It is one of the basic means of collection of primary data

in any research, although it is widely abused. The need for well-planned
questionnaires cannot be overemphasized in the successful completion.
A long list of questions designed to gather information from respondents
by filling answers.

Interviews: The researcher had preliminary interviews with some staff of

the council. This has to do with the research coming face to face. Sample
was kept at five (5). A structured open-ended and close ended type of
questionnaire were developed by the researcher and administered to the
staff of Ahiazu Mbaise local government council.

3.7 METHOD OF DATA ANALYSIS

Data related to this research work were analyzed in carrying out the study
using Chi-square method in testing the hypothesis formulated in
computed using the formula:

X² = Σ((O E)² / E)

Where X² = Chi-square

O = Observed frequency

E = Summation sign Σ
49
The computed X² will be compared with critical value (critical X²) at 5%
confidence which is (R 1)(C 1)

Where R = No of rows, C = No of columns.

Decision Rule

Accept the null hypothesis if the value of the chi-square calculated is less
than the table (critical) value. Otherwise, accept the alternative hypothesis
if the value of the chi-square is greater than the chi-square.

50
 APPENDIX

School of Business and Management

Technology,
Department of Accountancy,
P.M.B 1036,
Owerri, Imo State.

Dear Respondent,

QUESTIONNAIRES

I am a final year student of the abovementioned school and department. I

am carrying out research on the topic, “Effect of Accountability and
Transparency on Financial Management of Local Government in Nigeria
(A study of Ahiazu Mbaise Local Government Area)”

I would be most grateful if you could kindly complete the questionnaire

below by ticking (✓) in the appropriate option that best answers the
question. Your response will be strictly confidential and used only for
academic exercise.

Thanks for your cooperation.

Yours faithfully,

Anyalechi Modeline Chinonso

51
 CHAPTER FOUR

4.0 PRESENTATION AND ANALYSIS OF DATA

4.1 PRESENTATION OF DATA

The presentation of data is based on the questionnaire designed by the

researcher to distribute questionnaire to the respondent. It was distributed
to administrative management and internal budgeting in Aboh Mbaise
local government council in proportion to total number of (80) eight copies
of questionnaire administered. (40) forty copies were fully completed and
returned, while (26) twentysix copies were not completed and (14)
fourteen copies were not returned. This was because of time constraints.

Table 4.1 shows the analysis of Questionnaire administered and their

returns:

Questionnaire Number Percentage (%)

Administered 80 100

Only completed / Returned 40 50

Not Completed 26 32.5

Not Returned 14 17.5

52
4.2 ANALYSIS OF DATA

Question 1: What is your status?

Table 4.2: Analysis of response to Question 1

Options Department of Department Department Percentage

Administration of Planning, of
and finance research Investment
and Loans
statistics
Management
5 2 1 20
Staff
Senior
6 4 2 30
Executive
Junior
5 3 3 27.5
Executive
Clerical
4 1 4 22.5
Office
Total 20 10 10 100

Source: Field Survey 2023

The question above was posed to know the post the respondent occupies
in their local government to know the staffs in question are acquainted
with the local government activities especially as regards to accountability
and transparency of managing funds.

53
Question 2

Which department do you work?

Table 4.3: Analysis of response to Question Two

Department of Department of planning, Department of

administration and research, and statistics investment and loan
finance

Question 3

Accountability has put to check circumventing of due process in the

financial and nonfinancial activities of local government council in Nigeria.

Option Response Percentage (%)

Yes 45 81.8
No 10 18.2
Total 55 100

Source: Field Survey 2023

From the above table, 45 (fortyfive) persons responded positively that

accountability has put to check circumventing of due process in the
financial and nonfinancial activities of local government council in Nigeria,
which is 81.8%. While 10 (ten) persons, which is 18.2%, responded
negatively.

Question 4

The inhabitants of local government has benefited from the Proceeds of

accountability in improvement of social amenities.
54
Table 4.4: Analysis to Question 4

Proceeds of accountability in improvement of social amenities

Option Response Percentage (%)

Yes 43 78.2
No 12 21.8
Total 55 100

Source: Field Survey 2023

From the above table (4.4), forty-three persons responded positively that
the inhabitant of local government has benefited from the proceeds of
accountability in improvement of social amenities, while (12) responded
negatively.

Question 5

The process of accountability has affected the official and nonofficial

behavioural attributes of council.

Table 4.5: Analysis of Question 5

Option Response Percentage (%)

Yes 45 81.8
No 10 18.2
Total 55 100

Source: Field Survey 2023

55
From the above table (4.5), forty-five persons responded positively that
the process of accountability has affected the official and nonofficial
behavioural attributes of council, while (10) responded negatively.

Question 6

Accountability in financial management has improved the service

performance to staff in Aboh Mbaise local government, has affected the
official and nonofficial behavioural attributes of council.

Table 4.6: Analysis of Question 6

Accountability in financial management has improved the service

performance to staff in Aboh Mbaise local government and affected the
official and nonofficial behavioural attributes of council.

Option Response Percentage (%)

Yes 31 41.3
No 44 58.6
Total 75 100

Source: Field Survey 2023

From the above table (4.6), thirty-one persons responded positively that
accountability in financial management has improved the service
performance to staff and affected the official and nonofficial behavioural
attributes of council, while forty-four (44) responded negatively.

56
Question 7

The local government adhere strictly to accountability principle.

Table 4.7: Analysis of Question 7

Option Response Percentage (%)

Yes 32 41.6
No 45 58.4
Total 77 100

Source: Field Survey 2023

From the above table (4.7), thirty-two persons responded that the local
government adhere strictly to accountability principle, while forty-five (45)
responded negatively.

Question 8

Proper accountability in financial management is not necessary at Aboh

Mbaise local government management.

Table 4.8: Analysis of Question 8

Option Response Percentage (%)

Yes 43 57.3
No 32 42.6
Total 75 100

Source: Field Survey 2023

57
The table above shows that (43) forty-three persons responded positively
that proper accountability in financial management is not necessary and
good local government management, while (32) responded negatively.

Question 9

The asset and revenue are properly accounted for by the official of the
council

Table 4.9: Analysis of Question 9

Option Response Percentage (%)

Yes 20 36.3

No 35 63.7
Total 55 100

Source: Field Survey 2023

From the table above (20), twenty persons responded positively that the
asset and revenue are properly accounted for by the official of the council,
while (35) thirty-five responded negatively.

58
Question 10

It is necessary to improve the existing internal control system in the local

council

Table 4.10: Analysis of Question 10

Option Response Percentage (%)

Yes 34 50.7
No 33 49.3

Total 67 100

Source: Field Survey 2023

From the table above (34), thirty-four persons responded positively that it
is necessary to improve the existing internal control system the local
council.

Question 11

The performance in the local government has been effective

Table 4.11: Analysis of Question 11

Option Response Percentage (%)

Yes 22 40
No 33 60
Total 55 100

Source: Field Survey 2023

59
From the table above (22), twenty-two persons responded positively that
the performance in the local government has been effective while (33),
thirty-three responded negatively.

Question 12

The internal control system accomplished its practical value and

importance to the entire management and staff of the local government
council.

Option Response Percentage (%)

Yes 37 43.5
No 48 56.5
Total 85 100

Source: Field Survey 2023

From the table above (37), thirty-seven persons responded positively that
the internal control system accomplished its practical value and
importance to the entire management and staff of the local government
council while (48), forty-eight responded negatively.

Question 13

There have been frauds of serious nature in this council.

Table 4.13: Analysis of Question 13

Option Response Percentage (%)

Yes 24 42.9
No 32 57.1
Total 56 100

Source: Field Survey 2023

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From the table above (24), twenty-four persons responded positively that
there have been frauds of serious nature in the council while (32), thirty-
two persons responded negatively.

Question 14

Accountability and transparency on financial management are in

existence in the administrative of Aboh Mbaise local government.

Table 4.14: Analysis of Question 14

Option Response Percentage (%)

Yes 26 47.3
No 29 52.7
Total 55 100

Source: Field Survey 2023

The table above shows that (26), twenty-six persons responded positively
that accountability and transparency on financial management are in
existence in the administrative of Aboh Mbaise local government while
(29), Twentynine persons responded negatively.

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Question 15

Contractors in the council comply with the due process principle in

sourcing and executing contracts.

Table 4.15: Analysis of Question 15

Option Response Percentage (%)

Yes 24 43.6
No 31 56.4
Total 55 100

Source: Field Survey 2023

From the table above (24), twenty-four persons responded positively that
contractors in the council comply with the due process principle in
sourcing and executing contracts while (31), thirty-one responded
negatively.

Question 16

The respondent and percentage from responses to question 16

Table 4.16: Analysis of Question 16

Option Response Percentage (%)

Yes 31 46.3
No 36 53.7
Total 67 100

Source: Field Survey 2023

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4.4 TEST HYPOTHESIS

In testing the hypothesis, the researcher employed the use of chi-square

method (X²). The chi-square has its ability to give an accurate solution to
the problem. The hypothesis was tested using data collected from
questionnaire distributed to population sample.

Hence, this was tested at a level of 5% level of significance. It measures

compatibility between observed and is given by:

X² = Σ [(Oi Ei)² / Ei]

Where Oi = observed frequencies

Ei = expected frequencies

N = No of categories considered

X² = Chi-square

Σ = Summation

HYPOTHESIS 1

H0: Accountability and transparency have no significant effect on curbing

the circumvention of financial and administrative activities in local
government council.

H1: Accountability and transparency have significant effect on curbing the

circumvention of financial and administrative activities in local government
council.

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In order to test the hypothesis 1, two questions were selected as the
Question 3 & 8 from the analysis distributed.

Option Question 3 Question 8 Total

Yes 45 43 88
No 10 32 42
Total 55 75 130

DETERMINATION OF EXPECTED FREQUENCIES

Ei = (row total × column total) / grand total

Question 3

Yes = (55 × 88) / 130 = 37

No = (75 × 88) / 130 = 51

Question 8

Yes = (55 × 42) / 130 = 18

No = (75 × 42) / 130 = 24

Calculation of Chi-square (x²) for 1st hypothesis

Oi Ei Oi - Ei (Oi - Ei)² (Oi - Ei)² / Ei

45 37 8 64 1.729
43 51 8 64 1.254
10 18 8 64 3.555
32 24 8 64 2.667
Total 9.205
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To calculate the degree of freedom (DF)

DF = (r 1)(c 1)

= (2 1)(5 1)

= (1)(4)

=4

Hence, critical value (X² 0.05) = 3.841

Note: 3.841 is gotten by checking the degree of freedom (1) under 0.95
(i.e., 1 0.05) in the chi-square table.

Decision rule

From the decision rule, using Question 3 and 8 to test the hypothesis 1.
The x² = 9.205 > Critical value 3.841.

We reject the null hypothesis and accept the alternative hypothesis that
Accountability and Transparency have significantly effect on curbing the
circumvention of financial and administrative activities in the local
government council.

HYPOTHESIS 2

H02: Accountability and transparency have not significantly improved

social amenities for residents of local government areas.

H12: Accountability and transparency have significantly improved social

amenities for residents of local government areas.

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To test the hypothesis II, two (2) questions were selected, as the question
4 and 6 from the analytical analysis distributed.

Option Question 4 Question 6 Total

Yes 43 31 74
No 12 44 56
Total 55 75 130

Determination of the Expected Frequencies

Ei = (row total × column total) / grand total

Question 4

Yes = (55 × 74) / 130 = 31

No = (75 × 74) / 130 = 43

Question 6

Yes = (55 × 56) / 130 = 24

No = (75 × 56) / 130 = 32

Calculation of Chi-square (x²) for 2nd hypothesis

Oi Ei Oi - Ei (Oi - Ei)² (Oi - Ei)² / Ei

43 31 12 144 4.645
31 43 12 144 3.349
12 24 12 144 6.000
44 32 12 144 4.500
Total 18.494

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Decision Rule

From the decision rule, using Question 4 and 6 to test the hypothesis II,

The χ² = 18.494 > Critical value 3.841

We reject the null hypothesis and accept the alternative hypothesis that
Accountability and transparency have significantly improved social
amenities for residents of local government area.

HYPOTHESIS 3

H03: Accountability and transparency do not significantly influence the

financial behaviour and attitudes of council staff.

H13: Accountability and transparency significantly influence the financial

behaviour and attitudes of council staff.

Two (2) questions were selected to test the hypothesis III which are
question 7 and 9 from the analysis distributed.

Option Question 7 Question 9 Total

Yes 30 20 50

No 45 35 80

Total 77 55 130

Determination of Expected Frequencies

Ei = (row total × column total) / grand total

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Question 7

Yes = (77 × 50) / 130 = 30

No = (55 × 50) / 130 = 21

Question 8

Yes = (77 × 80) / 130 = 47

No = (55 × 80) / 130 = 34

Calculation of chi-square (χ²) for 3rd hypothesis

Oi Ei Oi - Ei (Oi - Ei)² (Oi - Ei)² / Ei

30 30 0 0 0.000
20 21 1 1 0.048
45 47 2 4 0.085
35 34 1 1 0.029
Total 0.162

Decision Rule:

From the decision rule, using Question 7 and 9 to test the hypothesis III,

The χ² = 0.162 < Critical value 3.841

We accept the null hypothesis and reject the alternative hypothesis that
Accountability and transparency have significantly influenced the financial
behaviour and attitude of council staff.

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 CHAPTER FIVE

5.0 SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY OF FINDINGS

In line with the objective of the research work is essentially concerned with
minimization, the researcher has studied the effect of accountability and
transparency on financial management of Nigeria (a case of Aboh Mbaise
local government as study).

The purpose of this study therefore is to bring to the knowledge of the

local government chairmen on how to keep accountability of financial
management and also help them to improve in their decision making and
seek alternative whenever there is need for it. This will greatly help them
in their effort to make sure that local government in Nigeria are
outstanding.

The following findings were made from the data that was tested:

Local government council has adopted accountability as a good check

with help of due process in financial and nonfinancial activities which is
capable of producing desired best.

The inhabitant within the local government council have benefited from
the due process of accountability, transparency in improvement of
social amenities.

The process of accountability has affected the official and nonofficial

financial behavioural attitude of council staff in Nigeria.

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5.3 CONCLUSION

Despite the likelihood that the introduction of EFCC, ICPC and due
process in the system of government for proper accountability and
financial management of Nigeria local government council — the
management of the local needs to make sure a lot of measures in place
for proper accountability to include the following:

The staff of the council, especially the chairmen, should be audited by the
external auditors yearly to identify vacate from their office for proper
accountability.

The staff of the council should be adequately motivated to detach their

mind from any corrupt practice.

The council should make sure that revenue collection of its should be
contracted out; proper returns should be made known at end.

Training and retraining programmes and seminars should be organised

periodically for the members and staff of the council to increase their
mindset and ensure efficiency and effectiveness in doing their work.

The research work was painstakingly conducted to educate people the

importance of proper accountability. There is need for proper supervision
of the council staff and officials to ensure that they are effectively and
efficiently well managed in line with the constitution adopted for the local
government council in the country.

This research has gone further to discourage any council that have a weak
internal control system and capable hands to enforce the existing one.

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5.4 RECOMMENDATION

After more careful evaluation of transparency in financial management

and accountability in Nigerian local government council and having seen
the adverse effect of improper accountability in the government system to
remain silent over, these will endanger the needed development of
property in the local government in the country.

In the light of this, the following recommendation was made based on my

findings during the research work:

i) First and foremost, the recommendation is to advise readers to...

ii) The accounting working system of the council should be
computerized since most of the system is done manually.
iii) There should be adequate sensitization through workshop,
seminars and lectures on the need for transparency and
accountability in the government system.
iv) The research equally recommended that the staff employed to man
sensitive positions like cashier, account clerk, etc., to mention but a
few should be qualified with a qualification not less than [Link]. or
HND in the relevant profession.
v) The government should build an inhouse ICPC force, so the due
process office in all the local government council. This will go a long
way to deter any fraudulent practices which can lead to improper
accountability in the system.
vi) The state government in conjunction with the federal government
should make sure that the accounts of the local government should
make sure that the accurate PPS of the local government are

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 audited periodically and monitored by them. This will go a long way
in reducing corruption in the society.

Finally, the salaries and other fringe benefits of the staff of the council
should be paid as when due in order to reduce any fraud, red practice and
bridge the gap for an effective and efficiency, transparency and
accountability in the government system.

The conclusion drawn from this study should not be considered to be final.
There is need for further research, other local government councils in
Nigeria in the field investigations make on proper accountability in the
government system.

REFERENCES

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