EFFECT OF PUBLIC FINANCIAL MANAGEMENT PRACTICES ON FISCAL ACCOUNTABILITY IN FEDERAL GOVERNMENT AGENCIES IN NIGERIA

Abstract

The increasing demand for transparency and efficient use of public resources in Nigeria has heightened the relevance of effective Public Financial Management (PFM) practices in promoting fiscal accountability. This study investigates the effect of PFM components budget planning, budget implementation, internal control systems, public procurement practices, cash management, and financial reporting compliance on fiscal accountability within federal government agencies in Nigeria. The sample comprised 200 financial management personnel drawn from five federal agencies. Using quantitative research design, data were collected through structured questionnaires and analysed using Structural Equation Modeling (SEM). Fiscal accountability served as the dependent variable, while the six PFM practices functioned as independent variables. Findings reveal that all PFM practices significantly and positively influence fiscal accountability, with budget planning and public procurement practices exerting the strongest effects. The study recommends that federal agencies strengthen budget planning processes, enhance procurement transparency, improve budget execution monitoring, reinforce internal control systems, optimize cash management practices, and promote strict compliance with financial reporting standards. These measures will improve fiscal governance, ensure responsible stewardship of public funds, and restore public trust in Nigeria's federal institutions.

Keywords: Budget Implementation, Budget Planning, Cash Management, Financial Reporting Compliance, Fiscal Accountability, Internal Control System, Public Procurement