EFFECT OF GOVERNMENT INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM IMPLEMENTATION ON FINANCIAL GOVERNANCE IN SELECTED MINISTRIES, DEPARTMENTS, AND AGENCIES IN NIGERIA

Abstract

Financial governance entails the systems, structures, and processes that guide the effective management of financial resources. It includes oversight of financial transactions, operations, compliance, and risk management, supported by sound policies on Budget Preparation Processes, Accounting, Internal Controls, and Expenditure Management. In pursuit of improved financial governance, the Nigerian government leveraging on Information and Communication Technology (ICT) introduced the Government Integrated Financial Management Information System (GIFMIS) as a key reform initiative. This study examines the Effect of GIFMIS Implementation on Financial Governance in selected Ministries, Departments, and Agencies (MDAs) in Nigeria. The study specifically investigates how six core GIFMIS modules—Budget Preparation, Budget Execution, Human Resource, Accounting, Master Data, and Reporting—affect Financial Governance outcomes. A descriptive survey research design was adopted, and primary data were obtained from 140 purposively selected staff engaged with GIFMIS as users' / role players in MDAs across Nigeria's North Central region. Data analysis employed descriptive statistics, Pearson correlation, and multiple regression using SPSS. The findings reveal that some modules significantly influence financial governance, with Budget Execution and Human Resource exhibiting the most substantial positive effects. However, Budget Preparation, Accounting, Master Data and Reporting modules were identified as needing further optimization being that they were yet to be fully deployed to MDAs. The study recommends review and upgrade of other GIFMIS Modules, integrate full deployments of functionalities for effective utilization, targeted capacity building, enhancement of data integrity measures, improved infrastructure, and continuous monitoring to strengthen GIFMIS implementation. The research contributes to the understanding of ICT-driven financial reforms and provides actionable insights for policymakers and practitioners committed to enhancing transparency, accountability, and efficiency in Nigeria's financial management.

Keywords: GIFMIS, Financial Governance, Budget Preparation / Execution, Transparency, Accountability.