BABATUNDE AFEEZ SAKA
DEPARTMENT OF MARKETING,
OSUN STATE POLYTECHNIC. IREE
Abstract
This study investigates the effects of financial controls on financial management in Nigeria’s public sector, with a specific focus on agencies of the Federal Government located outside the Federal Capital Territory (FCT). Financial controls — including budgetary control, internal audit systems, procurement regulations, Treasury Single Account (TSA) systems, and cash‐flow monitoring — are posited to improve transparency, accountability, efficiency and value‐for‐money in public sector financial management. The research employs a mixed-method approach, combining secondary document review of federal agencies’ audited financial statements and control reports from 2015–2023 with semi-structured interviews of financial management staff in selected agencies outside Abuja. The findings indicate that robust financial control systems significantly contribute to reductions in budget variances, improved compliance with procurement regulations, enhanced cash management and better financial reporting. However, challenges remain, such as weak internal audit capacity, political interference, delayed funds release and inadequate human resources. The article concludes that strengthening financial controls is essential for improved public financial management in Nigeria and recommends reforms around audit independence, capacity building, digital control systems and enforcement of sanctions on breaches. The study contributes to policy discourse by providing empirical evidence on control–management linkages in the federal public sector beyond the capital.
Keywords: Financial controls; Financial management; Public sector; Federal Government of Nigeria; Accountability; Budgetary control.
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