MODERN FINANCIAL MANAGEMENT PRACTICES AND FRAUD MITIGATION IN THE PUBLIC SECTOR: THE NIGERIAN EXPERIENCE

Abstract

This study examined the impact of modern financial management practices on fraud mitigation in the Nigerian public sector, focusing on federal government parastatals operating in Edo State. The study specifically assessed the effectiveness of the Treasury Single Account (TSA), Integrated Payroll and Personnel Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS) in reducing fraudulent activities and improving financial transparency. A descriptive survey research design was adopted, and structured questionnaires were administered to staff in the accounting, audit, and budget departments of selected federal MDAs. Data collected were analyzed using descriptive statistics and multiple regression analysis. The findings revealed that all three financial management reforms—TSA, IPPIS, and GIFMIS—have significant positive effects on fraud mitigation, with IPPIS exhibiting the strongest influence. The regression model showed an R value of 0.899 and an R² of 0.808, indicating that 80.8% of the variation in fraud mitigation is explained by the combined effect of the independent variables. The study concludes that modern financial management practices play a crucial role in enhancing accountability and reducing fraud in Nigeria’s public sector. It recommends strengthening compliance with TSA, expanding IPPIS coverage, enhancing GIFMIS functionality, and investing in capacity building and digital infrastructure to sustain improvements in public financial integrity