EFFECT OF PUBLIC SECTOR FINANCIAL REFORMS ON ECONOMIC GROWTH IN NIGERIA

Abstract

The objective of Nigeria's public financial reforms, which include the Treasury Single Account (TSA) and the Integrated Payroll and Personnel Information System (IPPIS), is to promote accountability, transparency, and economic growth. However, persistent misappropriation of funds by officials continues to hinder savings, investment, and the overall economic advancement of the nation. Consequently, this research investigates the impact of public sector financial reforms on Nigeria's economic growth. Employing a descriptive research design, the study utilized monthly time series data sourced from the Statistical Bulletin of the Central Bank of Nigeria (CBN) covering the years 2016 to 2023. Regression analysis was conducted using Eviews software to analyzed the data. The study found that treasury single account has positive and significant effect on GDP in Nigeria at 5% level of significant. While, integrated payroll and personnel information system and public financial accountability index have positive but insignificant effect on GDP in Nigeria at 5% level of significant. The study concludes that public sector financial reforms do indeed affect economic growth in Nigeria. Therefore, it is recommended that the Nigerian government address existing implementation deficiencies and broaden the operational scope of these systems. This can be accomplished by extending the coverage of IPPIS to all government agencies, enhancing data accuracy, and integrating it with comprehensive fiscal management frameworks. Additionally, the government should intensify efforts to fortify public financial accountability mechanisms and ensure adherence to financial transparency standards. This can be achieved by improving public access to financial information, conducting regular audits, and strengthening the capabilities of institutions tasked with public financial accountability.