EFFECT OF PUBLIC SECTOR FINANCIAL REFORMS ON ECONOMIC GROWTH IN NIGERIA

HARRISON SUNDAY VINCENT, JOHN TORO GIMBA, DAUDA MADAKI

Abstract


The study examines effect of public sector financial reforms on economic growth in Nigeria between 2016 to 2022. Ex post-facto research design was used. Monthly time series data were extracted from the Central Bank of Nigeria's statistical bulletin and ARDL estimation was used based on the unit root test result. The dependent variable was gross domestic product, while the independent proxies were treasury single account (TSA) and integrated payroll and personnel information system (IPPIS). The results found that public sector financial reforms had a long run relationship with economic growths in Nigeria. Based on the findings, it was found that the treasury single account had significant effect on gross domestic product in Nigeria. Also, the integrated payroll and personnel information system had no significant effect on gross domestic product in Nigeria. Therefore, it was recommended that Government should adhere to the provisions of Section 162(1) of the Constitution of the Federal Republic of Nigeria (as amended) for the maintenance of Federation accounts. Furthermore, government should also overhaul the capacity of the Federal Ministry of Finance and the CBN to cope with challenges associated with enforcement of the provisions of the TSA. Also, government should strengthen the internal control mechanism of IPPIS so as to continuously detect and block any loopholes that will give room for fraud; with regular audit and inspection of the program so as to ensure strict compliance with laid down rules and regulations governing the operation of IPPIS as well as compliance with the provisions of Financial Regulations and the Civil Service Rule.

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