EFFECTS OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS
ADOPTION ON PUBLIC SECTOR FINANCIAL MANAGEMENT IN NIGERIA

Collins O. Nwade 1 , Ogechi E. Alpheaus 2 , Ndukwe O. Dibia 3 and John U. Ihendinihu 4
1&3 Department of Accountancy,
Faculty of Business Administration
Abia State University, Uturu, Nigeria.
nwadecollins1@gmail.com & nodibia2006@yahoo.com
and
2&4 Department of Accounting,
College of Management Sciences,
Michael Okpara University of Agriculture, Umudike
Alpheausogechieberechi@gmail.com & ihendinihu.john@gmail.com

This study assesses the effects of International Public Sector Accounting Standards (IPSAS)
adoption on public sector financial management in Nigeria. The objective is to evaluate the
effectiveness of IPSAS in enhancing debt management, fiscal discipline and curbing corruption
in the Nigerian public sector. Quasi experimental research design was adopted. Time series
data on the three identified proxies for evaluating public sector accountability were collected
from the Central Bank of Nigeria Statistical Bulletin and official reports of Transparency
International to cover two periods – 2010 to 2013 for the Pre-IPSAS adoption and 2014 to
2019 for the Post-IPSAS adoption eras. Independent sample t-test was used to compare the pre
and post IPSAS adoption figures on public debt, corruption perception index and fiscal
discipline in the sector, with triangulation provided through regression technique for
robustness check. Results indicate that the mean public debt and corruption perception index
figures were higher, while fiscal discipline deteriorated more, during the post adoption period
than was observed before the adoption. Empirical tests reveal that public debt and fiscal
discipline figures between the two periods differed significantly, but differences in corruption
indices were not statistically significant. The paper concludes that the adoption of IPSAS in
Nigeria has not sufficiently addressed the problems of fiscal indiscipline, increasing public
debt profile and the scourge of corruption in the economy, and recommends strategies for
leveraging on global best practices in dealing with challenges in public sector financial
management so as to generate the needed transformation for sustainable economic growth in
Nigeria.
Keywords: International Public Sector Accounting Standards, accountability, corruption,
public debt management, fiscal discipline

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