Background of the Study
Subsidy programs are essential mechanisms used by governments worldwide to cushion the economic burden on citizens by reducing the cost of essential goods and services. In Nigeria, the fuel subsidy scheme has been a major policy initiative aimed at stabilizing fuel prices and ensuring affordability for consumers. However, the management of the scheme has been plagued by inefficiencies, corruption, and a lack of transparency, leading to substantial revenue losses for the government (Adesina & Olagunju, 2023).
Government accounting plays a critical role in the management of subsidy programs by ensuring accurate recording, monitoring, and reporting of financial transactions. Effective accounting practices are vital for tracking subsidy expenditures, preventing fraud, and promoting accountability. Despite the introduction of reforms such as the Petroleum Industry Act (PIA), the fuel subsidy scheme continues to face challenges, highlighting systemic gaps in government accounting practices (Ibrahim & Yusuf, 2024). This study evaluates the role of government accounting in managing Nigeria’s fuel subsidy scheme, with a focus on its impact on transparency and efficiency.
Statement of the Problem
The Nigerian fuel subsidy scheme has been marred by allegations of financial mismanagement, over-invoicing, and fraud, costing the government billions of naira annually. Weaknesses in government accounting systems, including poor oversight and inadequate reporting mechanisms, exacerbate these issues (Okonkwo & Bello, 2025).
While reforms have aimed to address these problems, their effectiveness remains limited due to inconsistent implementation and political interference. This study seeks to evaluate the role of government accounting in addressing these challenges, identifying areas for improvement in the management of the fuel subsidy scheme.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
The study focuses on the Nigerian fuel subsidy scheme, examining the role of government accounting between 2015 and 2024. Limitations include restricted access to detailed subsidy records and potential biases in respondent feedback.
Definition of Terms
Transparency: Open and accountable management of public resources.
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