Background of the Study
Subsidy programs are critical tools for supporting economic development and improving the livelihoods of citizens. In Nigeria, fertilizer subsidies are designed to enhance agricultural productivity and ensure food security. However, these programs have been plagued by inefficiencies, corruption, and significant financial leakages, undermining their intended impact (Ahmed & Yusuf, 2023).
Government accounting plays a vital role in reducing leakages by ensuring accurate financial reporting, monitoring fund disbursement, and promoting transparency. Despite reforms aimed at improving subsidy program management, such as the adoption of the Integrated Financial Management Information System (IFMIS), challenges persist. This study evaluates the effectiveness of government accounting in reducing leakages in Nigeria’s fertilizer subsidy programs, identifying areas for improvement.
Statement of the Problem
Fertilizer subsidy programs in Nigeria have been criticized for inefficiencies, including the diversion of funds, lack of transparency, and mismanagement. These issues result in significant financial leakages, reducing the program's effectiveness in supporting farmers and achieving agricultural goals (Oluwatobi et al., 2024).
Although government accounting systems are intended to address these challenges, their effectiveness in reducing leakages remains questionable. This study investigates the role of government accounting in minimizing leakages in fertilizer subsidy programs, focusing on the gaps and opportunities for improvement.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
This study focuses on the effectiveness of government accounting in reducing leakages in Nigeria’s fertilizer subsidy programs, covering the period from 2010 to 2025. It examines financial reporting, fund disbursement, and monitoring practices. Limitations include restricted access to detailed financial data and the sensitivity of information related to corruption cases.
Definitions of Terms