The role of forensic accounting in addressing procurement fraud in Nigeria: A case study of Lagos State Government
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Background of the Study
Forensic accounting plays a critical role in detecting and preventing fraudulent activities, especially in public sector procurement. In Nigeria, procurement fraud is a persistent issue that hampers economic growth and development. Fraudulent practices such as inflated contract values, bribery, and kickbacks are common in government procurement, contributing to financial mismanagement and corruption (Ogunleye & Okafor, 2023). Lagos State, being one of the largest states in Nigeria, has experienced significant procurement fraud, leading to the loss of public funds that could have been used for development projects. The need for effective measures to address this issue has brought forensic accounting into focus as a tool for identifying and investigating fraudulent activities in procurement processes (Alabi, 2024).
Forensic accounting involves the use of accounting principles and investigative techniques to detect and prevent fraud (Adewale, 2025). The forensic accountant examines financial records, conducts interviews, and uses analytical tools to uncover fraudulent activities. By employing forensic accounting techniques, public institutions like the Lagos State Government can minimize procurement fraud, ensuring that taxpayers' money is used appropriately. Recent studies have shown that forensic accounting has contributed significantly to the identification and prevention of fraud in procurement across various government institutions in Nigeria (Ogunleye & Okafor, 2023). However, despite its importance, forensic accounting practices remain underutilized in many Nigerian states.
In Lagos State, despite the existence of anti-corruption policies, procurement fraud continues to undermine government projects and public trust. The role of forensic accounting in detecting, investigating, and prosecuting fraud in procurement processes has not been thoroughly examined. This research, therefore, aims to assess how forensic accounting practices are used to address procurement fraud in Lagos State, offering insights into their effectiveness, challenges, and possible improvements.
Statement of the Problem
Procurement fraud in Nigeria has been a significant challenge, particularly in government institutions, where funds meant for developmental projects are often misappropriated (Alabi, 2024). Despite the establishment of various anti-corruption policies and initiatives, procurement fraud continues to persist, significantly impacting the efficiency and effectiveness of government procurement. Lagos State, being a focal point for public sector development, has witnessed numerous instances of procurement fraud, which has raised concerns about the transparency and accountability of public expenditure. The lack of sufficient forensic accounting practices to investigate and uncover fraudulent activities in the procurement process has further exacerbated the situation.
The problem of procurement fraud in Lagos State can be attributed to inadequate implementation of forensic accounting practices, insufficient capacity building for accountants, and weak regulatory oversight. Previous studies have highlighted that forensic accounting practices are often overlooked or poorly implemented in government procurement (Ogunleye & Okafor, 2023). This gap in forensic accounting practices has resulted in delayed projects, inflated costs, and loss of public funds, which ultimately hampers the growth of the state. Therefore, it is crucial to investigate the role of forensic accounting in addressing procurement fraud in Lagos State and identify the barriers to effective implementation.
This study seeks to evaluate the use of forensic accounting techniques in Lagos State's procurement processes and their impact on fraud detection, prevention, and prosecution. It also aims to explore the challenges faced by forensic accountants in the public sector and recommend strategies to improve the efficiency of forensic accounting practices in procurement fraud cases.
Objectives of the Study
- To assess the role of forensic accounting in detecting procurement fraud in Lagos State Government.
- To examine the effectiveness of forensic accounting practices in preventing procurement fraud in Lagos State.
- To identify the challenges faced by forensic accountants in investigating procurement fraud in Lagos State Government.
Research Questions
- How effective is forensic accounting in detecting procurement fraud in Lagos State Government?
- What are the challenges faced by forensic accountants in addressing procurement fraud in Lagos State?
- To what extent do forensic accounting practices contribute to preventing procurement fraud in Lagos State Government?
Research Hypotheses
- There is a significant relationship between forensic accounting practices and the detection of procurement fraud in Lagos State Government.
- The effectiveness of forensic accounting practices is influenced by the challenges faced by forensic accountants in Lagos State.
- Forensic accounting practices significantly reduce procurement fraud in Lagos State Government.
Scope and Limitations of the Study
The study will focus on the use of forensic accounting practices in detecting and preventing procurement fraud in the Lagos State Government. The research will specifically examine procurement processes and fraud cases within various government ministries and departments in Lagos State. While the study aims to provide valuable insights into the effectiveness of forensic accounting in public procurement, it is limited to the Lagos State Government and does not extend to other states or the federal government.
The study will primarily rely on interviews with forensic accountants, government officials, and relevant stakeholders in Lagos State. However, there may be limitations in accessing sensitive information related to procurement fraud cases due to confidentiality concerns. Additionally, the study's findings may be influenced by the availability and reliability of data from the government agencies involved.
Definitions of Terms
- Forensic Accounting: A specialized field of accounting that involves the application of investigative skills and techniques to detect, prevent, and investigate fraud and financial irregularities (Adewale, 2025).
- Procurement Fraud: The act of dishonestly obtaining government contracts or inflating contract values through illegal means, including bribery, kickbacks, and misrepresentation (Alabi, 2024).
- Lagos State Government: The government responsible for the administration and governance of Lagos State, Nigeria, which includes managing public procurement processes and projects.
- Public Procurement: The process by which public sector entities acquire goods, services, or works from private contractors through a bidding and contracting process (Ogunleye & Okafor, 2023).
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