Background of the Study
Financial mismanagement in government institutions has been a long-standing challenge in Nigeria, with far-reaching implications for public service delivery and national development (Umaru et al., 2023). Kaduna State, one of Nigeria's major urban centers, has experienced its share of financial management issues within various government departments and institutions. These challenges not only affect the effectiveness of government spending but also hinder the state’s development goals. Effective financial management in government institutions is vital to ensure accountability, transparency, and the optimal use of public funds for social services such as healthcare, education, and infrastructure development (Bello & Aliyu, 2024).
The Nigerian public sector has been plagued by issues such as budget misallocation, corruption, lack of proper financial controls, and inadequate financial reporting (Dandago et al., 2025). These issues are particularly pronounced in Kaduna State, where several government institutions struggle with poor financial planning, inefficiencies in budget execution, and the misappropriation of funds (Waziri & Umar, 2024). Additionally, inadequate training of public sector financial managers and weak institutional frameworks exacerbate the problem of financial mismanagement.
This study aims to analyze the causes and consequences of financial mismanagement in government institutions within Kaduna State, identifying the factors that contribute to this persistent problem. It also seeks to assess the impact of these issues on public service delivery and propose solutions for improving financial management in the public sector.
Statement of the Problem
Financial mismanagement in government institutions is a pervasive problem in Kaduna State, as inadequate financial controls, corruption, and poor financial reporting mechanisms continue to undermine public sector efficiency (Yakubu & Akinwale, 2024). Mismanagement of funds leads to inefficiencies in the delivery of public services, delays in infrastructure projects, and a lack of trust in government institutions. Public sector institutions in Kaduna State often face challenges such as lack of accountability in the use of funds, over-expenditure, and fraudulent practices, which ultimately diminish their ability to achieve their development goals (Muhammad & Bala, 2025).
Given the importance of government institutions in fostering development, understanding the causes and implications of financial mismanagement is critical to ensuring that public funds are used efficiently and effectively. This study will focus on Kaduna State’s public sector, examining the financial mismanagement challenges faced by government institutions and proposing solutions to address these issues.
Objectives of the Study
To examine the causes of financial mismanagement in government institutions in Kaduna State.
To assess the impact of financial mismanagement on public service delivery in Kaduna State.
To propose recommendations for improving financial management in government institutions in Kaduna State.
Research Questions
What are the main causes of financial mismanagement in government institutions in Kaduna State?
How does financial mismanagement affect the delivery of public services in Kaduna State?
What strategies can be implemented to improve financial management in government institutions in Kaduna State?
Research Hypotheses
Financial mismanagement in government institutions negatively impacts public service delivery in Kaduna State.
The lack of proper financial controls and accountability mechanisms contributes significantly to financial mismanagement in government institutions in Kaduna State.
Implementing stricter financial regulations and training programs for financial managers will reduce financial mismanagement in Kaduna State's public sector institutions.
Scope and Limitations of the Study
The study will focus on government institutions in Kaduna State, particularly those involved in key public services such as education, healthcare, and infrastructure. Limitations include access to sensitive financial data and the potential reluctance of public sector employees to disclose mismanagement practices. The study will also exclude local government institutions to narrow its focus to state-level entities.
Definitions of Terms
Financial Mismanagement: The improper use or handling of public funds, including over-expenditure, fraud, and inefficiencies in the allocation and spending of resources.
Public Service Delivery: The provision of essential services such as healthcare, education, and infrastructure by government institutions.
Government Institutions: Public organizations and agencies responsible for the administration and implementation of government policies and programs.