GOVERNMENT PROCUREMENT PRACTICES AND FINANCIAL ACCOUNTABILITY IN THE NIGERIAN PUBLIC SECTOR

Abstract

Public procurement is a critical driver of global economic activity and national development, yet in Nigeria, it remains plagued by systemic inefficiencies and financial leakages. This study evaluated the relationship between government procurement practices and financial accountability in the Nigerian public sector, focusing on Ministries, Departments, and Agencies (MDAs) in Lagos State. The study population consisted of 1200 staff drawn from procurement, finance, and internal audit departments. Using the Taro Yamane formula, a sample size of 300 respondents was determined, out of which 291 valid responses were obtained and used for analysis. Adopting a descriptive survey research design, data were collected through a structured questionnaire. The findings revealed that while there is high procedural compliance with the Public Procurement Act (PPA) of 2007, a "compliance gap" persists with political interference often subverts the spirit of the law. Descriptive and inferential analyses demonstrated that electronic procurement (e-procurement) is an effective tool for structural transparency, significantly reducing physical contact and "ghost" contractor involvement. Hypothesis testing via simple linear regression at 0.05 level of significance confirmed that institutional oversight by the Bureau of Public Procurement (BPP) is the most influential factor in preventing contract inflation and project abandonment (r = 0.810, p < 0.05). However, a significant "protection gap" exists, as competent professionals struggle to resist pressure to inflate project estimates. The study concludes that achieving total financial accountability requires a clear separation between political patronage and technical procurement processes, alongside stronger institutional independence for oversight bodies.