Effect of Whistleblowing Mechanisms on Tax Remittances Fraud Prevention of Ministries, Departments and Agencies (MDAS) in Northeast Nigeria

This study investigates the effect of whistleblowing mechanisms on tax remittance fraud prevention among Ministries, Departments, and Agencies (MDAs) in Northeast Nigeria. The study is grounded in the Fraud Triangle Theory, which posits that fraud is most likely when perceived pressure, opportunity, and rationalization co-exist. The research addresses a critical gap in existing literature by focusing on whistleblowing as a strategic tool to prevent tax remittance fraud in public institutions, particularly in conflict-prone and institutionally fragile regions. Utilizing a survey research design, data were collected from 290 tax personnel in 259 MDAs across six Northeastern states. The study employed regression analysis using SPSS Version 23 to determine the statistical relationship between whistleblowing mechanisms and fraud prevention. Results indicate a strong positive correlation (r = 0.667, p < 0.01) between effective whistleblowing structures and reduced tax fraud incidents. The regression analysis further revealed that whistleblowing mechanisms significantly contribute to enhancing transparency and accountability in tax remittance processes. However, multicollinearity was detected, suggesting some overlap with other anti-fraud strategies. The study concludes that institutionalized whistleblowing, supported by legal protection and cultural shifts, is essential to reducing tax fraud in Nigeria’s public sector. It recommends strengthening whistleblower protection laws, increasing public awareness and embedding whistleblowing frameworks into the financial architecture of MDAs. Future research should explore whistleblowing in other public sectors, assess long-term impact, and include comparative studies with other regions for broader insights.