IMPACT OF ACCRUAL BASED ACCOUNTING ADOPTION ON FISCAL ACCOUNTABILITY IN NIGERIAN MINISTRIES.

This study examined the impact of accrual-based accounting adoption on fiscal accountability in Nigerian ministries, with particular focus on the dimensions of financial reporting quality and asset and liability recognition. The study employed a descriptive survey research design, targeting accounting and finance personnel across selected federal ministries in Nigeria. A sample of 150 respondents was drawn using stratified random sampling, and primary data were collected through a structured questionnaire using a five-point Likert scale. Descriptive statistics were used to summarize respondents’ perceptions, while multiple regression analysis was employed to test the relationship between accrual-based accounting adoption and fiscal accountability. The findings reveal that accrual-based accounting adoption significantly enhances fiscal accountability in Nigerian ministries. Specifically, financial reporting quality was found to improve transparency, while proper recognition of assets and liabilities strengthened budgetary compliance and internal controls. Regression results showed that accrual accounting adoption explains 61% of the variation in fiscal accountability (R² = 0.61, F = 204.94, p < 0.05), indicating a strong and statistically significant effect. The study concludes that adopting accrual-based accounting is a critical mechanism for promoting responsible financial management and accountability in the Nigerian public sector. Based on the findings, the study recommends full implementation of accrual accounting across ministries, continuous staff training, and investment in ICT infrastructure, strengthened internal controls, and supportive regulatory oversight.