Consequences of Non-Compliance in Finance: A Study on Nigerian Public Financial Management
The consequences of non-compliance in finance are a crucial aspect of Nigerian public financial management, with far-reaching implications for the country’s economic and political stability. In recent years, Nigeria has witnessed a plethora of fiscal irregularities, ranging from budget padding to embezzlement of public funds. This article seeks to examine the role of consequence management in curbing these infractions.
The Role of Institutions in Overseeing Compliance
Budget Office of the Federation
The Budget Office of the Federation plays a vital oversight role in ensuring compliance with fiscal rules and norms. However, despite its efforts, the office has been criticized for being too soft on erring officials.
Office of the Auditor General of the Federation
The Office of the Auditor General of the Federation is also expected to provide critical oversight, but its inability to effectively probe financial irregularities has raised concerns.
The National Assembly’s Oversight Duties
The National Assembly, which is constitutionally empowered to scrutinize public expenditure, has often been accused of being lackadaisical in its oversight duties.
The Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC)
The EFCC and ICPC, which are statutorily mandated to investigate and prosecute financial crimes, have also been criticized for their slow pace of investigation and prosecution.
Administration of Justice
The administration of justice is equally critical in ensuring that those who breach public finance regulations face the consequences. However, the judiciary has often been accused of being slow in dispensing justice, with cases taking years to conclude.
Conclusion
While there are various institutions and entities responsible for overseeing compliance with fiscal rules and norms in Nigeria, the absence of effective consequence management has hindered efforts to curb financial infractions. It is imperative that these institutions work together to ensure that those who breach public finance regulations face the consequences, thereby promoting good governance and transparency in Nigerian public financial management.
Recommendation
To achieve this goal, it is recommended that:
- Institutions responsible for overseeing compliance with fiscal rules and norms collaborate more effectively to share information and coordinate efforts.
- The judiciary prioritizes the speedy dispensation of justice in cases related to financial infractions.
- There is a need for stronger penalties and sanctions for those who breach public finance regulations.
- Public education campaigns are conducted to raise awareness about the importance of compliance with fiscal rules and norms.