BEYOND COMPLIANCE: EVALUATING IPSAS ADOPTION AND FINANCIAL TRANSPARENCY IN NIGERIA PUBLIC SECTOR

Abstract

This research investigated how adopting International Public Sector Accounting Standards (IPSAS) affects financial transparency within Nigeria's public sector. The study was prompted by ongoing issues with weak financial accountability, corruption, misleading financial reporting, and poor oversight of external debt, despite continuous efforts to reform public financial management. Using a quantitative approach, the research gathered primary data through structured questionnaires distributed to employees at Ministries, Departments, and Agencies (MDAs) in Rivers State. The study selected 104 participants through convenience sampling and analyzed the data using Pearson Product Moment Correlation Coefficient. Results showed a strong positive and statistically significant connection between IPSAS adoption and financial transparency (r = 0.785, p < 0.05). The analysis demonstrated that implementing IPSAS accounts for a substantial portion of improvements in financial transparency, emphasizing its role in better disclosure, reliability, and comparability of financial reports. Nevertheless, the research also revealed that IPSAS implementation by itself does not completely resolve issues like corruption, weak enforcement, and financial misrepresentation. The study concludes that although IPSAS adoption substantially enhances financial transparency, its success relies on strong institutional frameworks, enforcement mechanisms, and governance practices. The research recommends stronger regulatory enforcement, capacity building, improved audit systems, and enhanced transparency in public financial management to fully realize the benefits of IPSAS implementation.