Public Financial Management Reform, Transformational Leadership and Budget Performance in Ministries, Department and Agencies in Lagos State, Nigeria
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2022-12
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Lead City University
Abstract
The importance of a country's budget cannot be overstressed because it shapes economic priorities and accelerates economic growth. However, Budget Performance (BP) in Nigeria has been plagued by issues negatively affecting its performance. This raising concerns for public financial management and leadership. Hence, this study examined the interaction between Public Financial Management Reform (PFMR) and transformational leadership on BP in Ministries, Departments, and Agencies (MDAs) in Nigeria. This study adopted a cross-sectional survey research design, and the population was 310 accountants and auditors in MDAs in Lagos State, Nigeria. All the 310 accountants and auditors in MDAs in Lagos State were used as the unit of analysis hence the adoption of total enumeration method. A validated questionnaire was used to collect data. The Cronbach’s alpha reliability coefficients for the constructs ranged from 0.70 to 0.87. A response rate of 93.8% was achieved for the study. Data were analysed using descriptive and inferential statistics. Findings revealed that PFMR had significant effect on BP (R² = 0.228, F(1,291) = 85.968, p < 0.05). IPSAS had significant effect on BP (R2 = 0.231, F(1,291)= 87.379, p= 0.000). TSA had significant effect on BP (R2 = 0.203, F(1,291)= 73.901, p= 0.000). IPPIS had significant effect on BP (R2 = 0.026, F(1,291)= 7.743, p= 0.000). E- payment had significant effect on BP (R2 = 0.251, F(1,291)= 97.538, p= 0.000). GIFMIS had significant effect on BP (R2 = 0.208, F(1,291)= 76.439, p= 0.000). Transformational leadership had significant moderating effect on the relationship between PFMR and BP in MDAs in Lagos State, Nigeria (R square change = 0.090, F-change = 47.740, p =0.000). This study concluded that PFMR affects BP in MDAs in Lagos State in Nigeria. Likewise transformational leadership plays a significant moderating role. The study recommended that management overseeing MDAs in Lagos State need to re-evaluate their commitment to each of the PFMRs examined given their weak contributions to BP while ensuring they imbibe the transformational leadership’s philosophy during PFMR planning and enforcement.
Keywords: Budget performance, Financial management reforms, MDAs, Transformational leadership, Lagos State
Word Count: 328
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Kate Turabian