Management Accounting and Managerial Decision-Making in Selected Nigerian Public Institutions: Evidence from the Fourth Republic

Abstract

The need for increased efficiency and effectiveness of delivery of public services through greater demands of accountability and transparency is making management accounting very important in public administration. Since the return to democratic rule in 1999, the public agencies in Nigeria have experienced various reforms in public financial management in order to improve the effectiveness of management and organizational performance. This paper will try to assess the contribution of management accounting to managerial decisions in selected public agencies in Nigeria during the Fourth Republic era (1999 to date). The research uses a document research approach using secondary data collected from literature sources. The authors maintain that management accounting is essential insofar as the provision of pertinent financial and non-financial information to enable managers in their planning, budgeting, performance evaluation, allocation of resources, and decision-making processes is concerned. Despite the considerable reforms such as TSA, IPPIS, GIFMIS, and IPSAS, there exist certain institutional factors which have been responsible for undermining the practice of good management accounting. Such institutional obstacles consist of politics, weak professional capability, inadequate information systems, ineffective internal controls, and corrupt practices. In summary, it is suggested that good management accounting systems are very important in Nigeria for evidence-based decision-making, good governance, and fiscal responsibility and discipline.

Keywords: Management Accounting, Managerial Decision-Making, Public Institutions, Public Financial Management, Nigeria