Payroll Fraud In The Nigerian Public Sector: Dimensions, Determinants, And Its Fiscal Impact

Efiong, Eme Joel, PhD; Animpuye, Canice; Ogar-Abang, John Oyong, PhD; Ibembem Fidelis Ajim; Andortan Solomon Andortan; Ibrahim Mallam Fali, PhD

doi:10.63922/ijebir.v4i04.2080

Efiong, Eme Joel, PhD Department of Accounting, Faculty of Administration and Management Sciences, University of Calabar, Nigeria
Animpuye, Canice Department of Accounting, Faculty of Administration and Management Sciences, University of Calabar, Nigeria
Ogar-Abang, John Oyong, PhD Department of Accounting, Faculty of Administration and Management Sciences, University of Calabar, Nigeria
Ibembem Fidelis Ajim Department of Accounting, Faculty of Administration and Management Sciences, University of Calabar, Nigeria
Andortan Solomon Andortan Department of Accounting, Faculty of Administration and Management Sciences, University of Calabar, Nigeria
Ibrahim Mallam Fali, PhD Department of Accounting, Faculty of Administration and Management Sciences, University of Calabar, Nigeria

DOI: https://doi.org/10.63922/ijebir.v4i04.2080

Keywords: Determinants, Payroll fraud: Ghost Workers and Wages Falsification

Abstract

This study investigates the dimensions and determinants of payroll fraud in the Nigerian public sector. The major objective was to examine the factors influencing payroll fraud, with specific objectives including: assessing the effect of a culture that tolerates corruption, evaluating the strength of government institutions in combating payroll fraud, examining the impact of inadequate punishment for offenders, and exploring the relationship between poverty and payroll fraud within the Nigerian public sector. A descriptive cross-sectional survey research design was employed, utilizing a structured questionnaire based on a 5-point Likert scale to collect primary data. A non-probability quota sampling technique was used to select management staff from the Office of the Head of the Civil Service of the Federation, the Office of the Accountant General of the Federation, and the Office of the Auditor General for the Federation. Data collected were analyzed using descriptive statistics and regression diagnostic tests. The results revealed that a culture that tolerates corruption (CTC), the strength of government institutions (SGI), and the absence of adequate punishment (AAP) have a positive and significant relationship with payroll fraud in the Nigerian public sector. Conversely, poverty (PVT) exhibited a negative and statistically insignificant effect on payroll fraud. Based on these findings, the study recommends that government should strengthen internal control systems within payroll offices to detect and eliminate loopholes that enable payroll fraud. Additionally, strict compliance with established financial regulations should be enforced, and offenders should be adequately sanctioned to deter potential perpetrators and promote transparency in public financial management.

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