The Role of Forensic Accounting in Combating Financial Fraud in the Nigerian Public Sector

Abstract

Public-sector corruption remains a significant obstacle to Nigeria’s socioeconomic development, necessitating effective anti-fraud measures. This study investigates the role of forensic accounting in detecting and combating financial fraud post-2015, following major governance reforms such as the Treasury Single Account (TSA) and Bank Verification Number (BVN) system. Employing a mixed-methods approach, the study integrates quantitative forensic analysis (Benford’s Law) of financial data from federal ministries (2015–2022) and qualitative surveys and interviews with forensic practitioners. Benford’s Law analysis identified significant anomalies indicative of financial manipulation in 40% of assessed ministries, especially where oversight was weaker. Surveys (n=73) and interviews (n=12) with forensic professionals confirmed improved fraud detection effectiveness since 2015, linking forensic accounting directly to successful prosecutions and reduced leakages. However, substantial challenges persist, including insufficient training, technological constraints, and political interference. The study reveals forensic accounting’s potential to strengthen anti-corruption efforts, advocating institutionalization of forensic units, extensive capacity building, investment in technology, enhanced legal frameworks, and improved transparency.