Internal Control System and Financial Management of Government Hospitals in Nigeria

The purpose of this study was to investigate Internal Control System and Financial Management of Government Hospitals in Nigeria. In order to understand the study. A cross sectional survey was employed. Primary data was the source of data collection for this study. An inferential research design and survey method were used for this study, while data collection was adopted using questionnaires administered to 122 122 accountants, internal auditors and procurement or administrative officers of Federal Government Hospitals in Southwest, Nigeria which are Federal Teaching Hospital, Ido – Ekiti, Ekiti State, Nigeria, Federal Medical Center, Owo, Ondo State, Nigeria, University College Hospital, Ibadan, Oyo State, Nigeria, Obafemi Awolowo Teaching Hospital, Ile – Ife, Osun State, Nigeria, Orthopedic Hospital, Gbobi, Lagos State, Nigeria and Federal Medical Centre, Abeokuta, Ogun State, Nigeria. However, data were analyzed by using SSPS. It was found that internal control system positively and significantly influenced financial management of government hospitals in Nigeria. This study therefore, recommended that the management of government hospitals in Nigeria should implement robust control activities such as regular audits and segregation of duties, to ensure accountability and minimize financial mismanagement, they should also foster a strong control environment by promoting ethical leadership, staff training on financial protocols and clear policy enforcement to support effective financial management.

Internal Control System, Financial Management

1. Abdulkadir, A. R. & Olashinde, J. O. Empirical analysis of poor public financial management in Nigeria: causes, implications and remedies. Asian Development Policy Review, 2018, 178-197, 6(4). [Google Scholar] [Crossref]

2. Abdulrahman, S. How government expenditure effects on economic growth in Nigeria. Pyrex Journal of Business and Finance Management Research, 2018, 122-134, 2(10). [Google Scholar] [Crossref]

3. Adesola, V. A. & Kehinde, D. I. Financial resource management in the Nigerian public sector: policy measures to address loopholes. Problems and Perspectives in Management, 2020 329-339, 18(2). [Google Scholar] [Crossref]

4. Ajayi, I. E. & Edewusi, D. G. Effect of public finance management on economic growth of Nigeria; an empirical investigation. International journal of business and management review, 2020, 18-38, 8(1). [Google Scholar] [Crossref]

5. Akhanolu, I.A., Babajide, A.A., Akinjare, V., Oladeji, T. & Osuma, G. The effect of public debt management on economic growth in nigeria: an empirical investigation. International Business Management, 2018, 436-441, 12(6). [Google Scholar] [Crossref]

6. Aregbeyen M. An empirical analysis of the impacts of exports and foreign direct investment on economic growth in South Asia. Interdisciplinary Journal of Contemporary Research in Business, 2016, 115-130, 2(7). [Google Scholar] [Crossref]

7. Barro R, Government spending in a simple model of endogenous growth. Journal of Political Economy, 1990, 98(5),. [Google Scholar] [Crossref]

8. Berle, A. A. Jr., & Means, G. C. The Modern Corporation and private property. New York: Macmillan. 1932, 103-125, 1-45. [Google Scholar] [Crossref]

9. Berman, S. L. & Johnson -Cramer, M. E. Stakeholder theory: seeing the field through the forest. Business and Society, 2016, 1-8. [Google Scholar] [Crossref]

10. Brahmadev, P. & Leepsa, N. M. Agency theory: review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 2017, 74–95, 10(1). [Google Scholar] [Crossref]

11. Cheruiyot, P. M., Oketch, J. R., Namusonge, G. S. & Sakwa, M. Effect of public financial management practices on performance in Kericho county government, Kenya: A critical review. International Journal of Education and Research, 2017, 211-224, 5(12). [Google Scholar] [Crossref]

12. Ernest, S. O. & Raymond, O. APublic sector financial management and output growth in Nigeria: a predictive causality test and two-stage least square approach. International Journal of Economics, 2018, 1-15, 1(2). [Google Scholar] [Crossref]

13. Faiza, M., Longbao, W., Abid Hussain, I., Muhammad, A. & Syed, I. A. (2018). Patient satisfaction with health care services; an application of physician’s behavior as a moderator. International Journal of Environmental Research and Public Health, 2018, 1-16, 2(1). [Google Scholar] [Crossref]

14. Shabbir, A.; Malik, S.A.; Malik, S.A. Measuring patients’ healthcare service quality perceptions, satisfaction, and loyalty in public and private sector hospitals in Pakistan. Int. J. Qual. Reliab. Manag, 2018, 538–557, 3(3). [Google Scholar] [Crossref]

15. Favour, E.O., Ideniyi, O.S., Oge, E.O. & Charity, I.A. Public financial management and economic growth in Nigeria. Asian Research Journal of Arts &Social Sciences, 2017, 1-16, 4(3). [Google Scholar] [Crossref]

16. Felix, O. & Rufus, S., O. Pedagogy and impact of GIFMIS adoption as a tool for public finance management. Canadian Social Science, 2018, 1-8, 14(1). [Google Scholar] [Crossref]

17. Freeman, R. E. Strategic management: A stakeholder approach. Massachusetts: Pitman, 1984. [Google Scholar] [Crossref]

18. Gamaliel, M. M. & Ali, A. I. Effect of public financial management on budget implementation in the public sector, a case of ministry of devolution and Asal. The strategic journal of business and change management, 2019, 573-585, 6(1). [Google Scholar] [Crossref]

19. Ganescu, C., & Gangone, A. A model of socially responsible organizational culture. Studia Universitatis “Vasile Goldis” Arad. Economic Series, 2017, 45-59, 27(2). [Google Scholar] [Crossref]

20. Ghosh, K. Corporate reputation, social performance, and organizational variability in an emerging country Perspective. Journal of Management and Organization, 2017, 545-565, 23(4). [Google Scholar] [Crossref]

21. Iheanacho, E. The contribution of government expenditure on economic growth of Nigeria disaggregated approach. International Journal of Economics & Management Sciences, 2016, 2-8, 5(5). [Google Scholar] [Crossref]

22. Jeffrey, S. H., Edward, F. R. & Mônica, C. Sá de AStakeholder theory as an ethical approach to effective management: applying the theory to multiple contexts. Review of Business Management, 2015, 858-869, 17(55). [Google Scholar] [Crossref]

23. Jensen, M. C., & Meckling, W. H. Theory of the firm: managerial behavior agency costs ownership structure. Journal of Financial Economics, 1976, 305 -360, 3(2). [Google Scholar] [Crossref]

24. Joseph, K. The between relationship public sector and industrial sector productivity. Journal of Government Financial Management, 2017, 07-22, 65(3). [Google Scholar] [Crossref]

25. Jumare, A., Yusuf, M. & Mohammed, W. Assessing public sector financial management and economic growth in Africa: four essays on public financial management and public service delivery. South African Journal of Economics, 2015, 1-162, 1(4). [Google Scholar] [Crossref]

26. Kanu, S. I., Obi, H. K. & Akuwudike, H. C. Impact of public sector financial management on the economic growth of Nigeria. International Journal of Management Science and Business Administration, 2021, 45-59, 7(4). [Google Scholar] [Crossref]

27. Lee, D. Corporate social responsibility and management forecast accuracy. Journal of Business Ethics, 2017, 353-367, 140(2). [Google Scholar] [Crossref]

28. Lotto, I. The effect of government expenditure on economic growth. International Journal of Academic Research in Business and Social Sciences, 2016, 487-496, 2(1). [Google Scholar] [Crossref]

29. Lucy, W. N. Factors affecting financial management practices in public secondary schools: a case of schools in Embu West Sub-County, Kenya. International journal of finance and economics, 2016, 1-18, 2(1). [Google Scholar] [Crossref]

30. Mohammed, N. Assessment of the effectiveness of financial management and control techniques in the Nigerian public sector (case study of Borno State Ministry of Finance, Maiduguri). Social Science Management Journal, 2018, 111-122, 1(5). [Google Scholar] [Crossref]

31. Morakinyo, O., F., David, O., J. & Alao, A., J. Impact of fiscal policy instrument on economic growth in Nigeria. International Journal of Economics and Financial Management, 2018, 14-29, 3(1). [Google Scholar] [Crossref]

32. Mousa, T.A. & Shawawreh, A. The impact of financial management on the economic growth of Indonesia: an empirical study (2000- 2015). Accounting and Finance Research, 2017, 114-120, 6(2). [Google Scholar] [Crossref]

33. Muhunyo, B. B. Effect of internal control systems on financial performance of public institutions of higher learning in Nairobi city county, Kenya. A thesis submitted to the Kenyatta University. 2018, 1-74. [Google Scholar] [Crossref]

34. Mutai, P. C. Effect of public financial management practices on performance of County Government in Kenya. A thesis submitted to the Jomo Kenyatta university of agriculture and technology, Kenya. 2018, 1-223. [Google Scholar] [Crossref]

35. Mwangi, R. K. The impact of the public financial management reforms on financial operations of the ministry of finance, a case of ministry of finance. A thesis submitted to the University of Nairobi. 2016, 1-79. [Google Scholar] [Crossref]

36. Nwezeaku N. C. The impact of public sector financial management on the economies of subSaharan Africa. International Research Journal of Finance and Economics, 2015, 1-18, 4(3). [Google Scholar] [Crossref]

37. Nyamita, A., Dorasamy, I. & Garbharran, A. Public sector financial management reforms in France. International Journal of Economics and Financial Management, 2015, 1-31, 2(1). [Google Scholar] [Crossref]

38. Odior, F. &Alenoghena, E. Causality relationship between public sector financial management and output growth. International Journal of management science and Business Administration, 2015, 1-21, 7(1). [Google Scholar] [Crossref]

39. Okwori, J. & Sule, A. Revenue sources and economic growth in Nigeria: An Appraisal. Journal of Economics and Sustainable Development, 2016, 1-20, 7(8). [Google Scholar] [Crossref]

40. Oladitan, S. T. Effect of public financial management on economic growth. A thesis submitted to Kwame Nkrumah University of Science and Technology. 2016, 1-70. [Google Scholar] [Crossref]

41. Olaoye, F. O. & N. O. Olaniyan Public sector financial management and economic growth (study in Nigeria). International journal of economic and business, 2020, 56-65, 3(1). [Google Scholar] [Crossref]

42. Olayinka, E., S. & Adeyemo, O., R. Public sector financial management and output growth in Nigeria: a predictive causality test and two-stage least square approach. Journal of Economic & Financial Studies, 2019, 1-13, 2(1). [Google Scholar] [Crossref]

43. Omodero, O. C, Ekwe, C. M & Ihendinihu, J. Impact of internally generated revenue on economic development in Nigeria. Accounting and Finance Research, 2018, 166–173, 7(2). [Google Scholar] [Crossref]

44. Onuorah, A. Accountability and public sector financial management in Nigeria. Arabian Journal of Business and Management Review, 2017, 1-17, 1(6). [Google Scholar] [Crossref]

45. Patrick, M. C., Julius, R. O., Gregory, S. N. & Maurice, S. Effect of public financial management practices on performance in Kericho County government, Kenya; a critical review. International Journal of Education and Research, 2017, 1-14, 5(12). [Google Scholar] [Crossref]

46. Racheal, W. M. The role of public financial management practices on service delivery in selected counties: perception of members of county assembly. A dissertation submitted to KCA University, Kenya. 2016, 1-88. [Google Scholar] [Crossref]

47. Rafindadi, A.A. & Musa, A. An empirical analysis of the impact of public financial management strategies on Nigeria’s debt profile. International Journal of Economics and Financial Issues, 2018, 125-137¸ 9(1). [Google Scholar] [Crossref]

48. Roma, P. M. The origins of endogenous growth. The Journal of Economic Perspectives, 1994, 3-22, 8(1). [Google Scholar] [Crossref]

49. Saifuddin, M. Public financial management and economic growth: evidence from Bangladesh. Global Journal of Management and Business Research Economics and Commerce, 2016, 65-73, 16(5). [Google Scholar] [Crossref]

• The Role of Value and Growth Stocks in Portfolio Returns: Insights From the Nigerian Stock Market
• The Impact of Environmental, Social, Governance (ESG) and Profitability on Firm Value Moderated by Firm Size
• Assessment of the Impact of Environmental Operating Costs on Return on Assets: Evidence from Listed Breweries in Nigeria
• Mobile Money and Digital Financial Services Ecosystem in Adamawa State
• A Quantitative Approach of Professional Skepticism and Fraud Detection among Malaysian Internal Auditors