By Faith James
Did you know that a staggering 21 Nigerian states did not publish their audit reports for the 2022 financial year online? A probable implication of this is an undeniable reduction in citizen trust in public institutions.
Recently, in March 2024, the Paradigm Leadership Support Initiative unveiled the Subnational Audit Efficacy Index (SAE Index) for 2023. This index brought to light critical findings that underscore the urgent need to address gaps in how public funds are managed across Nigerian states. These gaps not only hinder sustainable development but also affect the overall well-being of Nigerians.
Key Findings and Their Implications
The SAE Index for 2023 highlighted several key areas where improvements are urgently needed:
- Financial Autonomy: While progress has been made by four out of thirty-six states towards implementing financial autonomy for the Office of the Auditor General, more states must prioritize this crucial step. Financial autonomy is essential for ensuring the independence and effectiveness of audits, which is crucial in uncovering financial mismanagement.
- Administrative Independence: Only 12 out of 36 states have implemented legal provisions to ensure administrative independence for the Office of the Auditor General. This lack of independence can compromise the integrity of audit processes and must be addressed through stronger legal frameworks.
- Transparency: A lack of transparency as is evident in the refusal to upload audit reports online by many Nigerian states widely undermines public trust in government institutions. Publishing audit reports and financial statements online is vital for accountability and fostering public confidence.
- Civic Engagement: The report revealed that only a handful of states have effective Public Accounts Committees and involve civic and media actors in the audit process. Active civic engagement is crucial for ensuring oversight and accountability in governance.
Recommendations for Improvement:
While these recent findings underscore critical gaps in transparency and accountability across Nigerian states, there are several actionable steps that can be deployed to mitigate further breakdown of institutional trust;
1. Political Will: Governors must demonstrate strong political will to enforce financial and administrative autonomy for audit offices as mandated by existing laws.
2. Collaboration: The Executive, House of Assembly, and the Office of the Auditor General should collaborate to strengthen legal frameworks and ensure effective implementation of audit laws.
3. Transparency: Audit reports should be published online along with domestic reports containing observations and recommendations of the Auditor General.
4. Civic Engagement: Offices of the Auditor General should actively engage with the public through forums and involve civic and media actors in the review of audit reports.
The findings of the Subnational Audit Efficacy Index emphasize the urgent need to bolster audit processes and enhance transparency and accountability in Nigerian governance. By implementing the recommended measures and addressing identified challenges, states can rebuild public trust and confidence. It is crucial for all stakeholders—from government officials to civil society organizations and the media—to collaborate in fostering a culture of accountability and good governance for the benefit of all Nigerians.
For more details, you can access the full report [here](https://plsinitiative.org/subnational-audit-efficacy-index-2023/).