Determinants of Accrual-Based Accounting Compliance Among the Selected Federal MDAS in Nigeria

Abstract

Lack of accountability public service such as road maintenance, education, and asset management has contributed to inefficiencies, corruption, and poor decision-making within Nigeria’s federal Ministries, Departments, and Agencies (MDAs). Weak reporting mechanisms enable contractors and public officers to act without sufficient oversight, resulting in substandard infrastructure and ineffective service delivery. To address these challenges, this study examines the determinants of accrual-based accounting compliance among the selected federal Ministries, Departments, and Agencies (MDAs) in Kwara State. Specifically, the study investigates the relationships between regulatory pressure, staff competence, management support, organizational culture, information technology usage, and accrual-based accounting compliance among the selected federal MDAs in the state. A survey research design was adopted, and data were collected from 136 management staff drawn from a total population of 206 respondents. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to investigate the relationships among the study variables. The findings reported that regulatory pressure and organizational culture have negative effects on accrual-based accounting compliance, while staff competence, management support, and information technology usage exert positive and statistically significant influences on accrual-based accounting compliance. The study concludes that the model possesses substantial explanatory power, with the selected variables accounting for a significant proportion of the variation in compliance behavior. Therefore, the study recommends that a coordinated approach that integrates human, technological, and institutional reforms supported by effective monitoring and evaluation systems will ensure sustainable and improved accrual accounting compliance in the public sector.