Forensic accounting practices and fraud reduction in the public sector in Nigeria

This study examined the relationship between forensic accounting practices and fraud reduction in the public sector in Nigeria over the period of 2006 to 2025, with emphasis on Forensic Investigation Service (FIS) and Expert Witnessing (EW) as dimensions of forensic accounting practices, while Fraud Management Integrity (FMI) was adopted as the measure of fraud reduction. The study was anchored on the Fraud Triangle Theory and adopted an ex-post facto research design. Secondary annual time series data were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin, National Bureau of Statistics (NBS), Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), Knoema database, and other relevant government publications. The data were analyzed using descriptive statistics and the Autoregressive Distributed Lag (ARDL) technique. The Augmented Dickey-Fuller (ADF) unit root test established that the variables were integrated at mixed orders, I(0) and I(1), thereby justifying the adoption of the ARDL approach. The Bounds Cointegration Test confirmed the existence of a long-run equilibrium relationship among the variables, while the Error Correction Model (ECM) revealed a stable speed of adjustment towards long-run equilibrium following short-run disturbances. The ARDL estimation results showed that Forensic Investigation Service has a positive and statistically significant relationship with Fraud Management Integrity. Similarly, Expert Witnessing was found to exert a positive and statistically significant influence on Fraud Management Integrity in the public sector in Nigeria. The study concludes that effective implementation of forensic accounting practices significantly enhances fraud management integrity and contributes to fraud reduction in the Nigerian public sector. The study therefore recommends that government should strengthen forensic investigation units across public institutions, institutionalize the engagement of forensic accounting experts in financial crime litigation, and provide continuous investment in forensic accounting capacity and technology to improve transparency, accountability, and effective fraud management.