INTERNAL CONTROL SYSTEMS AND CAPITAL PROJECTS EXECUTION PACE IN THE NIGERIA PUBLIC SECTOR

This work investigated the influence of internal control systems on the capital project execution rate with respect to the South-South states in Nigeria. The study aimed to investigate Ministries of the South-South Zone in Nigeria. Capital project execution rate (CPROER) is the dependent variable while internal control proxy as accounting control (ACCTC), Administrative and operational controls (ADMOPC), Personnel controls (PERSC), and Management controls (MANGC), serve as the independent variables for this study. Four (4) research questions and hypotheses were formulated to guide the study. The study adopted a survey research design with the population comprising 877 Auditors and Accountants working in five (5) randomly selected Ministries. Freud and William’s statistical formula was employed to draw 420 respondents from the population while the representatives of auditors and accountants were selected through simple random sampling. A structured questionnaire was employed as the instrument of data collection. The reliability of data generated was checked using the Cronbach Alpha test and also analysed using a frequency table, percentage analysis as well descriptive statistics and diagnostic tests such as correlation analysis, and multi-co linearity testing while the hypotheses formulated were tested using ordinary Least Square regression analysis. The study found among others that accounting control, administrative control and management control were statistically significant in influencing capital project execution rate in South-South Nigeria at 5% and 10% levels respectively when tested as stand-alone variables. However, when the variables interacted, all our explanatory variables were found to be statistically significant in influencing the capital project execution rate at a 5% significant level. The study concludes that the internal control system significantly influences the Capital project execution rate in South-South Nigeria and recommends among others, that the Ministries, Departments and Agencies in public sectors in Nigeria that are looking for a way to reduce the high rate of capital project abandonment in their States should consider strengthening their level of accounting control, administrative and operational control, and management control implementation rate as these were found to significantly influence the rate of capital project execution rate by our study.