Effects of Budget Credibility and Financial Accountability on Service Delivery: Evidence from Selected Local Government Areas in Ekiti State, Nigeria

Vincent Olawale Bamidele, Busuyi Emmanuel Omodara and Olusola Success Adeyemi
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Vincent Olawale Bamidele: Department of Accounting, Federal College of Education (Technical), Gusau, Zamfara State, Nigeria.
Busuyi Emmanuel Omodara: Department of Accounting and Finance, Ajayi Crowther University, Oyo, Oyo State, Nigeria.
Olusola Success Adeyemi: Department of Accounting, Ekiti State University, Ado Ekiti, Ekiti State, Nigeria.

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Abstract: This study investigates the effects of budget credibility and financial accountability on service delivery in selected local government areas of Ekiti State, Nigeria. Budget credibility, defined as the alignment between approved budgets and actual expenditures, and financial accountability, characterized by adherence to financial regulations and transparency, are critical for effective public financial management. Despite the annual preparation of budgets, local governments in Nigeria often face challenges such as over-optimistic revenue projections, political interference, and weak internal controls, resulting in gaps between planned and actual expenditures and ultimately poor service delivery. Using a descriptive survey design, data were collected from 100 administrative and finance-related staff across five local government areas. Descriptive statistics revealed moderate levels of budget credibility (mean = 2.85), financial accountability (mean = 3.12), and service delivery (mean = 2.97). Pearson correlation analysis showed significant positive relationships between budget credibility and financial accountability (r = 0.65, p < 0.01), budget credibility and service delivery (r = 0.58, p < 0.01), and financial accountability and service delivery (r = 0.72, p < 0.01). Multiple regression analysis indicated that both budget credibility (β = 0.354, p < 0.001) and financial accountability (β = 0.498, p < 0.001) are significant predictors of service delivery, with financial accountability exerting a stronger influence. The model explained approximately 62% of the variance in service delivery (Adjusted R² = 0.608). The findings underscore the importance of realistic budgeting and robust accountability mechanisms for improving service delivery at the grassroots level. The study recommends evidence-based budgeting, strengthened internal controls, and continuous capacity building for local government staff to enhance public service outcomes.

Date: 2026-03-18
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Published in Journal of Economics and Trade, 2026, 11 (1), pp.272-285

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05558836

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