American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 50 | P a g e MODERN FINANCIAL MANAGEMENT PRACTICES AND FRAUD MITIGATION IN THE PUBLIC SECTOR: THE NIGERIAN EXPERIENCE Obarisiagbon Maureen Iroghama, FCA and Eke Robert Ike PhD, FCA. Department of Accounting and Finance, College of Social and Management Sciences, Wellspring University Benin City, Edo State. Email: mobarisiagbon2080@gmail.com; and robbyeke19@yahoo.com; Phone Number: 08035569223, 08034712733 DOI: https://doi.org/10.5281/zenodo.17911755 ABSTRACT: This study examined the impact of modern financial management practices on fraud mitigation in the Nigerian public sector, focusing on federal government parastatals operating in Edo State. The study specifically assessed the effectiveness of the Treasury Single Account (TSA), Integrated Payroll and Personnel Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS) in reducing fraudulent activities and improving financial transparency. A descriptive survey research design was adopted, and structured questionnaires were administered to staff in the accounting, audit, and budget departments of selected federal MDAs. Data collected were analyzed using descriptive statistics and multiple regression analysis. The findings revealed that all three financial management reforms—TSA, IPPIS, and GIFMIS—have significant positive effects on fraud mitigation, with IPPIS exhibiting the strongest influence. The regression model showed an R value of 0.899 and an R² of 0.808, indicating that 80.8% of the variation in fraud mitigation is explained by the combined effect of the independent variables. The study concludes that modern financial management practices play a crucial role in enhancing accountability and reducing fraud in Nigeria’s public sector. It recommends strengthening compliance with TSA, expanding IPPIS coverage, enhancing GIFMIS functionality, and investing in capacity building and digital infrastructure to sustain improvements in public financial integrity. Keywords: Treasury Single Account (TSA), IPPIS, GIFMIS, fraud mitigation, public sector financial management. 1.0 INTRODUCTION The Nigerian public sector continues to grapple with entrenched issues of financial mismanagement, systemic corruption, and pervasive fraud, which have collectively hindered sustainable development mailto:mobarisiagbon2080@gmail.com;%20and mailto:robbyeke19@yahoo.com American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 51 | P a g e and the effective delivery of public services. Practical evidence reveals how these issues have not only strained the fiscal capacity of the government but have also significantly eroded public trust and institutional credibility (Akinyemi & Adegbite, 2023). Given the huge efforts by successive anti- corruption campaigns and institutional reforms, fraudulent practices—ranging from embezzlement and misappropriation of public funds to procurement-related malfeasance—remain deeply institutionalized within the bureaucracy (Oni & Salisu, 2022). The persistence of these malpractices underscores the structural weaknesses within Nigeria’s public financial management architecture. Scholars argue that the lack of robust internal control systems, deficient audit practices, and the politicization of oversight bodies have created an enabling environment for fraud to flourish (Obiora et al., 2023). Moreover, the inadequacy of digital financial tracking systems and the continued reliance on manual processes have compounded issues of poor record-keeping and financial opacity (Ezeani, 2024). These systemic inefficiencies not only weaken resource mobilization and allocation but also fuel a culture of impunity among public officials, particularly in ministries, departments, and agencies (MDAs) with minimal external scrutiny (Ogundipe & Uche, 2023). The policy environment has often been reactive rather than preventive, lacking in the strategic foresight needed to address governance gaps. While frameworks such as the Integrated Financial Management Information System (IFMIS) and the Treasury Single Account (TSA) have shown promise, their uneven implementation and circumvention by vested interests limit their efficacy (Nwokedi, 2024). Consequently, fraud in the Nigerian public sector persists not merely as an isolated set of criminal acts but as a symptom of deeper governance and accountability crises. Addressing these challenges demands a rethinking of institutional design, political will, and the integration of real-time digital monitoring systems capable of detecting and deterring financial irregularities in public administration. In response to the persistent inefficiencies, fraud and systemic corruption that have historically plagued Nigeria's public financial management, the federal government has implemented a series of reformative measures aimed at institutional modernization, transparency, and accountability. These reforms, deeply embedded in Nigeria’s broader public sector transformation strategy, points out a shift from manual, opaque bureaucracies to technology-driven governance (World Bank, 2023). A flagship initiative in this regard is employment of modern financial management practices such as the integrated payroll and personnel information system (IPPIS), which seeks to eliminate the entrenched problem of “ghost workers”—a phenomenon that has long facilitated payroll fraud and fiscal leakages. Through digital centralization of staff records and payroll processes across Ministries, Departments, and Agencies (MDAs), the integrated payroll and personnel information system has led to the discovery and removal of thousands of fictitious employees, saving the government billions of naira (Olaniyan & American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 52 | P a g e Adetoro, 2023). However, critics argue that while the integrated payroll and personnel information system (IPPIS) has made strides in personnel management, it remains vulnerable to manipulation by internal actors, reflecting broader concerns about technological reforms outpacing institutional capacity (Akinwale & Eze, 2024). Complementing this is the treasury single account (TSA), launched in 2015, which consolidates government revenue inflows into a singular account maintained by the Central Bank of Nigeria. This reform aims to curtail the proliferation of fragmented bank accounts held by MDAs—a practice that previously enabled opaque transactions and illicit financial diversions. Recent evaluations suggest that the treasury single account has improved fiscal discipline and enhanced the government’s cash management framework (IMF, 2024). Nonetheless, its implementation has not been without challenges, including resistance from powerful political and institutional actors who benefited from the status quo ante (Ajayi & Okechukwu, 2023). While these reforms mark significant steps toward more transparent governance, they also reveal the tension between digital innovation and entrenched institutional inertia. A key concern remains the lack of robust enforcement mechanisms and the absence of citizen engagement in monitoring government expenditures. As such, experts contend that technological reforms like IPPIS and TSA must be embedded within a broader framework of public accountability, civil society oversight, and institutional reform to yield sustained impact (OECD, 2023). The deployment of the government integrated financial management information system (GIFMIS) in Nigeria represents a significant stride toward modernizing public financial administration. As a comprehensive digital platform, government integrated financial management information system is designed to automate and integrate essential fiscal operations, including budgeting, treasury management, accounting, and financial reporting (World Bank, 2023). Its real-time data processing capabilities allow for enhanced oversight by enabling government institutions to track expenditures, reconcile accounts, and generate accurate reports efficiently. However, while such digitization ostensibly promises improvements in transparency and accountability, its practical effectiveness has been mixed. Contemporary evaluations reveal that although GIFMIS has contributed to reducing some forms of manual errors and limiting certain avenues for financial mismanagement, systemic challenges persist. For example, high-profile cases of procurement fraud, budget padding, and unauthorized virements continue to surface, highlighting the adaptive nature of corruption in the public sector (Ibrahim & Udeh, 2023). Moreover, entrenched bureaucratic resistance to technological reforms, coupled with inadequate digital literacy among civil servants, significantly impedes the full potential of government integrated financial management information system (Adewole et al., 2022). Crucially the issue is not merely technical but institutional. Weak enforcement mechanisms, limited political will, and compromised oversight bodies often undermine the integrity of public financial systems, regardless American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 53 | P a g e of the technological tools in place (Okonkwo & Ekong, 2024). The Nigerian experience thus exemplifies that while digital financial platforms like government integrated financial management information system can serve as catalysts for reform, they are not panaceas. Effective implementation must be supported by robust institutional frameworks, continuous capacity building, and unwavering political commitment to transparency and accountability. The adoption of technology-driven public financial management systems—such as the integrated payroll and personnel information system (IPPIS), treasury single account (TSA), and government integrated financial management information system (GIFMIS) has enhanced transaction visibility and traceability in Nigeria. However, systemic issues such as institutional inertia, inadequate technical expertise, and entrenched corruption continue to hinder their effectiveness (Adegbite & Olayiwola, 2023). While these systems are designed to curb payroll fraud, eliminate ghost workers, and consolidate government revenues, their success remains contingent upon rigorous enforcement, independent audits, and institutional accountability (Ezeani et al., 2022). Despite incremental gains, study conducted by Okonkwo and Ahmed (2024) reveal that the sustainability of these reforms is undermined by weak political will and a persistent culture of impunity in the public sector. This research critically evaluates the extent to which these systems have contributed to fraud reduction. Moreover, it addresses broader structural and cultural barriers to reform implementation, offering policy-relevant insights for enhancing transparency and accountability in Nigeria’s public financial landscape. Thus, the motivation for this study therefore, lies in addressing these compelling teething issues in the Nigerian clime. There is a compelling need to re-examine the efficacy of modern financial management tools not merely as technological innovations, but as instruments embedded within a broader socio- political and institutional context. A critical understanding of these dynamics is essential to inform policy realignment, improve financial accountability, and restore public sector credibility (Ezenwa & Mohammed, 2024). The study is also motivated by the paucity of conceptual frameworks that integrate governance theory, institutional capacity, and digital infrastructure in explaining the outcomes of financial reforms. By bridging this gap, the paper aims to contribute to both theory and praxis—offering insights that are academically rigorous and practically relevant to stakeholders involved in public financial governance in Nigeria. To this end, the following research questions are raised for the purpose of investigation of this study: 1.2 Research Question i. What is the impact of integrated payroll and personnel information system (IPPIS) on fraud mitigation in the Nigerian public sector? ii. What is the relationship treasury single account (TSA) and fraud mitigation in the Nigerian public sector? American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 54 | P a g e iii. What is the implication of government integrated financial management information system (GIFMIS) on fraud mitigation in the Nigerian public sector? 1.3 Objective of the Study The general objective of this study is to investigate the impact of modern fraud management instruments on fraud reduction in the Nigerian public sector. However, the specific objectives are to: i. Examine the impact of integrated payroll and personnel information system (IPPIS) on fraud mitigation in the Nigerian public sector; ii. Ascertain the relationship between treasury single account (TSA) and fraud mitigation in the Nigerian public sector; and iii. Assess the implication of government integrated financial management information system (GIFMIS) and fraud mitigation in the Nigerian public sector. 1.4 Scope This study focuses on examining the impact of modern financial management practices on fraud mitigation in the Nigerian public sector, with particular emphasis on federal government parastatals operating within Edo State. Geographically, the study is limited to selected federal parastatals in the state, as they represent key public institutions where modern financial reforms such as digital payment platforms and integrated accounting systems have been actively implemented. The study specifically investigates three major financial management practices introduced by the Federal Government of Nigeria—Treasury Single Account (TSA), Integrated Personnel and Payroll Information System (IPPIS), and the Government Integrated Financial Management Information System (GIFMIS). These constitute the independent variables. The research assesses how each of these reforms has contributed to enhancing transparency, tightening internal controls, and reducing opportunities for fraudulent practices in public financial transactions. 2.0 LITERATURE REVIEW 2.1 Conceptual Review 2.1.0 Modern Financial Management Practices 2.1.1 Integrated Payroll and Personnel Information System (IPPIS) Modern financial management practices encompass the adoption of contemporary tools, technologies, and methodologies aimed at enhancing transparency, accountability, and efficiency in financial operations. In the public sector, especially in countries like Nigeria, these practices are pivotal in combating financial mismanagement and fraud (Ojo & Adesina, 2022). Modern financial management practices involve the integration of advanced technologies, standardized procedures, and strategic frameworks to enhance transparency, accountability, and efficiency in financial operations. In Nigeria's public sector, these practices are pivotal germane in tackling issues related to financial mismanagement American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 55 | P a g e and fraud. Effective financial management is pivotal for the efficient operation of the public sector, particularly in developing economies like Nigeria. Over the years, Nigeria has embarked on various reforms to enhance transparency, accountability, and efficiency in public financial management (PFM) (Okwu, & Etekpe, 2022) The integration of digital technologies into Nigeria's public financial management has been a significant step toward enhancing efficiency, reducing fraud and corruption. Njoku et al. (2023) highlight the adoption of digital tools such as forensic accounting, e-governance platforms, and ICTs in financial management processes. Their study indicates that approximately 63% of surveyed public sector employees reported the use of digital technologies in tasks like tax compliance and reporting. The benefits identified include improved transparency, enhanced decision-making, and increased efficiency. However, challenges such as resistance to change and high implementation costs persist. The connection between financial management and fraud in Nigeria's public sector is evident through systemic weaknesses, the role of professionals in facilitating fraud, and the challenges in implementing technological and forensic solutions (Olagunju & Olufemi, 2021). Effective financial management is crucial for ensuring transparency, accountability, and the efficient use of public resources. In Nigeria, however, weaknesses in financial management systems have been closely linked to the prevalence of fraud within the public sector. Recent investigations and reports highlight how lapses in financial controls, procurement processes, and oversight mechanisms have facilitated fraudulent activities across various government ministries, departments, and agencies (MDAs). The Office of the Auditor- General for the Federation uncovered irregular payments totaling over ₦197.72 billion across multiple MDAs between 2020 and 2021. These included payments for contracts that were either partially executed or not executed at all, as well as violations of procurement laws and financial regulations. Such systemic weaknesses in financial management create opportunities for fraud and misappropriation of public funds (Olagunju & Olufemi, 2021). 2.1.2 Treasury Single Account (TSA) The Treasury Single Account (TSA) is a financial policy implemented by the Nigerian government to consolidate all inflows from various ministries, departments, and agencies (MDAs) into a single account at the Central Bank of Nigeria (CBN). This system aimed to enhance transparency, reduce financial mismanagement, and improve fiscal discipline within the public sector (. ). Introduced in 2012 under President Goodluck Jonathan and fully implemented during President Muhammadu Buhari's administration, the TSA was designed to centralize government revenue and payments, thereby minimizing the risk of corruption and inefficiency. The International Monetary Fund (IMF) supports such systems, noting that they can reduce borrowing costs and improve fiscal policy outcomes. American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 56 | P a g e In recent years, the Nigerian government has made notable adjustments to the TSA policy: In October 2023, President Bola Tinubu approved the removal of the FCT Administration from the TSA (Ekperi, & Anokwu, 2023). This decision was made to allow the FCT easier access to its Internally Generated Revenue (IGR) for infrastructural development, as the TSA's centralized nature had previously hindered timely funding for projects. In September 2024, the federal government directed that third- party research grant funds for federal universities and research institutions be excluded from the TSA (Wikipedia, 2025). This move aimed to enhance the financial autonomy of these institutions and promote innovation by allowing them direct access to research funds. In January 2024, the government announced the shutdown of the TSA for revenue collection, directing all MDAs to remit revenues into a Sub-Recurrent Account, a component of the CRF (Emetaram & Ofor (2025). This change was intended to improve revenue generation and fiscal discipline. On the overall, The TSA has been credited with improving fiscal responsibility by providing the government with a consolidated view of its cash resources, thereby facilitating better planning and allocation (Olanrewaju, & Afolabi, 2022). By centralizing government revenues, the TSA has helped in curbing mismanagement and embezzlement of public funds (Muhammad, 2023). 2.1.3 Integrated Payroll and Personnel Information System (IPPIS) Enakirerhi and Temile (2017) see IPPIS as an IT-enabled facility being put in place to establish a reliable and comprehensive database for the public service, facilitate manpower planning, eliminate record and payroll fraud, facilitate easy storage, update and retrieval of personnel records for administrative and pension processes and staff remuneration payment with minimal wastages and leakages. According to them, since the inception of the project. IPPIS has saved the Federal Government of Nigeria billons of Naira by eliminating thousands of ghost workers via personnel verification exercise and salary payment process. While Enakirerhi and Temile (2017) conceptualized IPPIS from IT-enabled facility which has assisted the government in saving billions of Naira, Ugada and Eze (2024) noted that proper implementation of IPPIS can eliminate payroll fraud in Nigeria civil service. Farajimakin and Anichebe (2019) view IPPIS as intervention scheme and reform when they observed that, Integrated Personnel and Payroll Information System (IPPIS): is a world BankAssisted project under the Economic Reform and Government Project (ERGP) which was aimed at establishing a reliable and comprehensive database for the public service, facilitate manpower planning, assist in providing information for decision making, eliminate double dipping and credentials falsification, facilitate easy storage, update and retrieval of personnel record for administrative and pension process, and to facilitate staff remuneration payment. To them, IPPIS programme enable the MDAs to fish out the ghost workers for the attainment of public probity in governance (Farajimakin & Anichebe, 2019). American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 57 | P a g e 2.1.4 Government Integrated Financial Management Information System (GIFMIS) An Integrated Financial Management Information System (IFMIS) refers to the application of technology in managing financial activities to enhance fiscal decision-making, ensure fiduciary accountability, and streamline the preparation of financial reports and statements. In the public sector context, IFMIS represents the digital transformation of public financial management (PFM) processes (USAID, 2008). It is a comprehensive, IT-based budgeting and accounting system that integrates all financial management functions within government institutions into a unified platform. This system supports the formulation and execution of annual budgets, tracking of expenditures, financial reporting, and delivery of efficient and cost-effective public services. By operating on a standardized framework, IFMIS promotes consistency and interoperability of fiscal data across agencies, thereby reducing the need for fragmented and expensive standalone accounting systems in individual government entities (Oyinlola et al., 2017). In 2011, during the initial implementation of the Government Integrated Financial Management Information System (GIFMIS), the Office of the Accountant-General of the Federation uncovered that Nigeria's Ministries, Departments, and Agencies (MDAs) maintained approximately 12,622 bank accounts across various commercial banks. This fragmented banking structure hindered the government's ability to ascertain its consolidated cash position, leading to inefficiencies in cash management and necessitating additional borrowing, which adversely affected the national budget. GIFMIS was introduced to address these challenges by centralizing and automating public financial management processes (Ibrahim & Dauda, 2014) The system integrates budget preparation and execution, treasury management, financial reporting, procurement, and revenue management into a unified platform; this integration enhances real-time monitoring of government expenditures and revenues, thereby improving transparency and accountability (Clement, 2023). Recent initiatives underscore the government's commitment to leveraging GIFMIS for improved fiscal discipline. In preparation for the 2024 budget, the Budget Office of the Federation commenced training for MDA personnel on the use of the GIFMIS Budget Preparation Sub-System (BPS) (Mathew, 2024). This training aimed to equip budget officers with the necessary skills to efficiently utilize the system, ensuring accurate budget preparation and execution. Furthermore, the federal government has unveiled plans to deploy a Central Revenue System integrated with GIFMIS to enhance financial transparency and accountability. This system will monitor revenue generation and provide a consolidated dashboard of the revenue situation for all federal government- owned enterprises, facilitating direct payments to beneficiaries and reducing opportunities for revenue leakage. In a nutshell, the implementation of GIFMIS has been pivotal in reforming Nigeria's public financial management by centralizing financial operations, enhancing transparency, and improving American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 58 | P a g e budgetary controls. These reforms contribute to more efficient public service delivery and bolster the government's efforts to combat financial mismanagement. 2.1.5 Fraud and Fraud Mitigation Fraud is still a significant issue for all businesses, regardless of their size or complexity. It's a phenomenon that eats away at both growth and profit margins ((Larson,2016). People frequently question why there is so much fraud and why it is not identified sooner to prevent damages. Fraud is defined as a willful disdain for an organization’s structure and a concerted effort to circumvent it for personal gain. Fraud is commonly defined as intentional deception aimed at securing unlawful gain or depriving others of their rightful resources (Bello & Thomas, 2023). In the Nigerian public sector, one of the most pervasive forms of fraud is payroll fraud, particularly involving ghost workers—non-existent or unauthorized individuals listed on government payrolls. This malpractice results in significant financial losses, with estimates indicating that Nigeria loses over ₦100 billion annually due to ghost worker schemes. Ghost worker fraud encompasses various deceptive practices, including the inclusion of fictitious names, impersonation of former employees, and manipulation of employment records to illicitly obtain salaries (Stransact, 2024). These fraudulent activities are often facilitated by individuals with access to payroll systems, exploiting weaknesses in oversight and verification processes. 2.2 Conceptual Framework Dependent Variable: Independent Variables: Source: Researcher’s Conceptual Framework Design, 2025 2.3 Theoretical Framework This study employed fraud triangle theory to discuss the study. The Fraud Triangle Theory, developed by Donald Cressey in the 1950s, originally emerged from criminological studies of embezzlers, which FRAUD REDUCTION TSA IPPIS GIFMIS E E Profit (Capital ) Appreciatio n) American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 59 | P a g e was termed “trust violators.” Cressey posited that three-elements, namely, pressure, opportunity, and rationalization—must coexist for occupational fraud to occur (Cressey, 1953). In financial management literature, the theory has become a foundational framework for understanding internal fraud, particularly in public sector institutions where weak controls create opportunities for misappropriation. In the Nigerian public sector, reforms such as the Treasury Single Account (TSA), Integrated Payroll and Personnel Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS) are directly aligned with the fraud triangle framework by targeting the opportunity leg of the triangle. These systems introduce automation, centralization, and real-time monitoring, thereby closing loopholes that previously allowed for mismanagement and fraud (Omodero & Alege, 2023). For instance, TSA reduces opportunities for fund diversion by consolidating government accounts. IPPIS minimizes payroll fraud through biometric verification and centralized staff records, while GIFMIS ensures transparent budgeting and expenditure tracking. By mitigating opportunity and increasing transparency, these reforms make rationalization and concealment more difficult, thereby reducing fraud incidence (Nwaiwu & Adigwe, 2022). 2.4 Empirical Review Several financial management practices have been introduced to reform and improve public sector performance in Nigeria. The Treasury Single Account (TSA), Government Integrated Financial Management Information System (GIFMIS), and Integrated Personnel and Payroll Information System (IPPIS) are notable examples of the modern financial management practices into the Nigerian public sector space. Bashir (2016) evaluated the effects of Treasury Single Account on Public Finance Management in Nigeria. The study examined the extent to which Treasury Single Account can block financial leakages, promotes transparency and accountability in the public financial management. Both primary and secondary data was employed. The populations of study were drawn from Ministries, Department and Agencies (MDAs) within Bauchi metropolis and a sample of 72 respondents were chosen through judgment sampling technique. Pearson Correlation technique was used to analyze using the Pearson Correlation techniques. The result of this research showed that adoption of a Treasury Single Account (TSA) is capable of plugging financial loopholes, promoting transparency and accountability in the public Financial System. The study recommends that for the success of this policy government should promulgate more legislation to make it mandatory for all the three tiers of government in Nigeria. Kanu (2016) assessed the positive effect of implementation of TSA on the Economy, the public accounting system and the undesired consequences on the liquidity base and presentation of banking sector in Nigeria. The populations of the study were drawn from 24 banks in Nigeria and the samples of ten banks were chosen through descriptive and inferential statistics. The data were analyzed using American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 60 | P a g e Chi-square. The results obtained established that the implementation of TSA in the public accounting system impacted negatively on the liquidity base and the performance of banking sector in Nigeria. The study recommends that CBN and the Government should come up with an arrangement to address the issue of TSA considering the impact of the activities as the important factor for efficient management, control of government's cash resources as well as sustainability of banks. Badejo et al (2017) using exploratory study of the nexus of TSA policy in Nigeria: an exploratory discourse observed that the implementation of the policy is critical towards curbing financial leakages, excesses as in public finance, it eliminates financial indiscipline and ensure adequate fund flow that will be channeled to critical sectors of the economy. Thus, guiding government in its’ spending and receipts towards accelerating the rate of national growth and development. This is made in line with trajectory of the extant mismanagement of government resources. The study drew references from previous experiences of developed countries such as France, UK and other countries. Oyedokun (2016) using meta-analysis to study the imperative of TSA in Nigeria focusing on public federal institutions as the case study reported mixed results. He recommended TSA for the prevention of fraudulent activities and enable government to monitor its resources at a glance. He further noted that despite the legion of benefits of TSA, its challenges are abounded in Nigeria. Though, care must be taken in order not to allow the unenthusiastic effect of TSA to overpower the meaning of government. Kankpan et al., (2022) examined the extents to which the implementation of the TSA policy has affected the minimization of corruption and other unwholesome fraudulent practices in the Nigerian public sector. The study was conducted as a conceptual study by reviewing the works of several other researchers regarding the effect of TSA. The study concluded that notwithstanding the various strategies put in place by successive administrations in Nigeria to combat corruption and public sector fraud, it has persisted because of the lack of political will to put a definite end to the monster. The study recommended that the government through appropriate agencies should strengthen the process of TSA compliance Ajao, et al., (2022) study examined the effect of government integrated management information system on fraud prevention in Nigerian. Survey design was adopted. One hundred and Thirty-Seven (137) copies of questionnaires were administered to government employees in the selected agencies and one hundred and thirty-three (133) were returned. Descriptive and inferential (Multiple regression) were used to analyse the data. The result of the finding shows that integrated financial management information has significant effect on fraud prevention in Nigerian public sector. Adj. R2= 0.64, F- statistics 35.862, P- value. The study concluded that integrated financial management information system has significant effect on fraud management. The study recommended that the federal government should maintain the integrated financial management system so that when power changes, American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 61 | P a g e they will continue to use the system that is already in place to avoid stagnating economic growth and development. Izang et al., (2024) study looked at how integrated management information systems affected fraud monitoring and detection in the Nigerian public sector. A survey design was used. Government employees in the chosen agencies were given 137 questionnaires; 133 of them were returned. Both descriptive and inferential (multiple regression) methods were used to analyze the data. Integrated financial management information has a significant impact on fraud detection in the Nigerian public sector, according to the findings. Information from integrated financial management has a significant impact on Nigeria’s public sector’s ability to monitor fraud. The integrated financial management information system can monitor and detect fraud, according to the study’s findings, and it is recommended that the federal government’s GIFMIS officers make sure the system is upgraded to include new capabilities. Instances of fraud should not be kept secret; instead, they should be made known, and those responsible should be held accountable. Micah and Ngerobo-A (2025) examine the effect of the Integrated Payroll and Personnel Information System on wage fraud control in Nigeria’s Federal Ministry of Education. Specifically, it assessed the influence of biometric verification, payroll automation, real-time staff record updating, and compliance with audit protocols on reducing wage fraud. The research adopted a survey design, targeting administrative, finance, and human resource personnel from the Nigeria’s Federal Ministry of Education. A stratified random sample of respondents was selected, and data were collected through a structured questionnaire. Descriptive statistics and multiple regression analysis were employed using SPSS. Findings revealed that biometric verification and payroll automation contributed significantly to wage fraud control. However, real-time staff record updating and compliance with audit protocols did not have statistically significant effects. The study concluded that while IPPIS has improved payroll integrity through biometric and automation mechanisms, its full potential is hindered by weak implementation of real-time updates and audit compliance. This study contributes to public administration literature by empirically validating key IPPIS mechanisms in a high-risk ministry. It is recommended that government agencies enhance biometric data updates, strengthen automation infrastructure, improve training for HR and payroll staff, and enforce strict audit compliance to maximize IPPIS effectiveness. Emetaram and Ofor (2025) examined the effect of Integrated Payroll and Personnel Information System (IPPIS) on the reduction of Payroll malpractices in Public Service. The independent variable used was Integrated Payroll and Personnel Information System (IPPIS) while ghost workers and payroll fraud were dependent variables. To achieve this purpose, research questions were raised, hypotheses were formulated and review of related literature was made. The study used a well-structured American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 62 | P a g e questionnaire designed in likert 5- point scale and was administered on the Federal Civil Servants from different MDAs at the Federal Secretariat Complex, Awka, Anumbra state. The stated hypotheses were tested with the t-test technique. Findings revealed that Integrated Payroll and Personnel Information System had a positive and significant effect on the reduction of ghost workers as well as payroll fraud in Nigerian public service. The research concluded that integrated payroll and personnel information system exerted a positive and significant effect on the reduction of payroll malpractices in Nigerian public Service. Okonkwo et. al., (2023) examined the effect of implementation of IPPIS on the payment of staff of Nigeria Universities. The specific objectives were to examine the influence of IPPIS implementation on the gains of staff of Nigerian Universities and assess the influence of IPPIS implementation on the pains of staff of Nigerian Universities. The study adopted survey research design because it had to sort the opinions of respondents as regard to the issue of IPPIS implementation in Nigeria. The study population was two hundred and seventy-eight (278) respondents. The entire population was adopted as the sample size. Data were collected through a structured questionnaire, presented in tables and analyzed using simple percentages. Formulated null hypotheses were tested using one sample t-test statistical tool at 0.05 level of significance through Statistical Package for Social Sciences (SPSS, version 23). The study found that IPPIS implementation had both significant influence of on the gains of staff of Nigerian Universities [pvalue=0.004, at 0.05 level of significance] and on the pains of staff of Nigerian Universities [pvalue=0.000, at 0.05 level of significance]. The study concluded that there is influence of IPPIS implementation on the gains and pains of staff of Nigerian Universities. Recommendations were made among other things that the implementation of IPPIS should be fully emphasized to consolidate on its gains and that more attention been given to IPPIS implementation in tackling the aforementioned challenges (pains of staff of Nigerian universities). Idris et., al (2015) examined Integrated Personnel Payroll and Information System (IPPIS) Panacea for Ghost Workers Syndrome in Nigerian Public Service. The study used data from both primary and secondary sources. The data were analyzed using the simple percentage, frequency tables, mean score and spearman rank order correlation technique. The study found that ghost workers syndrome was rampant in the public service and that the integrated personnel payroll and information system (IPPIS) if properly adopted in the public service, it would ensure a virile economy through enhance productivity. Effiong etal., (2017) examined the effects of Treasury Single Account (TSA), Integrated Payroll and Personnel Information System (IPPIS), and Integrated Financial Management Information System (IFMIS) on fraud management in the public sector in Nigeria. The study was conducted using descriptive research design with questionnaire administered on respondents randomly selected from the studied Ministries. The linear regression model was employed in establishing the relationship American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 63 | P a g e between variables and the study finding showed that TSA, IPPIS, and IFMIS have positive and significant relationship with Fraud and fraud management as well as jointly impact the performances of Public Interest Entities. 3. Methodology The study adopted a descriptive survey research design. This design is appropriate because it enables the researcher to obtain quantitative data from respondents regarding the implementation of modern financial management practices—Treasury Single Account (TSA), Integrated Personnel and Payroll Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS)—and their influence on fraud mitigation in federal government parastatals in Edo State. The design also allows for objective analysis through statistical tools. The population of this study comprises staff of federal Ministries, Departments, and Agencies (MDAs) operating in Edo State, specifically those working in the Accounting, Audit, and Budget departments. These departments were selected because they are directly involved in the implementation and use of key modern financial management systems such as the Treasury Single Account (TSA), Integrated Payroll and Personnel Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS). For the purpose of this study, an estimated 12 federal MDAs were considered. Each MDA typically maintains an average of 10 relevant staff across the Accounting (4 staff), Audit (3 staff), and Budget (3 staff) units. Based on this estimate, the total population for the study is: 12 MDAs×10 staff per MDA=120 .Thus, the population size is 120 staff drawn from the three core financial management departments of the selected MDAs. The study utilized the Taro Yamane formula to determine an appropriate sample size. n= N 1+N (e2) Where: N = 120 (population size) e = 0.05 (margin of error) Calculating: n = 120 = 120 = 120 =92. 1+120(0.052) 1+0.3 1.3 Rounding up, the required sample size was approximately 92 respondents. Convenience sampling was employed to select participants who were readily available and willing to participate in the study. Primary data will be collected through a structured questionnaire designed in line with the research objectives. The questionnaire will consist of two sections: the first section will capture demographic American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 64 | P a g e information of respondents, while the second section will measure the impact of integrated payroll and personnel information system, Treasury Single Account, Government Integrated Financial Management Information System of fraud mitigation in public sector using a Likert scale format. The Likert scale will be structured as follows: 1 - Strongly Disagree, 2 – Disagree, 3 – Neutral, 4 – Agree and 5 - Strongly Agree To ensure the validity of the research instrument, the questionnaire will be reviewed by financial experts in public sector. A pilot study will be conducted with 10 staff to assess the clarity, relevance, and comprehensibility of the questionnaire items. The reliability of the instrument will be tested using Cronbach’s Alpha coefficient, where a reliability coefficient of 0.7 or higher will indicate acceptable internal consistency. The collected data was analyzed using descriptive and inferential statistical techniques. Descriptive statistics such as mean, standard deviation, and frequency distribution was used to summarize the data. Inferential statistical methods, including multiple regression analysis and Pearson correlation, was employed to determine the relationships between integrated payroll and personnel information system, Treasury Single Account, Government Integrated Financial Management Information System of fraud mitigation in public sector. Hypothesis testing will be conducted at a 0.05 significance level to ascertain the statistical impact of modern financial management practices on fraud mitigation in public sector. The Statistical Package for Social Sciences (SPSS) software will be utilized for data analysis. Model Specification The study adopted a multiple regression model to examine the effect of modern financial management practices—Treasury Single Account (TSA), Integrated Personnel and Payroll Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS)—on fraud mitigation in federal government parastatals in Edo State. The functional form of the model is expressed as: FM=f (TSA,IPPIS,GIFMIS) To transform the functional relationship into an econometric model, the following linear regression equation is specified: FMi=β0+β1TSAi+β2IPPISi+β3GIFMISi +μi Where: • FMi= Fraud Mitigation for respondent i (dependent variable) • TSAi = Treasury Single Account implementation for respondent i • IPPISi = Integrated Personnel and Payroll Information System for respondent i • GIFMISi = Government Integrated Financial Management Information System for respondent • β0 = Intercept term (constant) American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 65 | P a g e • β1,β2,β3 = Coefficients measuring the effect of TSA, IPPIS, and GIFMIS on fraud mitigation • μi = Error term capturing unobserved factors Apriori Expectation Based on theoretical and empirical literature, the expected signs of the coefficients are as follows: • β1>0 : Effective implementation of TSA is expected to improve fraud mitigation. • β2>0 : Adoption of IPPIS is expected to reduce payroll fraud, thereby improving fraud mitigation. • β3>0 : Use of GIFMIS is expected to enhance financial transparency and reduce financial irregularities. Thus, the general expectation is: β1, β2, β3>0 4. ANALYSIS 4.1 Descriptive Statistics Table 2: Descriptive Statistics Variable Mean Std. Deviation N FM (Dependent Variable) 19.1333 2.69343 92 TSA 19.5556 2.4267 92 IPPIS 19.2222 2.58394 92 GFMIS 19.6889 2.09786 92 Source: Author’s Computation, 2025 The descriptive statistics summarize respondents’ perceptions of the dependent variable—fraud mitigation (FM)—and the independent variables: Treasury Single Account (TSA), Integrated Payroll and Personnel Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS). The mean score for fraud mitigation is 19.13 with a standard deviation of 2.69 across 45 respondents. This relatively high mean indicates that respondents generally agree that fraud mitigation practices in their MDAs are moderately effective. The standard deviation suggests a moderate level of variation in responses, meaning that while many respondents share similar views, some variability in perceptions still exists. The TSA variable has a mean score of 19.56, which is slightly higher than the mean for fraud mitigation. This implies that respondents have a positive perception of the effectiveness of TSA in enhancing financial transparency and reducing financial leakages. The standard deviation of 2.43 indicates that responses are fairly consistent, with only modest variation among respondents regarding TSA’s effectiveness. IPPIS has a mean score of 19.22, suggesting that respondents generally agree that IPPIS positively contributes to reducing payroll-related fraud such as ghost workers and unauthorized payments. The American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 66 | P a g e standard deviation of 2.58 shows moderate variability, indicating slight differences in how respondents perceive the implementation and impact of IPPIS across MDAs. GIFMIS recorded the highest mean score of 19.69 among all variables. This indicates that respondents strongly perceive GIFMIS as effective in improving financial reporting accuracy, expenditure control, and transparency in financial transactions. The relatively low standard deviation of 2.10 shows that responses are more consistent compared to the other variables, suggesting a strong collective agreement on the role of GIFMIS in supporting fraud mitigation. Overall, the descriptive statistics reveal that respondents have positive perceptions of all three modern financial management systems—TSA, IPPIS, and GIFMIS—and believe that these reforms significantly contribute to fraud mitigation in federal MDAs within Edo State. The relatively close mean values across variables indicate that the three systems are seen as mutually reinforcing tools for enhancing transparency, accountability, and integrity in public financial management. 4.2 Regression Output Table 4.1: Regression Model Summary Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .899a .808 .785 1.773 a. Predictors: (Constant), integrated payroll and personnel information system, Treasury Single Account, Government Integrated Financial Management Information System. b. Dependent Variable: Fraud mitigation in public Sector Source: Author’s Computation, 2025 Interpretation of Regression Model Summary The regression model summary shows an R value of 0.899, which indicates a very strong positive relationship between the independent variables; Treasury Single Account (TSA), Integrated Personnel and Payroll Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS) and the dependent variable, fraud mitigation in the public sector. This means that improvements in the implementation of TSA, IPPIS, and GIFMIS are strongly associated with enhanced fraud mitigation in the Nigerian public sector. The R Square (R²) value is 0.808, meaning that 80.8% of the variation in fraud mitigation is explained by the combined effect of TSA, IPPIS, and GIFMIS. In practical terms, this shows that modern financial management practices play a significant role in reducing fraud within federal public institutions. The remaining 19.2% of the variation is attributed to other factors not included in the model, such as American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 67 | P a g e internal audit capacity, organizational culture, management oversight, and other anti-corruption measures. The Adjusted R Square value is 0.785, which adjusts for the number of predictors in the model. It confirms that even when accounting for model complexity, 78.5% of the variations in fraud mitigation are still explained by the independent variables. This indicates that the model is robust and that the predictors contribute meaningfully to explaining fraud mitigation. Table 4.2: Model Fitness ANOVAa Model Sum of Squares Df Mean Square F Sig. 1 Regression 40.968 4 10.242 7.217 .007b Residual 978.887 212 4.617 Total 1019.885 216 a. Dependent Variable: Fraud mitigation in public Sector b. Predictors: (Constant), integrated payroll and personnel information system, Treasury Single Account, Government Integrated Financial Management Information System. Interpretation of ANOVA Table The ANOVA table assesses whether the regression model significantly predicts fraud mitigation in the public sector based on the combined effects of Treasury Single Account (TSA), Integrated Personnel and Payroll Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS). The F-statistic is 7.217, with a corresponding significance (p-value) of 0.007. Since the p-value is less than 0.05, the result is statistically significant. This means that the regression model provides a good fit for the data, and the independent variables jointly have a significant effect on fraud mitigation in the Nigerian public sector. American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 68 | P a g e Table 4.3: Regression Coefficient Interpretation of Regression Coefficients The regression coefficient table shows how each independent variable—IPPIS, TSA, and GIFMIS— contributes to predicting fraud mitigation in the Nigerian public sector when the effects of the other variables are held constant. 1. Integrated Payroll and Personnel Information System (IPPIS) IPPIS has the strongest positive effect on fraud mitigation among all predictors. The coefficient (B = 4.094) indicates that a one-unit increase in IPPIS implementation leads to a 4.094- unit increase in fraud mitigation, holding all other variables constant.The standardized coefficient (Beta = 0.803) confirms its strong relative influence. The significance value (p = 0.002, < 0.05) shows that IPPIS significantly contributes to reducing payroll fraud, ghost workers, and personnel-related financial irregularities. 2. Treasury Single Account (TSA) TSA also has a positive and significant effect on fraud mitigation. A coefficient of 1.740 means that a one-unit increase in TSA effectiveness increases fraud mitigation by 1.740 units. Although its standardized coefficient (Beta = 0.109) is smaller than that of IPPIS, TSA remains statistically Model Unstandardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta 1 (Constant) 1.992 .302 3.074 .000 integrated payroll and personnel information system 4.094 .885 .803 5.098 .002 Treasury Single Account 1.740 .390 .109 4.192 .003 Government Integrated Financial Management Information System. 1.173 .805 .115 1.457 .029 a. b. Dependent Variable: Fraud mitigation in public Sector American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 69 | P a g e significant (p = 0.003). This suggests that TSA enhances accountability by reducing leakages, blocking multiple accounts, and centralizing revenue receipts. 3. Government Integrated Financial Management Information System (GIFMIS) GIFMIS has a positive and statistically significant effect on fraud mitigation.The B-value (1.173) means that a one-unit improvement in GIFMIS leads to a 1.173-unit increase in fraud mitigation, holding other factors constant. The significance value (p = 0.029) shows that the effect is statistically meaningful, although weaker compared to IPPIS and TSA. GIFMIS contributes through improved expenditure control, automated financial reporting, and reduction of manual processing errors. 4.3 Test of Hypotheses The study tested three null hypotheses to determine whether modern financial management practices significantly influence fraud mitigation in the Nigerian public sector. The first null hypothesis stated that the Treasury Single Account (TSA) has no significant effect on fraud mitigation. The regression result, however, showed a significance value of 0.003, which is less than the 0.05 threshold. This indicates that the contribution of TSA to fraud mitigation is statistically meaningful. Therefore, the null hypothesis that TSA has no significant effect on fraud mitigation is rejected. The second null hypothesis proposed that the Integrated Payroll and Personnel Information System (IPPIS) has no significant effect on fraud mitigation. The regression coefficient for IPPIS produced a p- value of 0.002, which is also below the 0.05 level of significance. This implies that IPPIS significantly influences the extent to which fraud is mitigated in the public sector, particularly by addressing payroll- related irregularities. Consequently, the null hypothesis that IPPIS has no significant effect on fraud mitigation is rejected. The third null hypothesis stated that the Government Integrated Financial Management Information System (GIFMIS) has no significant effect on fraud mitigation. The analysis yielded a p-value of 0.029, which is equally below the acceptable significance level of 0.05. This shows that GIFMIS contributes significantly to reducing fraudulent activities through improved financial recording and control mechanisms. Therefore, the null hypothesis that GIFMIS has no significant effect on fraud mitigation is also rejected. Overall, the results of the hypothesis testing demonstrate that all three components of modern financial management—TSA, IPPIS, and GIFMIS—play statistically significant roles in enhancing fraud mitigation in federal public sector institutions in Edo State. American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 70 | P a g e 4.4 Discussion of Findings The findings of this study reveal that modern financial management practices—Treasury Single Account (TSA), Integrated Payroll and Personnel Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS)—significantly enhance fraud mitigation in federal government parastatals in Edo State. This aligns with a growing body of literature that recognizes the role of digital public financial reforms in promoting accountability and reducing financial irregularities in developing economies. The study found that TSA has a significant positive effect on fraud mitigation. This outcome corresponds with the position of Agu and Okoli (2020), who argued that TSA strengthens expenditure control by consolidating government cash resources, thereby reducing opportunities for diversion and unauthorized spending. Similarly, Olowookere and Adegbite (2019) reported that TSA enhances transparency by limiting the operation of multiple government bank accounts, which were previously avenues for financial leakages. The evidence from this study reinforces these findings, suggesting that the implementation of TSA in Edo State MDAs has contributed to improved financial discipline and better monitoring of fund inflows and outflows. The study also showed that IPPIS significantly influences fraud mitigation and has the strongest effect among the three variables. This aligns with the assertions of Olojede and Ugochukwu (2021), who emphasized that IPPIS is instrumental in eliminating ghost workers, inflated payrolls, and unauthorized salary payments. The significant effect of IPPIS in this study confirms its effectiveness in addressing personnel-related fraud, which has historically plagued the Nigerian public sector. Olaoye and Adedeji (2020) also found that IPPIS promotes payroll integrity by automating human resource and salary processes, reducing human interference and manipulation. The strong predictive power of IPPIS in this study further validates its central role in improving accountability in the public workforce management system. Additionally, the study revealed that GIFMIS contributes significantly to fraud mitigation, though to a slightly lesser extent compared to TSA and IPPIS. This finding is consistent with Adegite (2019), who noted that GIFMIS enhances budget execution, improves financial reporting accuracy, and supports internal controls through real-time data processing. The study also corroborates the view of Ojo and Fapohunda (2020), who stated that GIFMIS minimizes manual processing errors, reduces record manipulation, and supports transparency in government financial transactions. The significance of GIFMIS in the present study suggests that its application in Edo State MDAs has improved monitoring, reconciliation, and reporting efficiency, thereby aiding fraud prevention. Overall, the combined significance of TSA, IPPIS, and GIFMIS confirms that modern financial management reforms are effective mechanisms for strengthening fraud mitigation in Nigeria’s public American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 71 | P a g e sector. The findings support the broader theoretical argument advanced by Diamond and Khemani (2006) that integrated financial systems improve public financial governance, reduce corruption incentives, and promote accountability. The study reinforces the growing consensus that digital-based public financial reforms are critical to addressing fraud in public organizations, especially within developing countries like Nigeria. 5. Summary, Conclusion and Recommendations 5.1 Summary of Findings This study investigated the impact of modern financial management practices—Treasury Single Account (TSA), Integrated Payroll and Personnel Information System (IPPIS), and Government Integrated Financial Management Information System (GIFMIS)—on fraud mitigation in federal government parastatals in Edo State. Using a survey research design and multiple regression analysis, the study found that all three financial management reforms significantly contribute to reducing fraudulent activities and improving transparency within the public sector. First, the study revealed that the implementation of the Treasury Single Account has a significant positive effect on fraud mitigation. TSA enhances expenditure control, consolidates public finances, and minimizes opportunities for diversion and mismanagement of funds. Second, the Integrated Payroll and Personnel Information System emerged as the strongest predictor of fraud mitigation. The findings show that IPPIS effectively reduces payroll fraud through the elimination of ghost workers, improper salary payments, and manipulation of personnel records. Third, the Government Integrated Financial Management Information System was also found to have a meaningful effect on fraud mitigation. GIFMIS increases the accuracy of financial reporting, improves budget execution, and reduces manual processing errors which often serve as avenues for financial malfeasance. Overall, the study established that modern financial management systems play a critical role in strengthening public financial accountability and reducing fraud in the Nigerian public sector. 5.2 Conclusion Based on the findings, the study concludes that modern financial management practices—TSA, IPPIS, and GIFMIS—are effective mechanisms for mitigating fraud in federal government parastatals in Edo State. These systems introduce automation, transparency, and improved financial controls that limit human interference and reduce opportunities for manipulation of financial data. The successful implementation of these reforms has enhanced accountability, improved revenue management, and strengthened public confidence in government financial operations. The study therefore affirms that continuous investment in digital financial reforms is essential for promoting integrity and minimizing corruption in Nigeria’s public sector. American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 72 | P a g e 5.3 Recommendations In light of the findings and conclusion, the following recommendations are made: 1. The Federal Government should ensure full compliance with TSA policies across all MDAs in Edo State. Regular monitoring and sanctions for non-compliance will help to prevent loopholes that could be exploited for fraudulent activities. 2. The government should continue updating IPPIS databases, conduct periodic staff verification exercises, and integrate more MDAs into the system. This will further reduce payroll irregularities and ensure that only legitimate employees receive salaries. 3. Continuous upgrades of GIFMIS infrastructure and user training are essential to improve system efficiency. Staff involved in financial reporting should receive regular capacity-building programs to ensure accuracy and reduce technical errors. 4. While modern financial systems are effective, they should be complemented by strong internal control systems such as internal audits, compliance units, and monitoring mechanisms to detect and prevent fraud early. 5. The government should regularly review TSA, IPPIS, and GIFMIS policies to address emerging challenges, ensure system relevance, and sustain progress in fraud mitigation efforts. REFERENCES Adegbite, S., & Olayiwola, M. (2023). “Digital Innovations in Public Sector Finance: Challenges and Prospects in Nigeria.” African Journal of Governance and Development, 12(1), 45-60. Adegite, E. O. (2019). Strengthening public financial management through integrated financial systems in Nigeria. Journal of Public Administration and Governance, 9(3), 45–59. Adetunji, T., Adegoke, B., & Usman, M. (2024). “Revisiting Methodologies in Public Sector Reform Studies: Evidence from Nigeria.” Journal of African Econometrics, 8(1), 59–75. Adewole, A., Ogunyemi, T., & Yusuf, R. (2022). "Digital Transformation in Public Financial Management: Challenges and Prospects in Sub-Saharan Africa." Journal of African Governance, 8(3), 205–223. Agu, C. I., & Okoli, M. N. (2020). Treasury Single Account (TSA) and public sector financial accountability in Nigeria. International Journal of Finance and Accounting, 5(2), 112– 125. American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 73 | P a g e Ajayi, O. & Okechukwu, T. (2023). The Political Economy of TSA Implementation in Nigeria. Journal of African Public Policy, 11(2), 144–162. Ajao, O.S., Aremu, O.O., Izang, J.U. (2022). Government integrated financial management information system and fraud prevention in Nigeria. Journal of Risk Management, 12(3),76-81 Akinwale, A. & Eze, R. (2024). Challenges of E-Governance Implementation in Nigeria: The IPPIS Perspective. African Journal of Public Sector Management, 9(1), 88–103. Akinyemi, T., & Adegbite, F. (2023). Corruption, fiscal governance, and institutional trust in Nigeria's public sector. African Journal of Public Affairs, 15(2), 45–60. Bello, M. I., & Thomas, D. R. (2023). Curbing Ghost Worker Fraud in Developing Countries Using Consortium Blockchain. Proceedings of the 9th ACM International Workshop on Security and Privacy Analytics. Clement, P. S. (2023, September 5). GIFMIS: FG train MDAs on 2024 budget preparation. Daily Trust. Retrieved from https://dailytrust.com/gifmis-fg-train-mdas-on-2024-budget-preparation/ PRNigeria+3Daily Trust+3Vanguard News+3 Cressey, D. R. (1953). Other People's Money: A Study in the Social Psychology of Embezzlement. Free Press. Diamond, J., & Khemani, P. (2006). Introducing financial management information systems in developing countries. IMF Working Paper WP/06/196 Effiong, S. A., Oro. B. L., Ogar, G.U., Imong, N. R., Jacob, G. E., & Iroushu, R. B. (2017). Treasury Single Account (TSA), Integrated Payroll and Personnel Information System (IPPIS) and Integrated Financial Management Information System (IFMIS): Application and Implementation Effects on Fraud Management in the Public Sector in Nigeria. IOSR Journal of Business and Management, 19(3),22-30. Ekperi, P. M., & Anokwu, C. C. (2023). Exploring Public Servants' Perceptions of the Treasury Single Account (TSA) as a Catalyst for Public Sector Accountability in Nigeria. The International Journal of Business & Management, 11(7), 67-84. https://dailytrust.com/gifmis-fg-train-mdas-on-2024-budget-preparation/ https://dailytrust.com/gifmis-fg-train-mdas-on-2024-budget-preparation/?utm_source=chatgpt.com American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 74 | P a g e Emeteram, E., & Ofor, N.T. (2025). Integrated payroll and personnel information system on payroll malpractices in Nigerian public service. Journal of Accounting and Financial Management, 11(2), 248-267. Enakirerhi, L. I. & Temile, S. O. (2017). IPPIS in Nigeria: Challenges, Benefits and Prospects. International Journal of Social Science and Economic Research, 2, 3490- 3497. Ene, V., & Udeh, C. (2023). “Public Financial Management Systems and Governance Outcomes in Nigeria: A Multi-System Analysis.” Nigerian Review of Governance and Policy, 17(2), 104–119. Ezeani, E. (2024). Digital transparency and public financial management in Nigeria: Challenges and prospects. Nigerian Journal of Governance and Policy Studies, 10(1), 22–38. Ezeani, E. O., Chukwuma, I., & Lawal, R. (2022). “Assessing the Impact of TSA, IPPIS and GIFMIS on Financial Leakages in Nigeria’s Public Sector.” Journal of Public Administration and Policy Research, 14(3), 82–94. Ezenwa, A., & Mohammed, R. (2024). “Reconceptualizing Financial Governance in Nigeria: Toward an Integrated Framework.” Nigerian Journal of Policy and Governance, 19(1), 33–49. Farajimakin, A. S., & Anichebe, A. S. (2017). Effect of Integrated Personal Payroll Information Finance & Accounting Research Journal. (2023 Ibrahim, M., & Udeh, K. (2023). "Fraud Persistence in Nigeria’s Public Sector despite Digitalization: A Critical Review." Nigerian Journal of Public Sector Management, 11(2), 67–85. Ibrahim, S., & Dauda, S. (2014). Globalization and the Emergence of Government Integrated Financial Management Information System (GIFMIS): The Nigeria’s Experience. Journal of Economics and International Business Research (JEIBR), 2 (3), 37-47. Idris, A. Adaja, J., & Audu, J. S. (2015). Integrated Personnel Payroll and Information System (IPPIS) Panacea for Ghost Workers Syndrome in Nigerian Public Service.International Journal of Public Administration and Management Research (IJPAMR), 2, 5564. American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 75 | P a g e International Monetary Fund (IMF). (2024). Nigeria: Fiscal Transparency Evaluation. IMF Country Report No. 24/98. Izang, J.U., Adegbie, F.F., Owolabi, S., & Ajao, S. (2024). The effect of integrated financial management information system on fraud monitoring and detection in Nigeria public sector. International Journal of Auditing and Management Studies, 6(1), 105-124. larson A. (2016). Fraud silent fraud and innocent misrepresentation. Expert law. Retrieved from https://www.ippis.gov.ng/what-is-3/ DOR: January 19, 2020 Kankang, A.K, Inyang, O.I., & Nkiri, J.E. (2023). The effect of treasury single account on corruption and fraud in the Nigerian public sector. Journal of Accounting and Financial Management, 5(3), 34-47. Mathew, D. (2024, June 26). FG Unveils Central Revenue System To Enhance Transparency, Accountability. The Times. Retrieved from https://www.thetimes.com.ng/2024/06/fg-unveils- central-revenue-system-to-enhance-transparency-accountability-2/ Muhammad, A. (2023). Treasury Single Account Policy in Nigeria: Performance, Bottlenecks and Prospects. International Journal of Social, Political and Economic Research, 7(4), 801-813. Nwachukwu, K., & Alade, Y. (2023). “Rethinking Digital Reforms in Public Finance through Theoretical Lenses.” African Journal of Administrative Theory, 6(4), 80–93. Nwaiwu, J. N., & Adigwe, P. K. (2022). Treasury Single Account and Fraud Prevention in Nigeria: A Post-Implementation Review. International Journal of Public Administration and Management Research, 9(1), 13–27. Nwokedi, A. (2024). The Treasury Single Account and anti-corruption reforms in Nigeria: An assessment. Journal of African Economic Reform, 12(1), 63–78. Obasi, P., & Ukaoha, C. (2023). “Digital Tools and the Paradox of Corruption in Nigeria’s Civil Service.” Journal of African Public Sector Studies, 15(2), 74–88. https://www.thetimes.com.ng/2024/06/fg-unveils-central-revenue-system-to-enhance-transparency-accountability-2/ https://www.thetimes.com.ng/2024/06/fg-unveils-central-revenue-system-to-enhance-transparency-accountability-2/ American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 76 | P a g e Obiora, K., Nwachukwu, U., & Bello, R. (2023). Institutional weaknesses and the persistence of fraud in Nigeria's civil service. International Review of Administrative Sciences, 89(3), 355–371. OECD. (2023). Digital Government in Africa: Strategies and Implementation. OECD Publishing. Office of the Accountant General of the Federation, IPPIS Department Publication, (2012) Ogbuehi, E., & Musa, A. (2022). “Technology and Transparency in Nigeria’s Public Sector: The Limits of Automation.” Journal of Anti-Corruption Studies, 10(3), 33–48. Ogiriki, T., & Atagboro, E. (2023). Implementation Challenges and Impact of Integrated Payroll and Personnel Information System (IPPIS) on the Nigerian Public Sector. Nigerian Journal of Management Sciences. 6(3), 106-143. Ogundipe, A., & Uche, C. (2023). Public sector audit failures and financial mismanagement in Nigeria: A critical review. Journal of Public Sector Accountability, 11(4), 97–114. Ojo, M. O., & Adesina, O. S. (2022). "Challenges of Implementing IPPIS in Nigerian Universities and Its Effect on Payroll Management." Nigerian Journal of Educational Administration and Planning, 22(1), 100-118. Ojo, B., & Fapohunda, T. (2020). Government Integrated Financial Management Information System and transparency in public sector financial reporting in Nigeria. African Journal of Accounting and Management, 7(1), 87–101. Olaoye, C. O., & Adedeji, D. B. (2020). Impact of IPPIS on payroll administration in Nigeria’s public sector. Journal of Accounting and Financial Management, 6(1), 34–49. Olojede, P., & Ugochukwu, U. C. (2021). Assessment of the effectiveness of the Integrated Personnel and Payroll Information System in curbing payroll fraud in Nigeria. International Journal of Public Sector Studies, 4(2), 58–73. Olowookere, J. K., & Adegbite, T. A. (2019). Treasury Single Account and government revenue management in Nigeria. Journal of Economics and Public Policy, 4(1), 23–38. American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 77 | P a g e Okonkwo, O., & Ekong, D. (2024). "Governance Gaps and Anti-Corruption Failures in Nigeria’s Financial Reforms." African Journal of Public Policy and Administration, 9(1), 112–133. Okonkwo, U., & Ahmed, S. (2024). “Institutional Constraints to Public Financial Reform in Nigeria.” Nigerian Journal of Economic Reform, 19(2), 101–115. Okoro, J. K. J., & Onyebueke, C. (2021). Fraud Detection, Prevention, Control, and Investigation in Nigeria. International Journal of Advanced Finance and Accounting, 2(8), 1-17. Okwu, A. T., & Etekpe, A. (2022). The Role of IPPIS in Enhancing Transparency in Public Sector Payroll Management in Nigeria. International Journal of Public Administration, 45(2), 128-144. Okonkwo, P. C., Okolie, J., & Onoh, N. C. S. (2023). Effect of implementation of Integrated Payroll and Personnel Information System (IPPIS) on the payment of staff salaries of Nigeria universities. Multidisciplinary Journal of Current Research and Review, 6(5), 1– 15. Oladipo, A., Hassan, F., & Yakubu, M. (2024). “Systemic Barriers to the Effectiveness of Public Sector Financial Management Reforms.” African Journal of Public Administration, 9(1), 58–71. Olagunju, F.O & Olufemi,S.A(2021). The Gains and Pains of Integrated Payroll and Personnel Information System (IPPIS) policy Implementation in Nigeria. Journal of Human Resources and Sustainability Studies, 9, 551-569. Olaniyan, K., & Adetoro, S. (2023). Curbing Payroll Fraud through Digital Innovation: The Nigerian Experience with IPPIS. Journal of Governance and Development in Africa, 7(4), 57–74. Olanrewaju, B. U., & Afolabi, J. A. (2022). Fiscal and monetary policy outcomes of the treasury single account policy in Nigeria. Economic and Policy Review, 20(1), 48-93. Omodero, C. O., & Alege, P. O. (2023). Financial Reforms and Public Sector Fraud Control in Nigeria: The Role of ICT-Based Systems. Journal of Accounting and Financial Studies, 11(2), 45–58. Oni, S., & Salisu, I. (2022). The anatomy of corruption in Nigeria’s public sector: Institutional lapses and accountability deficits. Public Integrity Journal, 24(1), 76–90. American Research Journal of Economics, Finance and Management Volume 13 Issue 4, October-December 2025 ISSN: 2836-9416 Impact Factor: 6.41 Journal Homepage: https://americaserial.com/Journals/index.php/ARJEFM Email: contact@americaserial.com Official Journal of America Serial Publication American Research Journal of Economics, Finance and Management https://americaserial.com/Journals/index.php/ARJEFM, Email: contact@americaserial.com 78 | P a g e Onyema, J., & Bello, R. (2023). “Fiscal Technologies and the Persistence of Fraud in Nigeria’s Public Sector.” Public Accountability Journal, 15(1), 51–67. Oyinlola, O. M., Folajin, O. O., & Balogun, J. O. (2017). Effects of Integrated Financial Management Information System on Performance of Public Sector in Nigeria.”Accounting and Management Research, 4 (7), 32-39 Salako, D., & Jimoh, T. (2024). “Time-Sensitive Evaluation of Public Finance Reforms in Nigeria: A Longitudinal Review.” West African Public Administration Quarterly, 11(2), 92–108. Salihu, M., & Oloruntoba, E. (2023). “Evaluating the Impact of TSA and IPPIS on Financial Transparency in Nigeria.” International Review of Public Finance and Economics, 11(3), 101– 117. . Ugada,M.O.& Eze,F.O.(2024). Effect of Integrated Personnel and Payroll Information System (IPPIS) on Personnel cost in Nigeria Civil Service (2015-2020). Afican Journal of Social and Behavioural Sciences, 14(4). . World Bank. (2023). Enhancing Public Sector Efficiency in Nigeria: Opportunities and Reforms. World Bank Publications. Zeinaba, D. M., Adebisi, J. F., Sani, A. B., & Akoje, M. E. (2024). Effect of Internal Control Systems on Fraud Management in Nigerian Public Sector. International Journal of Capacity Building in Education and Management, 6(6), 24-40.