Bridging the Accountability Gap: How Good Governance Bolsters Audit Integrity in Fragile Sub-National Settings

Abstract

Financial mismanagement within Nigeria’s sub-national governments continues to pose a major constraint to sustainable development outcomes. This study examines the relationship between key public sector audit dimensions, independence, accuracy, compliance, transparency, and credibility, and institutional accountability in Zamfara State. The analysis is anchored on Agency Theory and Institutional Theory, providing a dual lens for understanding how audit mechanisms function within constrained governance environments. The findings point to a reinforcing cycle of challenges, described as a “triad of dysfunction,” in which insecurity, weak development structures, and financial leakages mutually intensify one another. Evidence from the 2023 Zamfara State Public Accounts Committee report indicates that approximately 30% of local government funds were not properly accounted for between 2019 and 2023. These underscores persistent weaknesses in financial oversight and enforcement mechanisms at the sub-national level. The study further conceptualizes good governance as a moderating variable, arguing that the effectiveness of audit functions is not purely technical but heavily dependent on institutional context. Specifically, factors such as rule of law, enforcement capacity, and political commitment significantly shape how audit processes translate into accountability outcomes. In general, the study suggests that strengthening audit quality alone is insufficient without parallel improvements in governance structures that support transparency, enforcement, and institutional integrity.