Ways Government Should Control Fraud In Nigeria

Ways Government Should Control Fraud In Nigeria

Nigeria is a country that practice mixed Economy. This is a system in which both the private and public ownership of means of production and distribution exists together in a country.

There is a high level of corruption and mismanagement of resources in mixed Economy. Currently Now there is a high rate of fraud in Nigeria and this was the result of corruption occuring in the country.

Since corruption is on ground it has lead to a high rate of fraud in the country. Our leaders and public officials embleze  money from the public purse and use it for their own interest and left the citizens to suffer.

How Can Nigeria Prevent Fraud

Although the country has adopted all the neccessary system a country can use to prevent fraud But still yet the rate of fraud in the country is of increase. How could that be and how can fraud still be prevented? Nigeria had adopted the most effective system in fraud control But the system is not functioning the way it made to work. Let examine the below method Nigeria can use to control fraud.

1. The system of checks and balances: You will agree with me that this system have been on ground ever since But it not functioning. If the system of checks and balance is really enhance, it Will ensure no one person has control over all parts of a financial transaction such that:

A. Required purchases, payroll and disbursements to be authorised by a designated person

B. Separate handling ( receipt deposit ) functions from record keeping functions ( recording transactions and reconciling accounts )

C. Separate purchasing functions from payables functions

D. Ensure that the same person Ian't authorised to Write and sign a check.

E. When opening mails, endorse or stamp checks " for deposit Only " and list checks on a Long before turning them over to the person responsible for depositing receipts.

F. Required supervisors to approve employees time sweets before payroll is prepared.

G. Required paychecks to be distributed by a person other than the one authorizing or recording payroll checks.

H. If the agency is so small that you can't separate duties, Require an independent checks of work being done, for example by a board member.

I. Require accounting department employees to take vacations.

If the system of checks and balances could work without bias and make to function the way it should work just as listed above, fraud will be prevented in Nigeria.

2. The zero based budgeting:. This is a method of managing money so that every money is accounted for. This Type of budgeting provide a deeper understanding of where your money is going and how you can better manage it.

HOW ZERO BASED BUDGETING WORKS.

The idea behind zero based budgeting is that when you subtract your expenses from your income for a guven month, the difference is zero. You achieve this balance by Essentially assigning a Job to every money you earn.

The zero based budget is a panacea for challenge of corruption in the country Nigeria. Zero based budgeting is founded on the concept that the need is to consider relative values rather than comparative cost. This is a process based on Economy goals and the objectives are converting the Economy activities into decision package and allocating resources based on priorities/cost by the Governors. The zero based budgeting gives insight to management in that area. We know that our transparency is zero, the management Team of the country should apply the use of zero based budgeting as this will reduce fraud in the system.

All this i have mention Nigeria have adopted them But the truth is that they are not functioning. If they are made to work and function the way they should, There would be no fraud in the Nigeria.

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