EFFECT OF FINANCIAL FRAUD MAGNITUDE ON SERVICE DELIVERY PERFORMANCE IN NIGERIAN PUBLIC SECTOR ORGANIZATIONS

Abstract

This study investigates the impact of financial fraud magnitude on service delivery performance within selected public sector organizations in Nigeria. The research specifically examines how the amount of financial fraud and the frequency of fraud detections affect the Service Delivery Index. Using an ex post facto research design covering the period from 2011 to 2023, the study employs a stratified sampling method to select twelve public sector organizations. Regression analysis, including panel estimation techniques, was utilized to analyze both cross sectional and time series data, ensuring robust results. The findings reveal a significant negative relationship between the amount of financial fraud and the Service Delivery Index, with a p-value of 0.0000. This indicates that increased financial fraud is associated with a decline in service delivery performance, suggesting challenges in effectively managing fraud within these organizations. Additionally, the analysis shows a negative and significant impact of the number of fraud detections on the Service Delivery Index, with a p-value of 0.0036 and a t statistic of 3.827113. This suggests that higher frequencies of fraud detection are linked to poorer service delivery outcomes, highlighting potential inefficiencies in the fraud detection processes. The study concludes by emphasizing the need to address the challenges related to financial fraud and improve fraud detection mechanisms to enhance service delivery performance in Nigeria's public sector