Governance oversight in public finance is the moral compass and strategic guidepost that ensures the integrity, transparency, and accountability of national resources. In an era where public trust in institutions is rapidly eroding due to mismanagement, lack of transparency, and widespread financial irregularities, the role of governance cannot be overstated.

Recent national headlines have brought to public consciousness another unsettling case of financial opacity, drawing attention to a staggering ₦210 trillion financial gap discovered during a Senate investigation. While the details of this case remain subject to ongoing probes, its sheer scale underscores one of the most critical questions of our time: Who watches over the stewards of public wealth?

Oversight, in its purest form, is not merely about control or bureaucratic scrutiny; it is about responsible governance. Public finance, on the other hand, is the lifeblood of national development, and every failure of oversight echoes in the broken promises of roads not built, hospitals not funded, salaries unpaid, and futures denied.

Governance monitoring mechanisms are supposed to serve as guardians against fiscal recklessness and to ensure that public expenditure aligns with both the law and the national interest. However, when these mechanisms are weak, compromised, or ineffective, they become complicit in the very malfeasance they are meant to prevent.

The Nigerian Code of Corporate Governance (NCCG) 2018 was introduced as a robust response to systemic failures in accountability and governance. Its principles are designed to strengthen transparency, ethics, and accountability in both the public and private sectors.

For instance, Principle 1 emphasises the establishment of effective boards with clearly defined roles, while Principle 6 focuses on accountability and audit, stating unequivocally that boards should ensure integrity in financial reporting and establish internal sound control systems. Had these principles been adhered to across public institutions, the recent lapses marked by undocumented receivables and untraceable expenditures might have been averted or at least swiftly corrected.

The NCCG 2018 also stresses the importance of transparency (Principle 9), recommending that organisations should ensure timely and balanced disclosure of all matters that will assist stakeholders in assessing their performance and financial health. Unfortunately, what has often played out in the public sector is the opposite: opacity, delayed disclosures, and unverifiable financial statements. These practices violate the spirit and letter of corporate governance and erode confidence in institutions.

The implications of this regulatory breach go beyond technical inefficiencies they threaten investor confidence, international reputation, and citizen welfare. In particular, they undermine Nigeria's transition under the Petroleum Industry Act (PIA), which seeks to restructure public enterprises like the Nigerian National Petroleum Company into commercially viable, accountable entities. Without robust oversight, such reforms will falter at the altar of entrenched interests and weak accountability structures.

Moreover, the deliberate avoidance of scrutiny by top executives observed during recent legislative probes points to a deeper cultural and institutional dysfunction. Directors and executive management, as outlined in Principles 3 and 4 of the NCCG 2018, are expected to demonstrate a strong sense of responsibility, ethical conduct, and leadership in upholding sound governance.

Absence from accountability forums, delegation to unqualified subordinates, and non-disclosure of material facts all amount to dereliction of duty and should be condemned, investigated, and punished accordingly. Considering these issues, there are critical lessons for directors and organisations in both the public and private sectors.

Directors Role

Board members must not serve as ceremonial figureheads but must actively engage in financial oversight and risk management. Boards should institutionalise rigorous internal audit systems and whistleblower frameworks to detect and deter fraud. Public sector entities must align with governance principles not as a formality, but as a strategic necessity.

Directors must see themselves as custodians of the public interest and not just agents of political survival. Organisational culture must shift from secrecy to transparency. Leaders must create a culture where accountability is non-negotiable, and every financial record tells a clear story.

 The full implementation of the Nigerian Code of Corporate Governance (NCCG) 2018 across all public sector institutions must no longer be treated as an aspirational ideal but as a binding imperative. Ensuring that compliance is monitored by independent and empowered bodies is key to restoring trust and discipline in public finance oversight. Alongside this, there is a pressing need to fortify whistleblower protection laws to create a secure environment for individuals to expose financial irregularities without fear of reprisal or professional ruin.

In tandem with these structural reforms, the adoption of digital tools, particularly blockchain-based public finance systems, would radically transform traceability, enhance real-time fund monitoring, and significantly reduce opacity in financial transactions. These technological interventions are no longer futuristic luxuries but necessary safeguards in an era where financial impropriety can cripple national growth.

Complementing technological innovation is the urgent need for institutionalized capacity-building programs tailored for public board members. Understanding fiduciary responsibilities, ethical leadership, and the broader architecture of corporate governance is crucial for directors who wield decision-making power over public resources. Without such knowledge, oversight becomes ceremonial rather than substantive.

Moreover, genuine reform will remain elusive unless there is a robust partnership between the legislature and the executive arms of government. Collaborative reform efforts must focus on closing legal loopholes, strengthening enforcement frameworks, and ensuring that audit reports transition from dusty shelves into actionable items with consequences. Legal frameworks that fail to act decisively on audit queries or infractions only embolden malfeasance.

Conclusion

Ultimately, Nigeria’s journey toward economic transformation will not be charted by resource endowment alone, nor by the mere announcement of progressive policies. It will be defined by the nation’s ability to institutionalise transparency, nurture credible institutions, and consistently enforce accountability. Governance, therefore, is not a bureaucratic formality; it is the moral and operational backbone of financial integrity and national credibility.

The stakes are too high for complacency. As citizens, development partners, and international observers demand higher governance standards, Nigeria must rise to the occasion. To quote Thomas Jefferson, "The whole art of government consists in the art of being honest." In the battle for public accountability, honesty must be systematised, not just preached.

Research & Advocacy Unit,