FISCAL TRANSPARENCY AND ACCOUNTABILITY IN DEVELOPING ECONOMIES PUBLIC FINANCE: THEORETICAL PERSPECTIVES ON CHALLENGES AND OPPORTUNITIES

Abstract

Fiscal transparency and accountability are essential pillars of effective public financial management, particularly in developing economies where governance challenges persist. This paper explores the theoretical foundations, challenges, and opportunities associated with fiscal transparency and accountability, with a focus on Nigeria. Drawing on global and regional experiences, the study highlights the role of international frameworks such as the International Monetary Fund’s Fiscal Transparency Code and the Public Expenditure and Financial Accountability (PEFA) framework in shaping fiscal governance. Despite ongoing reforms, Nigeria continues to face significant hurdles, including institutional weaknesses, political interference, revenue volatility, and corruption, which impede the implementation of transparency initiatives. However, emerging opportunities such as digital financial management systems, institutional reforms, and civil society engagement provide pathways for improvement. Case studies from Brazil, South Africa, Rwanda, and Ghana illustrate successful fiscal transparency strategies, offering valuable lessons for Nigeria and similar economies. The study concludes that strengthening institutional capacity, leveraging technology, and fostering stakeholder engagement are critical to advancing fiscal transparency and accountability in developing nations.