IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 4. Ver. V (Apr. 2014), PP 46-54 www.iosrjournals.org www.iosrjournals.org 46 | Page The effects and effectiveness of Accountability and Transparency in Government Sectors OSHO, Augustine E 1 , AFOLABI, Matthew B 2 1 Bursary Department, Ekiti State University, P. M. B. 5363, Ado Ekiti, Nigeria 2 Accountancy Department, Federal Polytechnic, P. M. B. 5351, Ado Ekiti, Nigeria. Abstract: The study examined and ascertained the extent to which accountability, effectiveness and efficiency mechanism are being promoted and the problems that serve as hindrances to this in Ekiti State. All the data used were both the primary and secondary. Data were primarily gathered through questionnaires administered to the employees of the Nigerian Government Enterprises selected from ministries of Health, Education, Agriculture and Finance sectors at all levels of management. Secondary data were obtained through various magazines of professional associations in Nigeria, journals, newspaper and text books etc and mostly through the internet. Cross tabulation and chi-square were used to analysed the data and the study revealed that the internal control system in the state are very weak, accountability are as well ineffective due to political interference. Base on the findings, effective internal control systems that are free from interference will be needed. This will require political will at both the federal, state and local government areas. Keywords: Accountability, Financial Accountability, Financial Control Systems, Government Activities, Government Sectors, Growth, Transparency I. Introduction Financial accountability is ultimately about promoting and reporting public and performance. Public financial accountability requires that governments manage finance prudently; that they integrate their financial and non financial reporting, control, budgeting and performance; that they report comprehensively on what they achieved with their expenditure of funds, and that stakeholders behave ethically. Any organization (public or private) that manages and reports on its finance, mitigates the risk of malfeasance, builds good quality and openness into its financial and non-financial analyses, monitors the sustainability of benefits that accrue from its investments, and fulfils its performance reporting and fiduciary obligations to its constituents reflects sound financial accountability. Manifesting financial accountability is therefore much more than building and maintaining accounting and auditing systems. It represents more than just the technical capability of financial managers. Accountability is not complete until it encompasses the wide - ranging activities, attitudes and reporting between stakeholders. Therefore, while the borrower’s fiduciary accountability to the Bank on the use of project funds is important, the country’s fiduciary relationship to its citizen to the use of all public resour ces (including donor fund) has greater significance. This public aspect of accountability is what differentiates the outlook of a commercial bank from that of a development bank. Accountability is a concept in ethics and government with several meanings. It is often used synonymously with several meanings. It is often used synonymously with such concepts as responsibility, answerability, blame worthiness, liability and other terms associated with the expectation of account giving. As an aspect of governance, it has been central to discussions related to problems in the public sector, non-profit and private (corporate) worlds. In leadership roles, accountability is the acknowledgement and assumption of responsibility for actions, products and policies including the administration, governance and the implementation within the role or employment position and encompassing the obligations to explain and answerable for the resulting consequences. Accountability in financial control on government enterprises is seen as a major drive to attaining economic development, but the reverse is the case in all government establishments in Nigeria because the managers of government businesses are not loyal, honest and trustworthy in the discharge of their various responsibilities. Hence, this paper tries to highlight the various causes and solution to the replete nature of accountability in the socialist economy, where the government of Nigeria is a major stakeholder and the sole controller of her businesses. With the steady growth of public enterprises in Nigeria, government activities have been increasing and more funds are being expended in pursuit of development. Greater autonomy in local government administration and trends at privatization in some sectors, the character, scope and dimensions of public accountability have now been extended over greater horizons with increased public consciousness, the demand for public