Research Article

Internal Control System Effectiveness and Procurement Fraud Prevention in the Public Health Sector: Evidence from Nigeria

Dongo, Samuel Moses1*, Martins Kutus2, Daniel Orsaa Gbegi3
1 University of Jos
2 UNIVERSITY OF JOS
3 Federal University of Kashere, Gombe State, Nigeria
* Corresponding author: samueldongo2018@gmail.com
Published: Jul, 2026
Pages: 140-155

Abstract

This paper examines internal control system effectiveness and procurement fraud prevention in the public health sector: Evidence from Nigeria. For the purpose of this study, survey research design method was adopted. As far as data was concern, primary source of data was adopted through the issuance of a well-structured 5-point Likert scale Questionnaire. A total of Four (4) Hypotheses were tested. Data were analyzed using multiple regression analysis and also underwent the processes of Editing and Tabulation. The result indicated that control environment, risk assessment, Control activities, information and Communication have positive significant effectiveness on procurement fraud prevention in the public health sector It was recommended that organizations must systematically identify the risk factors inherent in the procurement process and conduct an adequate risk assessment in a bid to prevent procurement fraud incidence.

Keywords

Internal Control System Procurement Fraud Prevention control environment risk assessment

References

  1. Achanya, J. J. (2025). Assessing the effectiveness of the 2007 Public Procurement Act Against public procurement fraud in Nigeria. International Journal of Academic Information Systems Research, 9(6), 164- 176.
  2. Adenodi, D. W., Okehigbeme, I. S., & Eneh, N. (2025). Effect of procurement fraud detection and prevention on organizational integrity in public sector organizations in Nigeria. Journal of Finance and Accounting Research, 7(1), 135- 165.
  3. Aminat Arike Ariyo- Edu. (2025). Impact of Internal Control System on Prevention of Fraud in the Public Sector in North Central Nigeria. Journal of Accounting, Finance, and Contemporary Management Research, 1(2), 66- 83.
  4. Ariyo- Edu, A. A. (2025). Impact of internal control system on prevention of fraud in the public sector in North Central Nigeria. Journal of Accounting, Finance, and Contemporary Management Research, 1(2), 66- 83.
  5. Association of Certified Fraud Examiners. (2022). Occupational fraud 2022: A report to the nations. ACFE.
  6. Awotomilusi, N. S., Emmanuel, O. O., Ajibade, D. S., & Muyiwa, D. E. (2023). Assessing the effectiveness of internal control systems on fraud prevention and detection of selected public institutions of Ekiti State, Nigeria. Asian Journal of Economics, Finance and Management, 5(1), 231- 244.
  7. Brignac, F. (2011). Comparison of four differential DNA extraction methods for forensic samples (Doctoral dissertation, University of North Texas Health Science Center). University of North Texas Health Science Center Institutional Repository
  8. COSO. (2013). Internal control — Integrated framework. Committee of Sponsoring Organizations of the Treadway Commission.
  9. Committee of Sponsoring Organizations of the Treadway Commission. (2013). Internal control—Integrated framework. COSO.
  10. Edori, D. S., & Iwene, S. O. (2025). Fraud control measures and prevention of payroll fraud in public sector parastatals in Nigeria. International Research Journal of Accounting, Finance and Banking, 16(3), 1- 13.
  11. Jayne, B., & Laura, S. (2017). Good internal control practices and fraud control tips. European Journal of Business and Management, 13(13), 5.
  12. Kanu, N. O., Ugwudioha, O., & Azu, N. P. (2025). Effect of internal control system on the preention of fraud in the Central Bank of Nigeria. International Journal of Economics and Financial Issues, 15(5), 407- 415.
  13. Kimani, H. (2025, January 29). Fundamentals of COSO framework (Key components and principles!) Centre for Corporate Governance. Retrieved from https://ccg.or.ke/fundamentals- of- coso- framework/
  14. Guardian Nigeria. (2025, March 18). Contract, procurement fraud bedevilling Nigeria's health sector - ICPC boss. The Guardian Nigeria.
  15. Layne, J., & Laura, K. (2017). Internal controls and organizational processes. McGraw- Hill
  16. Mwithi, J. M., & Kamau, J. N. (2015). Strategies adopted by commercial banks in Kenya to combat fraud: a survey of selected commercial banks in Kenya. International Journal of Current Business and Social Sciences, 1(3), 1- 18.
  17. Mwakajila, G. G., & Kipilimba, T. (2025). Effectiveness of internal control system as a tool for fraud control at Mbeya Zonal Referral Hospital. International Journal of Social Science and Human Research, 8(10), 8137- 8146.
  18. Nolan, D. P. (2017, September). Procurement fraud - an old fraud flourishing in emerging markets and costing businesses billions. Financier Worldwide.
  19. Odunko, S. N. (2022). Internal control and firm performance: Evidence from selected firms in Nigeria (2015- 2020). International Journal of Innovative Finance and Economics Research, 10(1), 68- 80.
  20. Okonkwo, I. V., & Linda, E. N. (2016). Internal Control Techniques and Fraud Mitigation in Nigerian Banks. Journal of Economics and Finance, 7 (5), 37- 46.
  21. 0koye, E. I., Maimako, S. S., Jugu, Y. G., & Jat, R. B. (2017). Principles of fraud investigation and forensic accounting. SCOA Heritage Nigeria Ltd.
  22. Organisation for Economic Co- operation and Development. (2016). Preventing corruption in public procurement. OECD Publishing.
  23. Rafindadi, A. A., & Olanrewaju, Z., A. (2019). Internal Control System, Sustainable Management and Service Delivery of Non- Governmental Organizations in Nigeria: An Empirical Analysis. International Review of Management and Marketing, 9(2), 89- 103.
  24. Sauser, M. (2007). The nature, Extent and Economic impact of fraud in the UK. Journal of Forensic Accounting Investigations.
  25. Seda, L., & Tilt, C. (2023). Fraud control in the public sector: An institutional perspective. Public Money & Management, 43(4), 256- 264.
  26. Transparency International. (2014). Curbing corruption in public procurement: A practical guide. Transparency International.
  27. Wolfe, D & Hermanson, A. (2004). The Fraud Diamond Theory, An ethical issue and challenge. Journal of financial crime 12(1), 33- 34
  28. Vutumu, A., Aregbeyen, O., & Akinteye, A. S. (2024). Internal control and fraud prevention in the Nigerian public sector: A COSO perspective. Journal of Financial Risk Management, 13, 703- 729.
  29. Zeinaba, D. M., Adebisi, J. F., Sani, A. B., & Akoje, M. E. (2024). Effect of internal control systems on fraud management in Nigerian public sector. International Journal of Capacity Building in Education and Management, 6(6), 24- 40.
  30. World Bank. (2020). Public procurement and governance. World Bank Group.
  31. Wolfe, D. T., & Hermanson, D. R. (2004). The fraud diamond: Considering the four elements of fraud. The CPA Journal.
How to Cite

Moses, D. S., Kutus, M., & Gbegi, D. O. (2026). Internal Control System Effectiveness and Procurement Fraud Prevention in the Public Health Sector: Evidence from Nigeria. Nigerian Accounting Horizon Journal, 11(1), 140-155.

D. S. Moses, M. Kutus, and D. O. Gbegi, "Internal Control System Effectiveness and Procurement Fraud Prevention in the Public Health Sector: Evidence from Nigeria," Nigerian Accounting Horizon Journal, vol. 11, no. 1, pp. 140-155, July 2026.

Share this article:
Facebook X / Twitter LinkedIn
Download PDF View Full Text (PDF) Back to Articles