Effect of Organizational Stimulus and Capacity on Financial Fraud in Nigeria’s Federal Ministry of Finance, Budget & National Planning and Economic Development
This study examines the effect of organizational stimulus and capacity on financial fraud within Nigeria’s Federal Ministry of Finance, Budget, and National Planning. Using the Fraud Hexagon Theory as a framework, the research investigates how stimulus (financial pressure, performance targets) and capacity (technical knowledge, system access) contribute to fraudulent activities. A quantitative approach employing survey research design was adopted, with data collected from 80 stakeholders across eight professional groups. The study utilized regression analysis via SPSS to determine the relationships between financial fraud, stimulus, and capacity. Findings reveal that stimulus has a strong positive effect on financial fraud, while capacity exhibits an insignificant impact. The study concludes that financial pressure and performance demands are primary drivers of fraudulent activities, emphasizing the need for enhanced governance structures and fraud detection mechanisms. Recommendations include strengthening internal controls, implementing forensic auditing, and enforcing stricter legal accountability measures. Future research should explore external moderating factors such as regulatory policies and technological advancements to provide a broader perspective on financial fraud dynamics.
Keywords: Financial Fraud, Organizational Stimulus, Capacity, Fraud Hexagon Theory, Public Sector
