Impact of Forensic Accounting on Fraud Prevention in Federal Ministries, Departments and Agencies, In Nigeria

This study examined the impact of forensic accounting on fraud prevention in Federal Ministries, Departments, and Agencies in Nigeria. It was necessitated due to the persistent and alarming rate of financial fraud such as procurement fraud, ghost workers, and embezzlement in Nigerian MDAs. The study was conducted to ascertain the extent to which forensic accounting mechanisms has enhanced fraud detection and deterrence. The study adopted the Fraud Diamond Theory as a theoretical framework. Survey and documentary research designs were adopted. The target population comprised 850 senior finance officers, internal auditors, and forensic investigation staff in selected federal MDAs in Abuja. The total population of the study is 850. A sample size of 265 was determined using the Krejcie and Morgan formula. Primary data were sourced from structured questionnaire responses while secondary data were sourced from EFCC, NEITI, and Office of the Auditor-General reports spanning 2011 through 2025. The primary method of data collection used the instrument of a structured Likert-scale questionnaire, while the secondary method used documentary analysis to obtain quantitative panel data. Descriptive statistics were used to present the quantitative data, while multiple linear regression and autoregressive distributed lag (ARDL) statistical techniques were used to analyze and test the hypotheses at a p<0.05 significance level. Findings from hypothesis one revealed that litigation support services have significantly enhanced fraud detection and prevention in Federal MDAs, with a p-value of 0.000 (p < 0.05). Findings from hypothesis two revealed that fraud risk assessment has significantly enhanced fraud detection and prevention in Federal MDAs, with a p-value of 0.000 (p < 0.05). The study concluded that forensic accounting, through its mechanisms of litigation support and fraud risk assessment, has a significant positive impact on fraud prevention in Nigerian Federal MDAs. The study recommended, among other things, that the Federal Government should institutionalize forensic accounting units across all MDAs and mandate annual fraud risk assessments.