CHALLENGES OF IMPLEMENTING INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS (IPSAS) IN DEVELOPING COUNTRIES: THE NIGERIAN CONTEXT

Abstract

The adoption of International Public Sector Accounting Standards (IPSAS) is widely regarded as a major reform strategy for enhancing transparency, accountability, and comparability in public sector financial reporting. Nigeria formally adopted IPSAS with the expectation that global accounting standards would strengthen its public financial management systems. However, over a decade after adoption, effective implementation of IPSAS remains limited. This paper critically reviews the major challenges inhibiting IPSAS implementation in Nigeria, including institutional weaknesses, human capital deficits, technological limitations, political instability, cultural resistance, and weak regulatory enforcement. Drawing on existing literature, the study highlights the structural, administrative, and socio‑political constraints that undermine IPSAS adoption and offers policy recommendations to strengthen implementation. It concludes that while IPSAS holds significant promise for improving financial reporting in Nigeria’s public sector, addressing systemic challenges is vital to realize its full benefits.