Public Sector Governance: Ministries, Departments, Agencies and State-Owned Entities
What the exam tests
This domain tests accountability in government. It covers the principal–agent chain between citizens, ministers, boards, accounting officers and SOE management, and the control statutes that constrain spending.
Core rules
- Public entities are created by statute or executive instrument. Their enabling law defines objectives, board appointment, reporting and oversight.
- The Public Procurement Act 2007 requires competitive processes and Bureau of Public Procurement (BPP) due process for covered contracts.
- The Fiscal Responsibility Act 2007 imposes fiscal discipline, medium-term expenditure frameworks and reporting.
- Accounting officers are accountable for funds and compliance. The Auditor-General for the Federation, Accountant-General, ICPC, EFCC and National Assembly oversight provide external checks.
- SOEs often have multiple principals: supervising ministry, Ministry of Finance Incorporated as shareholder, regulator and legislature.
Worked example
A federal agency wants to award a ₦300 million contract without advertising, claiming urgency. Reasoning: urgency may justify a restricted method only within the Procurement Act’s stated exceptions; the accounting officer must document the basis and obtain BPP approvals where required. Proceeding without due process exposes the officer to audit queries and sanctions. Commercial urgency does not erase statutory controls.
Traps
Copying private-sector shareholder logic into public entities; confusing ministerial oversight with day-to-day management; ignoring the enabling statute; treating BPP approval as a formality; and assuming SOE boards can override the accounting officer’s statutory duties.