This study examines the implications of the public sector reforms on the accounting and budgeting systems in the Nigerian public sector. The provisions of the Fiscal Responsibility Act 2007, being a major framework for carrying out the public sector reforms in Nigeria, are examined in order to determine their compatibility, or otherwise, with the public sector budgeting and accounting systems. It goes on to explore in what ways, if any, the provisions therein would require reform in the public sector financial reporting systems to ensure the achievement of the economic reforms which are to enhance transparency, efficiency, accountability and economic development in Nigeria. The descriptive and ex-post facto research designs were employed. The study established that there is need for a reform of the public sector financial reporting systems if the objectives of the Nigeria Public sector reforms as provided for in the Fiscal Responsibility Act are to be achieved.
Keywords: Activity Budgeting, Cost Accounting System, Fiscal Responsibility Act
