Chapter One — 1.1 Background to the Study

Related Party Transactions has increasingly attracted the attention of researchers, regulators, and practitioners concerned with accountability in public institutions. This growing interest reflects the recognition that related party transactions does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Selected Federal Government Parastatals in Nigeria.

Selected Federal Government Parastatals in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While related party transactions is widely discussed in policy and industry circles, empirical evidence on its actual effect on accountability in public institutions within Selected Federal Government Parastatals in Nigeria remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to related party transactions are helping or hindering accountability in public institutions — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Related Party Transactions on accountability in public institutions in Selected Federal Government Parastatals in Nigeria.
2. To assess the extent to which related party transactions influences accountability in public institutions within the study area.
3. To identify the challenges associated with related party transactions in relation to accountability in public institutions.
4. To recommend strategies for optimizing related party transactions in order to improve accountability in public institutions.

1.4 Research Questions

1. What is the effect of related party transactions on accountability in public institutions in Selected Federal Government Parastatals in Nigeria?
2. To what extent does related party transactions influence accountability in public institutions within the study area?
3. What challenges are associated with related party transactions in relation to accountability in public institutions?
4. What strategies can be adopted to optimize related party transactions in order to improve accountability in public institutions?

1.5 Significance of the Study

Beyond its academic contribution to the field of accounting, this study has practical value for management teams within Selected Federal Government Parastatals in Nigeria seeking to understand how related party transactions translates into measurable outcomes around accountability in public institutions. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Related Party Transactions and its relationship with accountability in public institutions within the context of Selected Federal Government Parastatals in Nigeria. It reflects a PhD-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.