External users of public sector accounting information

We explained the internal users of public sector accounting information. This time, we are taking a step further to explain the external users of accounting. Unlike in the private sector, these users do not have a force that can impact the sources of funds to a country. This is because the executives control the economy and a country is seen as a sovereign state.

External users of PSA explained

External users of public sector accounting are those individuals and institutions that have no power to influence the decisions of a country's financial system directly. However, they can do so indirectly if they provide loans and other funding to the country. For example, the World Bank has some influence on the Nigerian economy based on loan agreements. These agreements may prohibit Nigeria from carrying out some activities.

Types of External users of public sector accounting information

National Assembly (NASS)

The National Assembly of a country, which is the legislative arm of government, is an external user of government accounting information. This also includes the various state houses of assemblies. A country’s annual budget usually passes through them. And they have the right to investigate issues regarding the use of public funds.

Non-reporting state government

This is the government other than the reporting one. For example, if the Rivers State reads their budget, the Lagos state can be an external user of such information and vice versa.

Foreign countries

Countries other than Nigerians can be external users of public sector accounting information. Especially if Nigeria owes the foreign country money. China is a good example of a country we can refer to because Nigeria is a debtor to China.

International financial institutions

Foreign institutions such as the World Bank are important users of government accounting in Nigeria. They provide funds to the country either as loans or grants. Therefore, they want to know how the funds are used. As well as, if they should give another loan to Nigeria.

Local and foreign creditors

Other creditors such as banks in Nigeria and credit associations are interested in the accounting information of Nigeria.

Researchers

Individuals studying at universities and other research institutes like Finch rating, e.t.c. may require accounting information from Nigeria.

Opposition political parties

Opposition political parties need to make a point about why the incumbent government is not doing well. They can successfully criticize the present government if they can lay their hands on valuable accounting information.

The Media

The media is often seen as the fourth tier of government. Their influence can be felt as they report what's happening within a country. They may seek information to provide the same to their readers.