A THEORY OF SOCIAL SECURITY ACCOUNTING FOR DEVELOPMENT CONTEXTS

Abstract

This study developed the Social Security Accounting Theory (SSAT) as an integrative theoretical framework for explaining the relationship between non-contributory social security interventions and financial inclusion outcomes among informal sector workers. Existing accounting and social protection theories have largely emphasized financial reporting, fiscal accountability and welfare administration without adequately addressing how social security investments influence socio-economic inclusion and financial participation. Consequently, this study sought to bridge the gap by conceptualizing social security expenditure as a measurable socio-economic investment capable of generating developmental and financial inclusion outcomes. The study adopted a mixed methods approach involving quantitative and qualitative techniques through structured questionnaires and expert interviews respectively. Thematic analysis using qualitative data was also done. The study examined the influence of some selected non-contributory social security which included health care support, educational support, conditional transfers, N-power and Government Enterprise and Empowerment Programme (GEEP) on dimensions of financial inclusion such as access, usage, affordability and quality of financial services. The findings revealed that non-contributory social security interventions significantly influence financial inclusion among informal workers by improving access to financial services, enhancing digital financial participation, encouraging formal savings behaviour and reducing economic vulnerability. The study also found out that transparency, accountability, effective social security reporting systems and digital infrastructure are critical determinants of successful social protection outcomes. Therefore, financial inclusion was found to be a mediating mechanism through which social security interventions could improve socio-economic welfare and economic resilience. Based on these findings, the study developed the Social Security Accounting Theory (SSAT) which posits that social security expenditure should not be viewed merely as welfare consumption but as a strategic developmental investment requiring transparent accounting, measurable social impact reporting and inclusive financial integration. The theory further establishes that effective social security systems can enhance financial inclusion, promote economic participation and strengthen sustainable development outcomes among vulnerable populations. The study contributes to knowledge by extending accounting theory into the domain of social protection and financial inclusion thus introducing a socio-economic accountability perspective to public sector accounting and proposing measurable constructs for evaluating social security effectiveness. The study recommends the development of standardized social security accounting frameworks, expansion of digital social protection systems, strengthening of transparency and accountability mechanisms and the integration of financial inclusion strategies into national social intervention programmes.