IMPACT OF DIGITAL TOOLS ON TRANSPARENCY AND EFFICIENCY IN PUBLIC SECTOR ACCOUNTING PRACTICES IN NIGERIA

Abstract

The global shift towards digitalization presents a transformative opportunity for public financial management. In Nigeria, decades of documented inefficiency, corruption, and lack of transparency in the public sector have spurred calls for the integration of digital tools into government accounting. However, the extent to which these tools have been adopted and their actual impact on accountability mechanisms remains empirically under-explored. This study assesses the impact of specific digital tools (Integrated Financial Management Information Systems (IFMIS), E-Payment Platforms, and E-Accrual Accounting Systems) on the transparency and operational efficiency of public sector accounting in Nigeria. The study employed a cross-sectional survey design, collecting primary data through structured questionnaires from 180 accounting and finance officers across 60 Federal and State Ministries, Departments, and Agencies (MDAs) in Nigeria. Data were analyzed using descriptive statistics and multiple regression analysis. Findings indicate a moderate level of digital tool adoption, with E-Payment platforms being the most prevalent. Regression analysis revealed that IFMIS and E-Accrual Accounting Systems have a significant positive relationship with both transparency and efficiency. E-Payment platforms showed a significant positive relationship with efficiency but an insignificant relationship with transparency. The study concludes that the adoption of core digital accounting tools, particularly IFMIS and systems that enable better accrual-based reporting, is a critical driver of both transparency and efficiency in the Nigerian public sector. While E-Payments enhance transaction speed, they do not automatically guarantee transparency without complementary systems. The study advocates for a holistic digital transformation strategy anchored on integrated systems.