EFFECT OF DIGITALISED ACCOUNTING PRACTICES ON FINANCIAL ACCOUNTABILITY OF MINISTRIES, DEPARTMENTS, AND AGENCIES (MDAs) IN NIGERIA

Abstract

In the face of persistent financial mismanagement and inefficiencies, digitalized accounting systems have emerged as vital tools for enhancing transparency, efficiency, and accountability in public financial management. In response, government agencies in Nigeria are increasingly adopting digital accounting solutions to improve public financial management, and accountability. However, the effectiveness of these practices remains crucial. This study therefore, examines the effect of digitalised accounting practice on the financial accountability of Ministries, Departments, and Agencies (MDAs) in Nigeria. This research specifically focuses on digitalized tax administration, treasury management, financial management, and personnel payroll management. Data were gathered within the office of the auditor general of the federation in Nigeria using questionnaire and analyzed using descriptive statistics and regression techniques. The findings reveal that while digitalized treasury management (P=0.000), financial management (P=0.000), and personnel payroll management practices (P=0.003) positively and significantly influence financial accountability. Also, digitalized tax administration shows a negative relationship with accountability (P=0.000), indicating challenges in implementation. The study concluded that digitalized accounting practices boost financial accountability in Nigerian MDAs, with digitalized treasury, financial, and payroll management having positive impacts. The study recommends among others, the need for more robust audit trails in digital tax systems, continued expansion of treasury management practices, and comprehensive implementation of digital financial management systems to enhance procurement and asset management processes.