Adoption of Cloud-Based Accounting Systems for Enhanced Financial Reporting in the Nigerian Public Sector

• Post by: birpo
• February 13, 2026
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Gozie-Onu, Eugenia Adanna Ph.D. ¹  &  Ani, Michael Uchenna Ph.D. ²

Abstract         

This study investigates the adoption of Cloud-Based Accounting Systems (CBAS) as a strategic tool for enhancing financial reporting in the Nigerian public sector. Persistent challenges such as delayed reporting, manual accounting processes, weak transparency, and limited decision-support capabilities have undermined accountability and public trust despite Nigeria’s adoption of the International Public Sector Accounting Standards (IPSAS). Using a mixed-methods approach, the study collected quantitative data through structured questionnaires administered to 200 respondents across selected federal Ministries, Departments, and Agencies (MDAs) in Abuja, and qualitative data from semi-structured interviews with 20 key informants, including senior accountants and policymakers. Quantitative data were analyzed using descriptive statistics and regression-based Structural Equation Modeling (SEM), while qualitative data were examined using thematic analysis. Findings reveal that the current state of financial reporting significantly influences public sector performance, particularly in terms of timeliness and decision usefulness. The study also shows that ICT infrastructure availability and data security concerns are the most significant factors influencing CBAS adoption. Furthermore, CBAS adoption has a strong positive effect on financial reporting quality, especially in improving transparency, accuracy, and reducing errors associated with manual processes. The proposed implementation framework emphasizing staff training, strong internal controls, clear guidelines, and system monitoring was found to be strongly associated with effective financial reporting outcomes. The study concludes that CBAS offers a viable pathway for modernizing public sector financial management in Nigeria. It recommends phased implementation of CBAS across MDAs, investment in ICT infrastructure and cybersecurity, continuous capacity building, and alignment of CBAS platforms with IPSAS requirements to strengthen accountability, efficiency, and trust in government financial information

Keywords: Cloud-Based Accounting Systems, Financial Reporting Quality, Nigerian Public Sector, IPSAS, Transparency, ICT Infrastructure, Governance.