Financial Technology and Financial Reporting in the Public Sector: The Case of Akwa Ibom State, Nigeria

Abstract

Financial reporting in Nigeria’s public sector is often constrained by manual processes, bureaucratic inefficiencies, and error-prone procedures, leading to challenges in timely and accurate compliance with International Public Sector Accounting Standards (IPSAS). This study examined the relationship between financial technology and financial reporting compliance in the Akwa Ibom State public sector. A survey research design was adopted, with a population comprising all 58 staff members of the Offices of the Accountant-General and Auditor-General in Akwa Ibom State, Nigeria. Census sampling technique was employed, and data were collected using structured questionnaires on a 5-point Likert scale. Ordinary Least Squares regression was used for data analysis with SPSS 21. The instrument’s reliability was confirmed through Cronbach’s Alpha (0.771), while validity was ensured through supervisor evaluation and expert input. Findings revealed that the number of trained users, expenditure on financial software, and staff training hours on FinTech had significant positive relationships with financial reporting compliance, while revenue/expenditure automation platforms and telecoms/service provider partnerships showed no significant effect. The study concluded that financial technology significantly enhances compliance in public sector reporting. It recommended continuous staff training, investment in financial software, and improved integration of automation platforms to strengthen compliance and transparency in financial management.