Author(s): Charles Odinakachi Njoku, Chijindu Promise Ubah, Benedict Anayochukwu Ozurumba, Kelechi Enyinna Ugwu, Chilaka Emmanuel Nwaimo, Anthony Izunobi
This research investigates the potential advantages of incorporating digital technologies into the financial management processes of the Nigerian public sector. The aim of this study is to determine how digital technologies can enhance financial management in the Nigeria public sector. The research used primary data. The research was carried out in seven Ministries, Departments, and Agencies (MDAs) in Nigeria, with a total of 286 participants. Data collection and analysis were conducted using a survey method that utilized a 5-Point Likert Scale. The findings offer valuable insights into key financial management processes that can benefit from the integration of digital technology, such as revenue collection and tracking. The research highlights the difficulties associated with manual data entry, lack of transparency, and accountability in current financial management processes. Approximately 63% of participants reported the adoption of digital technologies in financial management processes, with tax compliance and reporting being the most affected task. The potential benefits identified include improved financial transparency, enhanced decision-making, and increased efficiency and productivity. Challenges such as resistance to change and high implementation costs were also acknowledged. The research emphasizes the importance of establishing a comprehensive framework for the effective implementation of digital technologies in financial management. This framework should encompass clear policies, guidelines, and strategies. Participants recognized the significance of staff training and capacity-building programs, as well as data security and privacy protocols. The commitment and support of top management were identified as crucial factors in driving successful digital transformation. The significance of differences between groups and the relationships between variables were assessed using analysis of variance (ANOVA) and correlation coefficient. The results indicated statistically significant differences between groups and moderate correlations between certain variables. The research recommends conducting organization-specific needs assessments and tailoring technology solutions to address specific challenges.