ARTIFICIAL INTELLIGENCE AND ACCOUNTING PRACTICES OF MICROFINANCE BANKS IN NIGERIA

This study examines the effect of artificial intelligence (AI… in Microfinance Banks in
Nigeria, with particular emphasis on financial reporting, auditing efficiency, and fraud detection. Despite the
increasing global adoption of AI in financial systems, many Microfinance Banks continue to rely on traditional
accounting methods characterized by inefficiencies, errors, and weak fraud detection mechanisms. The study
adopts a quantitative research design, using primary data collected from 150 accounting and finance professionals
through structured questionnaires. Data were analyzed using descriptive statistics, correlation analysis, and
multiple regression techniques. The findings reveal a strong positive relationship between AI and accounting
practices (r = 0.72). Regression results further indicate that AI has a significant positive effect on accounting
practices (β = 0.68, p < .01). In addition, infrastructure (β = 0.31, p < .05) and skill level (β = 0.27, p < .05) were
found to significantly influence the effectiveness of AI. The study concludes that AI enhances the accuracy,
efficiency, and transparency of accounting practices in Microfinance Banks. It is recommended that Microfinance
Banks invest in technological infrastructure and staff training to fully realize the benefits of AI adoption.