IMPACT OF DIGITAL INNOVATIONS ON ACCOUNTING PRACTICES IN SMART CITIES INITIATIVES: EVIDENCE FROM NIGERIA

Abstract

The landscape of accounting practices has transformed with the adoption of digital technologies, particularly within the context of smart city development. This study was motivated by the growing recognition that Nigeria’s transition toward smart cities requires transparent, data-driven, and technology- enabled accounting systems to achieve sustainable goals. Despite the global awareness about the digital transformation and adoption, the integration of digital innovations into Nigeria’s accounting system remains limited, which constraints effective financial reporting and sustainable urban management. This study examined the impact of digital innovations on accounting practices in Nigeria’s smart city initiatives. A mixed method approach was employed combining quantitative data and qualitative data. Primary data were collected through structured questionnaires administered to accountants, auditors and officials in selected Nigeria cities; Lagos, Abuja, Port Harcourt, Kano, Ibadan and Enugu. Data were analyzed using descriptive statistics and correlation analysis for the quantitative component, and thematic analysis for the qualitative component. Findings revealed a moderate but low institutional adoption of digital innovations such as artificial intelligence (AI), blockchain and big data analysis in accounting practices. This study thus concludes that digital innovations hold significant potential to strengthen accounting practices, improve sustainability reporting and promote good governance in Nigeria’s emerging smart cities. It is recommended that ministries, departments and agencies (MDAs) involved in smart city projects should prioritize digital readiness by investing in ICT infrastructure and developing policies that support digital transformation in accounting practices.