EFFECT OF CLOUD-BASED ACCOUNTING ON PERFORMANCE OF MICROFINANCE BANKS IN MAKURDI METROPOLIS OF BENUE STATE

Abstract

This study examined the effect of cloud-based accounting on the performance of Microfinance Banks in Makurdi Metropolis, Benue State, Nigeria. Motivated by chronic and documentable performance failures, escalating regulatory sanctions, and pervasive accounting technology deficits in Makurdi Microfinance Banks, the study operationalised cloud-based accounting through three dimensions: automated financial reporting, real-time data access, and multi-user collaboration functionality. Institutional performance was measured using financial performance, operational efficiency, and portfolio quality as proxies. Drawing on the Technology Acceptance Model and the DeLone and McLean Information Systems Success Model, the study adopted a survey research design. Primary data were gathered from 98 staff of ten purposively selected Microfinance Banks in Makurdi Metropolis through structured questionnaires. Data were analysed using descriptive statistics and multiple linear regression. Findings revealed that automated financial reporting has a significant positive effect on financial performance (β = 0.487, p < 0.05); real-time data access exerts a significant positive effect on operational efficiency (β = 0.413, p < 0.05); and multi-user collaboration functionality significantly improves portfolio quality (β = 0.362, p < 0.05). The study concludes that cloud-based accounting is a potent lever for reversing the documented performance deterioration of Microfinance Banks in Makurdi Metropolis and recommends that the Central Bank of Nigeria incorporate minimum cloud accounting adoption standards into the Microfinance Banks supervisory framework for Benue State.