Cloud-Based Accounting and Financial Performance of Listed Deposit Money Banks in Nigeria

Abstract

With the financial environment changing so quickly these days, the Nigerian banking industry is under increasing pressure to modernize its operations, improve service quality, and maximize financial performance. One innovation that is becoming more popular is cloud accounting, which is a digital accounting paradigm that provides cost-effectiveness, scalability, and real-time data access. This study, therefore, examined cloud-based accounting and the financial performance of listed deposit money banks in Nigeria. The study employed ex-post facto research design. Ten of the 14 deposit money banks that were listed in Nigeria as of the end of 2024 were used as the sample size in this study. During the data extraction process, the study used secondary sources, specifically from the annual reports and accounts of the selected banks from 2015–2024. The data gathered was analyzed with the use of descriptive statistics, correlation and regression analysis. Software cost (β=7.966379, p-value = 0.0002) and training cost (β=12.50473, p-value = 0.0000) appeared to have a positive and significant impact on the return on assets of Nigerian listed deposit money banks, according to the regression results. As a result, the study came to the conclusion that software and training expenses may be used by current and prospective investors to predict the return on assets of the chosen deposit money banks in Nigeria. To facilitate the broad use of cloud-based accounting in Nigerian deposit money banks, the research suggested that the government, trade groups, and financial institutions emphasize training and skill development in technology infrastructure.