Impact of Financial Technology (FinTech) on Accounting Efficiency and Supply Chain Performance in Nigeria’s Logistics Sector
Abstract
This research examines how Financial Technology (FinTech) and accounting efficiency affect the performance of the supply chain in the Nigerian logistics industry. Using annual time-series data between 2000 and 2024, the study follows an Autoregressive Distributed Lag (ARDL) modeling strategy to estimate both short-run dynamics and long-run relationships. The value of electronic financial transactions is used as a proxy of FinTech adoption, financial reporting quality indices as a proxy of accounting efficiency, and composite logistics indicators as a proxy of supply chain performance. Descriptive analysis shows that there is a lot of variation in FinTech uptake but not much variation in accounting practices. Cointegration of the variables is supported by the ARDL bounds test. The long-run estimates show that the efficiency of FinTech and accounting have a statistically significant positive impact on logistics performance, with coefficients of 0.42 and 0.35, respectively. In the short-run, the efficiency gains of accounting have an immediate effect, and the benefits of FinTech are felt in a more long-term way. The error correction term implies a high rate of convergence to equilibrium (adjustment speed of 45%). Model robustness is validated by diagnostic tests. The results suggest that FinTech usage and effective financial management are mutually supportive factors of supply chain efficiency in Nigeria. Based on this, companies and policy makers ought to intensify the use of digital financial instruments and enhance accounting functions to promote robust and competitive logistics systems.
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Akanbi, T. A., Oladejo, M. O., & Oyeleye, O. A. (2022). Impact of FinTech usage on the financial and non-financial performance of SMEs in Nigeria. International Journal of Academic Research in Accounting, Finance and Management Sciences, 12(2), 306–316.
Akinadewo, I. S., Dagunduro, M., Adebiyi, I. M., & Akinadewo, J. O. (2023). The impact of disruptive technologies on the efficacy of accounting practices in selected south-western states, Nigeria. International Business & Economics Studies, 5(3), 1–14.
Akinbamini, E., Vargas, A., Traill, A., Boza, A., & Cuenca, L. (2023). Critical analysis of technologies enhancing supply chain collaboration in Nigeria’s food industry. Inventions, 8(1), 8-25. (MDPI)
Arnaut, D., & Bećirović, D. (2023). FinTech innovations as disruptor of the traditional financial industry. In Digital Transformation of the Financial Industry: Approaches and Applications (pp. 233–254). Cham: Springer.
Asamoah, J. Y., & Owusu-Agyei, L. (2020). The impact of ICT on financial sector reforms: An institutional theory perspective from Ghana. International Journal of Finance & Banking Studies, 9(2), 82–100.
Babatunde, A. A. (2024). Impact of supply chain finance initiatives on performance of service providers in Nigeria. Journal of Management and Science, 14(3), 81–90.
Burdon, W. M., & Sorour, M. K. (2020). Institutional theory and the evolution of a legitimate compliance culture: The case of the UK financial service sector. Journal of Business Ethics, 162(1), 47–80. Doi: https://10.1007/s10551-018-3981-4
Chukwu, G. J., & Eze, O. R. (2018). Impact of information communication technology on accounting practice in Nigeria. Journal of Accounting and Financial Management, 4(5), 45–54.
Elsaid, H. M. (2023). A review of literature on the impact of FinTech firms on the banking industry. Qualitative Research in Financial Markets, 15(5), 693–711.
Eze, S. U., Okere, W., Okoye, N. J., & Chika, A. R. (2024). Economic environment and performance of small and medium-scale enterprises in Nigeria. Journal of Economics and Sustainable Development, 15(1), 45–57.
Gelsomino, L. M., Mangiaracina, R., Perego, A., & Tumino, A. (2016). Supply chain finance: A literature review. International Journal of Physical Distribution & Logistics Management, 46(4), 348–366.
Giglio, F. (2021). FinTech: A literature review. European Research Studies Journal, 24(2B), 600–627.
Godgift-David, A., Onyeiwu, C., & Owopetu, O. A. (2018). The impact of financial technology in the operations (payments/collections) of SMEs in Nigeria. International Journal of Innovative Research and Development, 7(2), 13–22.
Guan, Y., Sun, N., Wu, S. J., & Sun, Y. (2025). Supply chain finance, FinTech development, and financing efficiency of SMEs in China. Administrative Sciences, 15(3), Article 86.
Harsono, I., & Suprapti, I. A. P. (2024). The role of FinTech in transforming traditional financial services. Accounting Studies and Tax Journal (COUNT), 1(1), 81–91.
Karakus, R., & Zor, S. D. (2017). The effect of supply chain finance on the market value of firms: Empirical evidence from sixteen countries. Journal of Economics and Financial Analysis, 1(2), 1–15.
Koffi, H. (2016). The FinTech revolution: An opportunity for the West African financial sector. Open Journal of Applied Sciences, 6(11), 771–782.
Kola-Oyeneyin, T., Kuyoro, M., & Olanrewaju, T. (2021). Harnessing Nigeria’s FinTech potential. McKinsey & Company Report, February 2021.
Kyari, A. K., & Akinwale, Y. O. (2020). An assessment of the level of adoption of financial technology by Nigerian banks. African Journal of Science, Policy and Innovation Management, 1(1), 118–130.
Lam, J. S. L., Ye, Z., & Lau, Y. Y. (2019). Impact of supply chain finance initiatives on firm risk. Maritime Economics & Logistics, 21(4), 476–494.
Lee, I., & Shin, Y. J. (2018). FinTech: Ecosystem, business models, investment decisions, and challenges. Business Horizons, 61(1), 35–46.
Liu, F., Xie, L., & Liu, W. (2025). Impact of FinTech on supply chain resilience. International Review of Financial Analysis, 103, 104241.
Madawaki, A. (2012). Adoption of International Financial Reporting Standards in developing countries: The case of Nigeria. International Journal of Business and Management, 7(3), 152–161.
Manzoor, F., Wei, L., & Sahito, N. (2021). Role of SMEs in rural development: Access to finance as a mediator. PLOS ONE, 16(3), e0247598.
Martinčević, I., Črnjević, S., & Klopotan, I. (2020). The FinTech revolution in the financial industry. ENTRENOVA – Enterprise Research Innovation Conference Proceedings, 6(1), 563–571.
Nkoro, E., & Uko, A. K. (2016). Autoregressive Distributed Lag (ARDL) cointegration technique: Application and interpretation. Journal of Statistical and Econometric Methods, 5(4), 63–91.
Ojo, O., & Nwaokike, U. (2018). Disruptive technology and the FinTech industry in Nigeria: Imperatives for legal and policy responses. Gravitas Review of Business and Property Law, 9(3), 1–18.
Okafor, A. O., & Egiyi, E. O. (2021). Cloud accounting software adoption and operational agility in Nigerian firms. Research Journal of Finance and Accounting, 12(5), 134–142.
Okoye, N. J., Okere, W., Ogechukwu-Onyema, I., & Chimdinma, O. (2024). Financial technology and the performance of firms in Nigeria. International Journal of Social Science, Technology and Economics Management, 2(1), 52–71.
Onaseso, O. O. (2021). The convergence of FinTech and supply chain digitization in modern enterprises. World Journal of Advanced Research and Reviews, 10(1), 187–195.
Otonne, A., Melikam, W., & Ige, O. T. (2023). Adoption of financial technology and performance of deposit money banks in Nigeria. Futurity Economics & Law, 3(2), 95–114.
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. doi: https://10.1002/jae.616
Siano, A., Raimi, L., Palazzo, M., & Panait, M. C. (2020). Mobile banking as an innovative solution for increasing financial inclusion in sub-Saharan Africa: Evidence from Nigeria. Sustainability, 12(23), 10130.
Suryono, R. R., Budi, I., & Purwandari, B. (2020). Challenges and trends of financial technology (FinTech): A systematic literature review. Information, 11(12), 590.
Traill, A., Akinbamini, E., Vargas, A., Boza, A., & Cuenca, L. (2023). Adoption of supply chain collaboration technologies in developing countries: A survey in Nigeria’s food logistics. Logistics, 7(2), 22.
Wetzel, P., & Hofmann, E. (2019). Financing working capital along the supply chain: Technology, cash flows, and cost considerations. Journal of Applied Accounting Research, 20(1), 84–99.
World Bank (2023). Connecting to Compete 2023: Trade Logistics in an Uncertain Global Economy. Washington, DC: World Bank. Retrieved from: https://lpi.worldbank.org/sites/default/files/2023-04/LPI_2023_report_with_layout.pdf#:~:text=Kazakhstan%202,3
Akanbi, T. A., Oladejo, M. O., & Oyeleye, O. A. (2022). Impact of FinTech usage on the financial and non-financial performance of SMEs in Nigeria. International Journal of Academic Research in Accounting, Finance and Management Sciences, 12(2), 306–316.
Akinadewo, I. S., Dagunduro, M., Adebiyi, I. M., & Akinadewo, J. O. (2023). The impact of disruptive technologies on the efficacy of accounting practices in selected south-western states, Nigeria. International Business & Economics Studies, 5(3), 1–14.
Akinbamini, E., Vargas, A., Traill, A., Boza, A., & Cuenca, L. (2023). Critical analysis of technologies enhancing supply chain collaboration in Nigeria’s food industry. Inventions, 8(1), 8-25. (MDPI)
Arnaut, D., & Bećirović, D. (2023). FinTech innovations as disruptor of the traditional financial industry. In Digital Transformation of the Financial Industry: Approaches and Applications (pp. 233–254). Cham: Springer.
Asamoah, J. Y., & Owusu-Agyei, L. (2020). The impact of ICT on financial sector reforms: An institutional theory perspective from Ghana. International Journal of Finance & Banking Studies, 9(2), 82–100.
Babatunde, A. A. (2024). Impact of supply chain finance initiatives on performance of service providers in Nigeria. Journal of Management and Science, 14(3), 81–90.
Burdon, W. M., & Sorour, M. K. (2020). Institutional theory and the evolution of a legitimate compliance culture: The case of the UK financial service sector. Journal of Business Ethics, 162(1), 47–80. Doi: https://10.1007/s10551-018-3981-4
Chukwu, G. J., & Eze, O. R. (2018). Impact of information communication technology on accounting practice in Nigeria. Journal of Accounting and Financial Management, 4(5), 45–54.
Elsaid, H. M. (2023). A review of literature on the impact of FinTech firms on the banking industry. Qualitative Research in Financial Markets, 15(5), 693–711.
Eze, S. U., Okere, W., Okoye, N. J., & Chika, A. R. (2024). Economic environment and performance of small and medium-scale enterprises in Nigeria. Journal of Economics and Sustainable Development, 15(1), 45–57.
Gelsomino, L. M., Mangiaracina, R., Perego, A., & Tumino, A. (2016). Supply chain finance: A literature review. International Journal of Physical Distribution & Logistics Management, 46(4), 348–366.
Giglio, F. (2021). FinTech: A literature review. European Research Studies Journal, 24(2B), 600–627.
Godgift-David, A., Onyeiwu, C., & Owopetu, O. A. (2018). The impact of financial technology in the operations (payments/collections) of SMEs in Nigeria. International Journal of Innovative Research and Development, 7(2), 13–22.
Guan, Y., Sun, N., Wu, S. J., & Sun, Y. (2025). Supply chain finance, FinTech development, and financing efficiency of SMEs in China. Administrative Sciences, 15(3), Article 86.
Harsono, I., & Suprapti, I. A. P. (2024). The role of FinTech in transforming traditional financial services. Accounting Studies and Tax Journal (COUNT), 1(1), 81–91.
Karakus, R., & Zor, S. D. (2017). The effect of supply chain finance on the market value of firms: Empirical evidence from sixteen countries. Journal of Economics and Financial Analysis, 1(2), 1–15.
Koffi, H. (2016). The FinTech revolution: An opportunity for the West African financial sector. Open Journal of Applied Sciences, 6(11), 771–782.
Kola-Oyeneyin, T., Kuyoro, M., & Olanrewaju, T. (2021). Harnessing Nigeria’s FinTech potential. McKinsey & Company Report, February 2021.
Kyari, A. K., & Akinwale, Y. O. (2020). An assessment of the level of adoption of financial technology by Nigerian banks. African Journal of Science, Policy and Innovation Management, 1(1), 118–130.
Lam, J. S. L., Ye, Z., & Lau, Y. Y. (2019). Impact of supply chain finance initiatives on firm risk. Maritime Economics & Logistics, 21(4), 476–494.
Lee, I., & Shin, Y. J. (2018). FinTech: Ecosystem, business models, investment decisions, and challenges. Business Horizons, 61(1), 35–46.
Liu, F., Xie, L., & Liu, W. (2025). Impact of FinTech on supply chain resilience. International Review of Financial Analysis, 103, 104241.
Madawaki, A. (2012). Adoption of International Financial Reporting Standards in developing countries: The case of Nigeria. International Journal of Business and Management, 7(3), 152–161.
Manzoor, F., Wei, L., & Sahito, N. (2021). Role of SMEs in rural development: Access to finance as a mediator. PLOS ONE, 16(3), e0247598.
Martinčević, I., Črnjević, S., & Klopotan, I. (2020). The FinTech revolution in the financial industry. ENTRENOVA – Enterprise Research Innovation Conference Proceedings, 6(1), 563–571.
Nkoro, E., & Uko, A. K. (2016). Autoregressive Distributed Lag (ARDL) cointegration technique: Application and interpretation. Journal of Statistical and Econometric Methods, 5(4), 63–91.
Ojo, O., & Nwaokike, U. (2018). Disruptive technology and the FinTech industry in Nigeria: Imperatives for legal and policy responses. Gravitas Review of Business and Property Law, 9(3), 1–18.
Okafor, A. O., & Egiyi, E. O. (2021). Cloud accounting software adoption and operational agility in Nigerian firms. Research Journal of Finance and Accounting, 12(5), 134–142.
Okoye, N. J., Okere, W., Ogechukwu-Onyema, I., & Chimdinma, O. (2024). Financial technology and the performance of firms in Nigeria. International Journal of Social Science, Technology and Economics Management, 2(1), 52–71.
Onaseso, O. O. (2021). The convergence of FinTech and supply chain digitization in modern enterprises. World Journal of Advanced Research and Reviews, 10(1), 187–195.
Otonne, A., Melikam, W., & Ige, O. T. (2023). Adoption of financial technology and performance of deposit money banks in Nigeria. Futurity Economics & Law, 3(2), 95–114.
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. doi: https://10.1002/jae.616
Siano, A., Raimi, L., Palazzo, M., & Panait, M. C. (2020). Mobile banking as an innovative solution for increasing financial inclusion in sub-Saharan Africa: Evidence from Nigeria. Sustainability, 12(23), 10130.
Suryono, R. R., Budi, I., & Purwandari, B. (2020). Challenges and trends of financial technology (FinTech): A systematic literature review. Information, 11(12), 590.
Traill, A., Akinbamini, E., Vargas, A., Boza, A., & Cuenca, L. (2023). Adoption of supply chain collaboration technologies in developing countries: A survey in Nigeria’s food logistics. Logistics, 7(2), 22.
Wetzel, P., & Hofmann, E. (2019). Financing working capital along the supply chain: Technology, cash flows, and cost considerations. Journal of Applied Accounting Research, 20(1), 84–99.
World Bank (2023). Connecting to Compete 2023: Trade Logistics in an Uncertain Global Economy. Washington, DC: World Bank. Retrieved from: https://lpi.worldbank.org/sites/default/files/2023-04/LPI_2023_report_with_layout.pdf#:~:text=Kazakhstan%202,3
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