Blockchain Based Accounting and Payroll Fraud in Federal Public Enterprises in Rivers State, Nigeria

This study investigates the relationship between blockchain-based accounting and payroll fraud in federal public enterprises in Rivers State, Nigeria, with particular emphasis on the persistent problem of ghost workers. Despite reforms such as the Integrated Payroll and Personnel Information System (IPPIS), payroll manipulation continues to undermine fiscal accountability, resource allocation, and public trust. Drawing on blockchain dimensions, transparency and immutability, security and data integrity, real-time reporting and auditability, cost efficiency and process optimization, and regulatory compliance and standardization, the research employed a survey design complemented by inferential statistical analysis to assess their effectiveness in mitigating payroll fraud. The results revealed that blockchain-based accounting features are significantly and negatively associated with payroll fraud, with security, immutability, and auditability emerging as the strongest predictors of fraud reduction. Diagnostic tests confirmed the robustness of the model, while the findings underscore blockchain’s potential to provide tamper-proof payroll records, strengthen internal controls, and enhance compliance with financial regulations. The study concludes that blockchain offers a transformative and sustainable solution to payroll fraud in Nigeria’s federal public enterprises and recommends its phased adoption, supported by enabling policies, digital infrastructure investment, and capacity-building for payroll and ICT personnel to ensure effective implementation and long-term accountability.