Digitalization and Financial Reporting Quality of Quoted Manufacturing Companies in Nigeria

Abstract: This study examines the effect of digitalization on the financial reporting quality of 38 quoted manufacturing companies listed on the Nigerian Exchange Group between 2019 and 2024. Using 228 firm-year observations, results show that higher digital adoption significantly reduces reporting lag by an average of 18 days, decreases restatements by 0.12 per year, and increases IFRS compliance scores by 6.21 points and transparency scores by 1.34 units. Regression analysis confirms that digital tools such as ERP, AI, blockchain, and cloud-based platforms enhance timeliness, reliability, and disclosure completeness at a 5% significance level. Primary qualitative evidence indicates that automated internal controls, real-time error detection, and structured governance notes further strengthen reporting quality. Challenges including infrastructural limitations, cybersecurity concerns, and uneven adoption moderately affect outcomes. Overall, digitalization is a critical driver of accurate, timely, and transparent financial reporting, contributing to investor confidence and corporate accountability in emerging economies. The findings underscore the strategic role of digital technology in improving corporate governance and operational efficiency in Nigerian manufacturing firms. The study recommends that firms should accelerate adoption of digital tools such as ERP, AI, and cloud reporting to improve timeliness and accuracy of financial reports.