Blockchain-Enabled Triple-Entry Accounting for Enhancing Financial Transparency in Microfinance Institutions: A Case Study of Edo State, Nigeria

DOI

10.2991/978-94-6463-930-8_6How to use a DOI?

Keywords

Blockchain; Triple-Entry Accounting; Microfinance; Financial Transparency

Abstract

This study introduces a novel exploration into the application of blockchain-enabled triple-entry accounting (TEA) to enhance financial transparency and accountability in microfinance institutions (MFIs) operating in Edo State, Nigeria. Unlike traditional double-entry accounting, TEA leverages blockchain technology to create an immutable, decentralized ledger that records transactions with a third entry, ensuring real-time verification and reducing opportunities for financial misrepresentation. Despite the growing adoption of blockchain in financial systems globally, its integration into microfinance accounting, particularly in developing regions like Edo State, remains unexplored. This research investigates the feasibility, challenges, and impacts of implementing TEA in MFIs, focusing on its potential to mitigate fraud, improve stakeholder trust, and enhance operational efficiency. Using a mixed-methods approach, data were collected through surveys and in-depth interviews with MFI managers, accountants, and clients in Edo State, complemented by a pilot implementation of a blockchain-based TEA system. Findings reveal that TEA significantly reduces reconciliation errors, enhances auditability, and fosters trust among low-income clients, though challenges such as technological infrastructure and digital literacy persist. This study contributes to accounting literature by pioneering the application of blockchain-driven TEA in microfinance, offering practical implications for policymakers and practitioners in Edo State and similar contexts. Future research could explore scalability across other Nigerian states.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Junaidu Shehu
PY  - 2025
DA  - 2025/12/26
TI  - Blockchain-Enabled Triple-Entry Accounting for Enhancing Financial Transparency in Microfinance Institutions: A Case Study of Edo State, Nigeria
BT  - Proceedings of the International Conference on Sustainable Business and Entrepreneurship (ICSBE 2025)
PB  - Atlantis Press
SP  - 61
EP  - 68
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-930-8_6
DO  - 10.2991/978-94-6463-930-8_6
ID  - Shehu2025
ER  -