Real-Time Accounting Systems and their Effect on Liquidity Risk Management in Nigerian Banks

Emeje Susan Omotivie; Arhuere Hephzibah Orupkesheke; Taslim Omoniyi Ibrahim

doi:10.56201/jafm.vol.12.no4.2026.pg390.404

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Real-Time Accounting Systems and their Effect on Liquidity Risk Management in Nigerian Banks

Emeje Susan Omotivie, Arhuere Hephzibah Orupkesheke, Taslim Omoniyi Ibrahim

Abstract

This study employs a quantitative panel data methodology to examine the effect of real-time accounting system adoption on liquidity risk management outcomes in Nigerian deposit money banks . Using an unbalanced panel of 12 listed Nigerian DMBs observed over the period 2019–2023, we construct a composite RTAS Adoption Index (scale 1–5) from publicly disclosed annual report disclosures and compute fixed-effects and generalised method of moments panel regressions with the Liquidity Coverage Ratio and Net Stable Funding Ratio as dependent variables. Controlling for bank size, capital adequacy, non- performing loans, GDP growth, and inflation, we find that a one-unit increase in the RTAS Index is associated with a statistically significant increase of 12.47 percentage points in LCR (p < 0.001) and 8.34 percentage points in NSFR (p < 0.01). Results are robust to alternative estimators including pooled OLS and Arellano-Bond GMM. These findings support the conclusion that RTAS adoption materially strengthens intraday liquidity monitoring capabilities and regulatory compliance in the Nigerian banking sector. Policy implications for the Central Bank of Nigeria and bank management are discussed.

Keywords

Real-time accounting systemsliquidity coverage rationet stable funding ratioNigerian bankspanel datafixed effectsGMMBasel IIICBN. JEL Codes: G21M41O55C23

References

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Real-Time Accounting Systems and their Effect on Liquidity Risk Management in Nigerian Banks

Abstract

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