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

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.