Enhancing Financial Accountability in Oil Spill Compensation Funds: Integrating Accounting and Environmental Management in Rivers State, Nigeria

Abstract

This study investigated the relationship between financial management systems, corruption challenges and the role of financial technology in enhancing accountability in oil spill compensation fund management in Nigeria. Data from 324 respondents across regulatory agencies, oil companies, communities, and NGOs were analyzed using descriptive statistics, correlation, and regression techniques. Results revealed that existing financial management systems significantly influence fund transparency and disbursement efficiency (R2 = 0.377, p < 0.05), while corruption and mismanagement negatively affect equitable distribution (r = -0.661, p < 0.001). Conversely, the adoption of FinTech solutions such as blockchain and AI-driven auditing strongly enhances accountability (R2 = 0.540, p < 0.001). The study concludes that integrating technological innovations with institutional reforms and community participation provides a sustainable pathway for transparent compensation governance.