ASSESSMENT OF ACCOUNTING INFORMATION AS A TOOL FOR DECISION MAKING IN THE NIGERIAN MICROFINANCE BANKING SECTOR

This study examined the effectiveness of accounting information as a tool for decision-making in the Nigerian microfinance banking sector, with specific focus on microfinance banks in Akure, Ondo State. The study aimed to assess the extent to which the qualitative characteristics of accounting information namely relevance, faithful representation, and completeness impact management decision-making within these institutions. A descriptive research design was employed, and primary data were collected through structured questionnaires distributed to 30 selected staff and management members across various microfinance banks in Akure. The responses were analyzed using descriptive statistics and regression analysis via SPSS software. The findings revealed that the relevance of accounting information had a significant positive relationship with management decision-making (R = 0.712, R² = 0.507, p < 0.05). Similarly, faithful representation of financial information was shown to have a significant positive effect (R = 0.689, R² = 0.474, p < 0.05), while completeness of the financial statement information also significantly impacted decision-making processes within the microfinance banks (R = 0.658, R² = 0.433, p < 0.05). These results indicate that when accounting information is accurately prepared, complete, and objectively represents the economic activities of the bank, it enhances managerial decisions related to planning, forecasting, and operational control. The study concluded that accounting information remains a critical tool in the strategic and operational decision-making process of microfinance institutions. It recommended that management of microfinance banks should prioritize the engagement of qualified accounting professionals, regular training on IFRS compliance, and strict adherence to full disclosure principles in financial reporting. These measures will improve the reliability of financial information, which in turn will boost decision quality, stakeholder confidence, and organizational sustainability. The findings of this research contribute to the understanding of the role of financial reporting in microfinance banking operations and serve as a guide for policymakers, regulators, and financial institutions aiming to enhance decision-making through quality accounting information.