This paper examines the transformation of accounting practices through the application of Artificial Intelligence (AI) technologies within selected ministries in Nigeria. As the demand for accuracy, speed, and transparency in public financial management increases, AI presents innovative solutions that can modernize accounting processes and enhance accountability. Using qualitative data collected from accounting professionals across five federal ministries, the study reveals both the potential benefits and the practical challenges associated with AI adoption. Key findings indicate low adoption levels due to limited technical capacity, infrastructural deficiencies, and policy gaps. However, where implemented, AI has improved the efficiency of reporting and fraud detection. The paper recommends strategic investment in capacity building, infrastructure development, and clear regulatory frameworks to fully harness the benefits of AI in public sector accounting. The study contributes to the discourse on digital transformation in governance and provides a roadmap for sustainable accounting reforms in Nigeria