Digital transformation has emerged as a pivotal driver of efficiency, transparency, and accountability in public financial management (PFM). Nigeria’s adoption of the Financial Management Information System (FMIS) reform provides a critical case study for understanding both the opportunities and challenges inherent in digitizing PFM processes in developing economies. This paper reviews the implementation of FMIS in Nigeria, assessing its role in enhancing budget preparation, expenditure control, revenue management, and reporting standards. The study highlights the reform’s contribution to curbing leakages, reducing manual inefficiencies, and fostering fiscal discipline, while also analyzing persistent obstacles such as infrastructural deficits, capacity gaps, and resistance to change. Drawing on lessons from Nigeria’s experience, the review identifies best practices and offers insights for policymakers, development partners, and practitioners seeking to strengthen PFM reforms through digital transformation. The findings underscore that while FMIS reforms are not a panacea, their effective integration into broader governance frameworks can accelerate fiscal sustainability and improve public service delivery.