IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 8 2024
DOI: 10.56201/jafm.v10.no8.2024.pg21.39

---

Cashless Policy and Manufacturing sector performance in Nigeria

Ikechukwu John Oduche and Chinedu Okechukwu Chukwunwa

---

Abstract

The study examined the effect of cashless policy implementation on the performance of Nigerian manufacturing sector. The specific objective was to determine the effect of point of sale (POS) channel, web channel and automated teller machine (ATM) channel of cashless policy on the real gross domestic product of the Nigerian manufacturing sector. Ex-post facto research design was employed in the study. Secondary data were obtained from the Central Bank of Nigeria Statistical Bulletin from 2012 to 2022. The time series data were analyzed using descriptive analysis and the Robust Least Square (RLS) regression method for hypotheses testing. It was found that: POS channel of cashless policy has a significant positive effect on the real gross domestic product of the Nigerian manufacturing sector (p=0.0338); Web channel of cashless policy has a non-significant positive effect on the real gross domestic product of the Nigerian manufacturing sector (p=0.3322); Automated teller machine (ATM) channel of cashless policy has a significant negative effect on the real gross domestic product of the Nigerian manufacturing sector (p=0.0212). In conclusion, the implementation of cashless policies in Nigeria has significant implications for the performance of the manufacturing sector, offering opportunities to enhance efficiency, transparency, and financial inclusion while also presenting challenges related to infrastructure, security, and cost. The study recommends that Nigerian government, internet service providers, financial institutions, and manufacturing businesses should enhance cybersecurity measures and invest in internet infrastructure to mitigate risks associated with online transactions in the manufacturing sector.

keywords:

Cashless Policy, Performance of Nigerian Manufacturing Sector, Point of Sale

---

References:

Acha, I. A., Kanu, C., & Agu, G. A. (2017). Cashless policy in Nigeria: The mechanics, benefits
and problems. Innovative Journal of Economics and Financial Studies, 1(1), 28-38.
Agbaeze, C. C. (2020). Impact of Cashless Policy on Financial Inclusion in Nigeria.
International Journal of Innovation and Applied Studies, 30(2), 517-526.
Agu, A. O., & Agu, S. V. (2020). Cashless policy and the Nigerian economy: A disaggregated
approach. International Journal of Humanities Social Sciences and Education, 7(4),
21-30.
Ajayi, L. B. (2014). Effect of cashless monetary policy on Nigerian banking industry: Issues,
prospects and challenges. International Journal of business and finance management
research, 2(1), 23-34.
Ajudua, E. I., Nwokoro, A. N., & Ojima, D. (2021). Analysis Of The Nigerian Manufacturing
Sector Performance Under Trade Globalization. Journal of Academic Research in
Economics, 13(2).
Arora, V. (2020). Transaction Cost Theory and Its Impact on International Business
Decisions. Issue 3 Int'l JL Mgmt. & Human., 3, 377.
Chukwuma, I. C., Onodugo, I. C., & Eeamama, M. (2020). Impact of cashless policy on the
economic growth of Nigeria. International Journal of Multidisciplinary Research and
Development, 7(7), 11-17.
Dabo, Z. (2019). Effect of cashless policy on economic growth in Nigeria. AFIT International
Journal of Economics (AIJOE), 1(1), 297-313.
Danmola, R. A., Olateju, A. O., & Aminu, A. W. (2017). The impact of foreign direct
investment on the Nigeria manufacturing sector: A time series analysis. European
Scientific Journal, 13 (31), November, 521-556.
Ejiobih, C., Oni, A. A., Ayo, C. K., Bishung, J., Ajibade, A., Koyejo, O., & Olushola, A. (2019,
August). Empirical review of the challenges of the cashless policy implementation in
Nigeria: a cross-sectional research. In Journal of Physics: Conference Series (Vol.
1299, No. 1, p. 012056). IOP Publishing.
Ezeanolue, E. T. (2022). The effect of cashless economy on the performance of small scale
enterprises in Anambra State. ANSPOLY Journal of Innovative Development (AJID),
1(2), 143-161.
Gambo, N., Ussaini, D. T., & Ozah, J. P. (2019). Effect of cashless policy on Nigeria’s
economic growth. Malete Journal of Accounting and Finance, 1(1), 22-35.
Henry Chinenye, U., Anyanwu, F. A., & Amakor, I. C. (2024). Impact of cashless policy on
the Nigerian economy (2009-2022). African Banking and Finance Review Journal,
9(9), 40-54.
Igbara, F. N., Emerenini, F. M., & Daasi, G. L. (2015). The impact of cashless policy on small
scale businesses in Ogoni Land of Rivers State, Nigeria. Journal of Economics and
Finance, 6(3), 33-38.
Ketokivi, M., & Mahoney, J. T. (2020). Transaction cost economics as a theory of supply chain
efficiency. Production and Operations Management, 29(4), 1011-1031.
Mamudu, Z. U., & Gayovwi, G. O. (2019). Cashless policy and its impact on the Nigerian
economy. International Journal of Education and Research, 7(3), 111-132.
Markjackson, D., Johnny, N., & Siaisiai, S. T. (2018). Foreign trade and its impact on economic
growth
in
Nigeria. International
Journal
of
Economics,
Commerce
and
Management, 6(4), 748-761.
Matthew, O. M., & Mike, A. (2016). Cashless economic policy in Nigeria: A performance
appraisal of the banking industry. IOSR Journal of Business and Management, 18(10),
01-17.
Muotolu, P. C., & Nwadialor, E. O. (2019). Cashless policy and financial performance of
deposit money banks in Nigeria. International Journal of Trend in Scientific Research
and Development, 3(4), 465-476.
Neoh, S. F., & Lai, T. S. (2021). The impact of trade openness on manufacturing Sector
performance: evidence from Malaysia. Journal of Economics and Sustainability, 3(1),
11-11.
Nwakoby, C., Chukwu, K. O., & Oghenetega, E. O. (2020). Effect of cashless policy on deposit
money banks profitability in Nigeria. Asian Journal of Economics, Business and
Accounting, 19(4), 48-63.
Nworie, G. O. & Okafor, T. G. (2023). A Literature Review on the Challenges of the Use of
Point of Sale (POS) Terminals in the Nigerian Banking System. International Journal
of Academic Information Systems Research, 7(2), 1-14. http://ijeais.org/wp-
content/uploads/2023/2/IJAISR230201.pdf
Nworie, G.O., Okafor, T.G. & John-Akamelu, C.R. (2022). Firm-level traits and the adoption
of computerised accounting information system among listed manufacturing firms in
Nigeria.
Journal
of
Global
Accounting,
8(3),
128-148.
Retrieved
from
https://journals.unizik.edu.ng/index.php/joga/article/view/1858
Odumusor, C. J. (2023). Effect of cashless policy on the performance of small-scale businesses
in Nigeria. Journal of Contemporary Research (JOCRES), 2, 2.
Ogunlade, D. A., & Amodu, M. A. (2024). The Influence of the Cashless Policy on Economic
Growth and Development. KIU Journal of Social Sciences, 10(1), 39-50.
Okafor, C. A. (2020). Cashless policy for business purpose and the performance of deposit
money banks in Nigeria. International Journal of Innovative Finance and Economics
Research, 8(3), 1-13.
Omokugbo, O. J., & Festus, I. O. (2020). Cashless policy in Nigeria: Effects, Challenges and
prospects. Journal of Finance and Accounting, 8(1), 18.
Onakoya, A. B., Fasanya, I., & Babalola, M. T. (2012). Trade openness and manufacturing
sector growth: An empirical analysis for Nigeria. Mediterranean Journal of Social
Sciences, 3(11), 637-646.
Oppong-Baah, T., Bo, Y., Twi-Brempong, C., Amoah, E. O., Prempeh, N. A., & Addai, M.
(2022). The Impact of trade openness on economic growth: The case of Ghana and
Nigeria. Journal of Human Resource and Sustainability Studies, 10(1), 142-160.
Phinaonyekwelu, N., & Nnabugwu, O. C. (2018). Effect of cashless economy on the
performance of micro, small and medium scale enterprises in Anambra State, Nigeria.
International Journal of Science and Research, 9(5), 375-385.
Rofiat, A. (2017). The effect of cashless banking on the financial performance of small and
medium scale enterprises. International Journal of Advanced Research in Public
Policy, Social Development and Enterprise Studies, 2(2), 133-142.
Sade, A. T., Esther, A. B., Oladipo, A. D., & Adedokun, D. (2021). Trade Openness and
Manufacturing Sector Performance in Some Selected West African Countries: A Panel
Study Approach. Acta Universitatis Danubius. Œconomica, 17(3).
Sola, O., Obamuyi, T. M., Adekunjo, F. O., & Ogunleye, E. O. (2013). Manufacturing
performance in Nigeria: Implication for sustainable development. Asian economic and
financial review, 3(9), 1195.
Tadelis, S., & Williamson, O. E. (2012). Transaction cost economics (pp. 159-189).
eScholarship, University of California.
Taiwo, J. N., Oluwafemi, A. K., Afieroho, E. O., & Agwu, M. E. (2016). Appraisal of cashless
policy on the Nigerian financial system. West African Journal of Industrial and
Academic Research, 16(1).

DOWNLOAD PDF

---

Back