IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO, 8 2024
DOI: 10.56201/ijebm.v10.no8Sept.2024.pg271.286

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Empirical Assessment of the Effects of Financial Technology on Economic Growth in Nigeria

Patience Daniel, Kindai

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Abstract

The last one decade has witnessed tremendous innovations and breakthrough of technology in the financial sector across the globe and Nigeria is not left out yet studies in the literature focusing on Nigeria is relatively scarce. The paper assessed the effect of financial technology on economic growth in Nigeria spanning a data period of 2000-2022. The gross domestic product, a proxy for economic growth, is made as a function of automated teller machine, point-on-sale, web online payments, mobile transfers and national electronic fund transfers. The data were sourced from the Central Bank of Nigeria statistical bulletin and World Bank data basis. The restricted error correction model was utilized by the study and findings indicated evidence of long run relationship between economic growth and fintech variables. Accordingly, the study found that both in the short run and long run economic growth is significant and positively responsive to changes in automated teller machine, point-on-sale and mobile transfer channels contrary to significant and negative response to changes in web online payments and NEF transfers in Nigeria. Therefore, the study recommended among other things that government may consider acceleration in the growth of financial technology by making policy that ensures that more ATMs are deployed to previously excluded areas like rural communities with a view to boosting financial inclusion and economic growth. Also, fintech firms should ensure that activities of POS operators are regulated to prevent frauds to ensure financial re-engineering thereby enhancing economic growth. Finally, effort should be intensified by relevant authorities to develop the infrastructures sector with a view to making the use of smart phones affordable thereby allowing for more transactions in mobile and web online payment platforms in Nigeria.

keywords:

Financial Technology, Economic Growth, ECM, Nigeria. JEL: O32, O47.

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