IIARD International Institute of Academic Research and Development

WORLD JOURNAL OF ENTREPRENEURIAL DEVELOPMENT STUDIES (WJEDS )

E-ISSN 2579-0544
P-ISSN 2695-2483
VOL. 10 NO. 2 2025
DOI: 10.56201/wjeds.v10.no2.2025.pg158.168

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Electronic Payment: A Panacea for Improved Financing and Performance of Private Organizations in Nigeria

Edith Ebiye Boussa-Dibite and BOUSSA, Samuel

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Abstract

The use of electronic payment has in the last decade witnessed a persistently rising momentum, and private organizations in Nigeria are also swinging in this momentum. But, with this persistently rising momentum of carrying out transactions using electronic payment mediums, such as POS machines, USSD codes and web or online payment, what bothers one is, “how the continues use of electronic payment system has contributed to the financing and performance of private organizations in Nigeria?” consequently therefore, the study examined the effect of electronic payment on the financing and performance of private organizations in Nigeria using the Autoregressive Distributed Lagged Model (ARDL) to analyze quarterly secondary data sourced from various issues of central bank of Nigeria (CBN) statistical bulletin. The empirical result showed that electronic payment significantly impacts on the financing of private organizations, but credit to private organizations, however, lacks significant impact on the performance of private organizations in Nigeria. Based on these findings, the study concluded that electronic payment has significantly improved both the financing and performance of private organizations in Nigeria, while credit or finance to private organizations has failed at significantly improving the performance of private organizations in Nigeria, owing to discriminatory credit or financing policies of banks which marginalizes most private organizations, especially small and medium scaled private organizations, from accessing funds or finance. The study recommended that more of selective monetary control measures should be used by the CBN to ensure the flow of credit to small and medium scaled private organizations. It was also recommended that the CBN should prioritize minimizing every risk associated with electronic payment platforms.

keywords:

Payment system, point of sale (POS) Machine, Unstructured Supplementary Service

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