Impact of Cashless Policy on Economic Growth in Nigeria

OKEME; Emmanuel; GBARAYORKS; Lewis Dormaa; ANINWAGU; Victor; Udofia; Joseph John

doi:10.56201/ijefm.v10.no6.2025.pg32.45

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Impact of Cashless Policy on Economic Growth in Nigeria

OKEME, Emmanuel, GBARAYORKS, Lewis Dormaa, ANINWAGU, Victor, Udofia, Joseph John

Abstract

Nigeria's cashless policy is examined in this study in relation to economic growth between the first quarter of 2009 and the fourth quarter of 2019. The use of key cashless policy indicators, including Point of Sale (POS), online payments, mobile money transactions, and ATM usage, was employed. GDP was utilized to calculate economic growth. After the F-bound test confirmed a long-term link and found various degrees of integration between the variables, the Autoregressive Distributed Lag (ARDL) model was used. All cashless transactions, including mobile money and online payments, showed a noteworthy long-term impact on economic performance, according to the ARDL data, while point-of-sale and automated teller machine transactions had a strong short-term impact on economic growth. Given these findings, it is suggested that mobile payment systems be optimized for economic growth by reducing transaction costs, increasing public awareness, and expanding mobile network coverage. Similarly, enhancing web-based financial services by improving infrastructure and usability can further amplify their positive effects on economic development. Financial institutions should invest in technologies that enhance transaction security, speed, and accessibility to ensure a broader population benefit from cashless services. Improving the functionality and efficiency of both ATMs and web services can help maximize their contribution to economic expansion, driving more sustainable growth in Nigeria's financial ecosystem.

Keywords

Point of SaleAutomated Teller MachineGross Domestic ProductInternet

References

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Impact of Cashless Policy on Economic Growth in Nigeria

Abstract

Keywords

References

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