Effect of Electronic Payment Systems on Economic Growth in Nigeria

Attah; Ojomakpene Robert; Vincent; Harrisson; Abu; Amana

doi:10.56201/ijbfr.vol.12.no2.2026.pg148.163

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Effect of Electronic Payment Systems on Economic Growth in Nigeria

Attah, Ojomakpene Robert, Vincent, Harrisson, Abu, Amana

Abstract

This study investigated the effect of electronic payment systems on economic growth in Nigeria, addressing the observed disparity between the rapid adoption of electronic payments and the country’s economic performance. Focusing on three key payment systems, Mobile Application Payment Systems, Point of Sale Systems, and Automated Teller Machine Transactions (independent variables, chosen based on the sequence of deployment and widespread adoption), the research examined their short-run and long-run impacts on real Gross Domestic Product . Utilising an ex-post facto research design, the study employed quarterly secondary data from the Central Bank of Nigeria and the Nigerian Inter-Bank Settlement System, spanning from 2010 to 2023. The ARDL modelling approach is applied to analyse the data, supplemented by diagnostic tests for stationarity, cointegration, and model robustness. The findings revealed varying effects across payment systems. In the long run, POS transactions exhibited a significant positive impact on economic growth, whereas ATM and MAP had statistically insignificant and negative impacts, respectively. In the short run, both ATM and POS transactions had significant negative effects on GDP, indicating adjustment costs and infrastructure challenges, while mobile app payments remained insignificant. The study concluded that while electronic payment systems hold potential for fostering growth, their impact in Nigeria is currently moderated by transitional frictions and system inefficiencies. Recommendations included enhancing ATM infrastructure to support productive transactions, expanding and securing POS networks to maximise long-term benefits, and improving the security, reliability, and sectoral integration of MAP platforms to translate technological adoption into sustained economic gains.

Keywords

Automated Teller MachineEconomic GrowthElectronic Payment SystemsMobile Application PaymentsNigeriaPoint of SaleReal GDPARDL (Autoregressive Distributed Lag)

References

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Effect of Electronic Payment Systems on Economic Growth in Nigeria

Abstract

Keywords

References

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