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Deposit Money Banks’ Electronic Payment Charges and Entrepreneurial Development: Nigeria Experience

Ele, Linus Egwu, Ekaete Dickson Iwatt, Daniel Nwankwo, Esin, Happiness Sunday

Abstract

The focus of this study was to examine deposit money banks electronic charges and entrepreneurial development in Nigeria. The specific objectives of the study were to: assess the effect of deposit banks electronic transfer charges on youth small scale business enterprise growth in Nigeria, to ascertain the effect of deposit banks ATM charges on youth small scale business enterprise growth in Nigeria, and to examine the effect of deposit money banks stamp duty charges on youth small scale business growth in Nigeria. The study adopted ex post facto and ordinary least squares regression to analyze the data and test the hypotheses. The major findings of the study indicated that deposit money banks electronic money transfer charges has significant negative effect on youth entrepreneurial development in Nigeria[regression coefficient = -2.001632, p-value = 0.0000], deposit banks ATM charges has significant negative effect on youth entrepreneurial development in Nigeria [regression coefficient = -0.817125, p-value = 0.0069], and deposit banks stamp duty charges has significant negative effect on youth entrepreneurial development in Nigeria[regression coefficient = -0.017420, p-value = 0.0062]. Based on the findings, the study concluded that the deposit bank charges has negative effect on the development of youth entrepreneurial activities in Nigeria. The study based on the findings recommended that the government in conjunction with the CBN should collaborate with the deposit banks to reduce or eliminate electronic transfer charges as a way of incentivizing youth entrepreneurs to increase entrepreneurial activities which is a catalyst for growing the economy, there is need for the banks to review downward their ATM charges, this will further encourage entrepreneurial engagement among JAFM youths, and the federal government should review the stamp duty charges downward in order to reduce cost of production on youth entrepreneurial activities and further encourage entrepreneurial expansion activities and development.

Keywords

ATM ChargesBusiness GrowthElectronic Transfer ChargesEntrepreneurial DevelopmentDeposit Bank Stamp Duty Charges

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