Assessing the Impact of Cashless Banking on Economic Growth in Nigeria

Abstract

Notwithstanding the availability of cashless banking instrument in Nigeria, its definite impact on economic growth has not been well established. The goal of this study is to determine how Nigeria's economic growth is impacted specifically by cashless banking. Multiple regression analysis employing the ordinary least-square (OLS) approach was used in a quantitative design. However, the federal office of statistics and the CBN annual report provided the secondary data for this study. The relevance of the data is examined using the Ordinary Least Squares (OLS) approach. Augmented Dickey Fuller (ADF) unit root tests were also used in several tests to determine the viability of the model assumptions. The data indicate that point-of-sale terminals were relevant for economic growth throughout the study period. The results shows that cashless banking have significant effect on GDP in the long run. Users' education, availability in the hinterlands and security of the gadgets for the operators could enhance wide usage and acceptability. The government and bankers should work harder on building infrastructure and launching aggressive public awareness efforts in the meanwhile.