Cashless Policy In Nigeria Research Articles

Cashless policy and socio-economic development in Aba City Nigeria

The study examined impact of cashless policy on socio-economic development in Aba City. Specifically, the study sought to: examine the impact of automated teller machine (ATM) transaction on living condition in Aba City and determine the impact of Point of sales transaction (POS) transaction on employment generation in Aba City. The research design was descriptive survey research design. Study Area was Aba City, Nigeria. The sample size of 400 respondents was drawn from population of 2.534 million (estimated population 2016) indigenes of Aba City. The sample size of 400 respondents was drawn with Taro Yamane sampling technique. Research questions of the study were answered using mean score and standard deviation. The hypotheses stated were tested using regression analysis. The empirical result of the study showed that automated teller machine (ATM) transaction has significant impact on living condition in Aba City (t-statistic = 6.446; P-value (0.000) < Sig-value (0.05) and Point of sales transaction (POS) transaction has significant impact on employment generation in Aba City (t-statistic = 7.238; P-value (0.000) < Sig-value (0.05). The study recommended that monetary authority of Nigeria (Central Bank of Nigeria) should provide public enlighten education and awareness on the benefits of automated teller machine, point of sales, and internet banking as enhancers of cashless policy in Nigeria.

Cashless Policy and Economic Growth in Nigeria

The impeding infrastructural decay, inefficient security system on financial information and the high rate of cybercrime impedes efficient and effective electronic payment system which in turn affects the attainment of objective of cashless policy in Nigeria. In view of this, this study examined the relationship between cashless policy and economic growth of Nigeria. Specifically, the study aimed at ascertaining the relationship between web-based transactions, POS transactions and ATM transactions with real GDP of Nigeria over a period of 10 years (2013-2022). This study adopted the ex-post facto design with data obtained from the Nigerian Stock Exchange fact books, National Bureau of statistics (NBS) and Central Bank of Nigeria statistical bulletins for the various years under study. The collected data for this study were computed and analyzed using descriptive statistics and multiple linear regression tools with the aid of SPSS 20.0 software. The findings revealed that POS transactions and ATM transactions have an insignificant positive relationship with real GDP while web-based transactions showed an insignificant inverse relationship. Based on the analysis of variance (ANOVA), the F-change test suggests that the model is statistically significant (p-value = 0.020<0.05). This implies that the joint effect of the predictor variables is statistically significant. In view of this, it is however concluded that cashless policy plays a critical role in improving the economic growth of Nigeria. The study recommended, amongst others, that policymakers should prioritize initiatives that promote secure online transactions, such as implementing robust cyber security measures and ensuring a reliable internet infrastructure.

Gains and Pains of the Cashless Policy in Nigeria on Akwete-Ndoki Community, Abia State

This study examined the effects of the cashless policy on Akwete Ndoki community in Abia state. This policy according to the Central Bank of Nigeria (CBN) is to the best interest of Nigerians. It will help to check terrorism financing, counterfeiting and imbalances in fiscal space as well as to enable CBN take control of the currency in circulation. However, despite the perceived benefits of this policy, it also inflicted pains on the masses. The study anchored on the Modernization Theory as its theoretical framework. Data was collected using digital mixed method design which is made of structured questionnaire and in-depth interview guide which was administered electronically. For the analysis of the data, we used frequency count for the quantitative data and content analysis for the qualitative data. Findings showed that though the cashless policy may have a long-term benefit, the immediate effects on the people living in Akwete Ndoki community and nearby rural areas is pain, anguish and misery. Based on the findings the study recommends amongst others that in developing countries with low computer literacy like Nigeria, transition from full cash to cashless society should be a gradual process.

An Empirical Investigation into the Effects of Cashless Policy on Deposit Money Banks Liquidity in Nigeria

This study focused on the effects of cashless policy on deposit money banks liquidity (DMBs) in Nigeria. The data for the study were obtained from the Central Bank of Nigeria statistical bulletins and the World Bank. A significant effect of cashless policy (point of sale, Web Pay and Mobile Pay) on deposit money banks liquidity spanning for the period of (2013-2020) in Nigeria was evaluated with the help of regression analysis. The trace test indicate 1 cointegration which meant there was a long term relationship among the research variables. The major objectives of the study were to examine the effects of point of sale (POS) on deposit money banks liquidity, to determine the effects of Mobile Pay on deposit money banks liquidity and to assess the effects of Web Pay on deposit money banks liquidity. The policy implication is that point of sale, web pay and money pay are function of cashless policy in Nigeria. Therefore, the study recommends that the Central Bank of Nigeria (CBN) should intensify its effort for full implementation of cashless policy, CBN should also provide enabling environment for the smooth conduct of cashless policy and facilitate, encourage and enforce on all deposit money banks to comply with the policy. Deposit money banks should intensify their effort toward the improvement of the number of automated teller machine, point of sales terminals and internet facilities. This study therefore placed more emphasis on the level and rate of individual access to cashless financial services with the aims of promoting deposit money banks liquidity in Nigeria.

EFFECTS OF CASH CRUNCH ON SMALL AND MEDIUM SCALE ENTERPRISES IN DELTA STATE

Small and Medium Scale Enterprises (SMEs) sales turnover has been drastically affected because customers are now prone to down their expenditures due to the effect of the cashless policy in Nigeria. This study examines the effects of the cash crunch on the sales of SMEs in Delta State. A descriptive survey design was adopted while one hundred and ten copies of research questionnaires were distributed to SMEs owners. However, eighty-seven copies of the retrieved questionnaires were found relevant to the analysis. The result indicates that the cash crunch had positive and statistically significant relationship with the sales of SMEs at a 0.05 level of significance. The study recommends that government and the Central Bank of Nigeria (CBN) should compel commercial banks to invest in enhancing network bandwidth to improve electronic transfers and encourage electronic money usage.
 Keywords: Cash Crunch, Small and Medium Scale Enterprises, Cashless Policy, Electronic Transfer, Electronic Money.

Evaluation of Nigerian Government’s New Cashless Policy: Insights from Select National Dailies

The Central Bank of Nigeria (CBN) in a bid to reduce inflation and stabilize the country’s economy, introduced cashless policy in 2012. The move became more pronounced following the recent efforts to redesign the country’s 200, 500 and 1,000-naira local currency denominations, which resulted in high scarcity of money in circulation. Since then, the initiative has remained a contentious issue. This study appraised the level of success, impacts, challenges and prospects of the policy as reported in select Nigerian national daily newspapers. The study was anchored on the Diffusion of Innovation and Agenda Setting theories, while relying on secondary data, sourced from five Nigerian national daily newspapers. Manifest contents of the editorials/opinions and feature stories contained in the newspapers were analysed. Findings show that absence of appropriate legal/regulatory framework for e-payment; poor epileptic electric supply, illiteracy, lack of financial infrastructure; risk of identity theft and poor service from network providers were among the factors that hamper the success of the cashless policy in Nigeria. The paper holds that cashless society provides safer and more practical alternative means of transacting businesses than over reliance on physical cash, and that the initiative can improve on Nigeria’s economy only when well implemented, and calls on the government, financial institutions, network providers, academic institutions and other key stakeholders to work in synergy for a successful cashless economy to be achieved in Nigeria.

Assessment of Internet Marketing of Cassava Tubers; Its Implications to Nigeria Cashless Policy in Portharcourt Metropolis

This study assesses the internet marketing of Cassava tubers and its implications to Nigeria cashless policy in Port Harcourt metropolis, Rivers State. A random sampling technique was used for the selection of 83 respondents of cassava tuber marketers in Port Harcourt metropolis. Primary data was used and collected with the aid of structured questionnaire. Descriptive Statistics and percentage analysis were used to analyse the data. It was revealed that 61% of the respondents are females, while 39% of males. Implying that there are more women participants in the marketing of cassava tubers than men. Also 59% were between the ages of 20-40years, and 36% were between the ages of 40-60years; Implying that most of the respondents are of active age. Findings further shows that about 50.60% of respondent had no form of formal education, while 33.73% had only primary education. This implies that majority of cassava tuber marketers have no formal education. It was found that 59% of respondent have marketing experience of 0-6years and 34.94% of respondents had an experience of 6-12years in cassava tuber marketing. This is an indication that most of the marketers have significant experience in cassava tuber marketing. Furthermore, a percentage of 51.81% of respondents are married and this attributes to the fact that cassava tuber marketing is a profitable venture that can serve as a reliable source of livelihood for the family. 59% has household size of 0-5 persons, this implies that majority of marketers had or utilized family labour during operations.Most half of the world population has access to the internet; this is unreasoningly in developed nations like Nigeria and other African nations, in rural communities where education and literacy rates are significantly low, mobile phones technology tends to be used for communication and social media. This offers a great difficulty for the introduction of digital agriculture applications which necessitates more forward thinking digital skills, low global Smartphone ownership in rural communities in addition to the high cost of internet and insufficient system coverage also present difficulties of mobile agricultural applications. An effective internet marketing medium of cassava tubers, given the cashless policy can help to increase the demand for the crop, and improve the livelihood of marketers and other stakeholders in the value chain. From the above information gotten, there is need for educating and creating the awareness of internet marketing tools as a marketing medium; as this would help to save cost and increase Marketer’s Revenue.There is need for Creating/Educating the Awareness of the internet, as a marketing tool given the cashless policy in Nigeria, Subsidy on internet devices/gadgets should be established by the government; in order to improve internet marketing of products sequel to the cashless policy. There is a need for adequate internet platforms, for the marketing of agricultural producers.

Analysis of Infrastructural Challenges, Cybercrime, and the Cashless Policy in Nigeria

Abstract
 This study makes an analysis of infrastructural challenges and the cashless policy in Kaduna state, Nigeria. A survey was conducted to collect the primary data through a structured questionnaire and interviews with bank customers, bank officials, and security personnel to obtain information on infrastructural challenges since the introduction of the Cashless policy by the Central Bank of Nigeria in 2012. Frequency distribution and simple percentage methods are used to analyze the data. Findings show that infrastructural challenges include network failure and infrastructural deficiency, debiting by Automated Teller Machine (ATM) without disbursing cash to beneficiaries, problems not rectified quickly by the banks, and charging by banks for using electronic banking methods. This leads to fraud, cybercrimes, and reduced confidence in the banking system. It is recommended that banks should be made to provide the minimum infrastructure required for cashless policy to succeed. In addition, there should be adequate cyber security measures implemented by banks and the government.

Review of Cashless Economy in Nigeria and the Challenges of Network Infrastructures

The central Bank of Nigeria (CBN) conceptualized the idea of Cashless Economy in 2011 as part of its blueprint to drive economic development and modernise our payment system in line with the Nation’s Vision 2020 goal of being amongst the twenty most developed economies by the year 2020. The Apex bank of Nigeria then came up with a cashless policy with the view of pegging the amount of physical cash to be withdrawn or deposited at a time in commercial banks. The pilot scheme kick started in Lagos, Kano, Anambra and some other states of Nigeria’s major commercial cities with intention of spreading across all the states of federation and the Federal Capital Territory (FCT). It was designed to reduce but not eliminate the amount of physical cash in circulation and encourage more electronic driven transaction channels. A number of researchers agree that this initiative by the CBN is anchored on the fact that an efficient and digitized payment system positively correlates with economic development, which is believed to be a key indicator for economic growth provided that all other factors are constant. This policy involves deployment of Information and Communication Technology (ICT) gadgets through Computer Network Infrastructures. The Policy aims at reducing cost of banking services, improving the effectiveness of monetary policy in managing inflation as well as driving economic growth and development. However, since its inception, the policy has witnessed a number of challenges such as transaction failures resulting from poor network availability, hidden bank charges by commercial banks and cyber crime attacks. This research, therefore, is an opinion paper in which the researcher presents the challenges facing cashless policy in Nigeria and as well as proffer solutions to the identified challenges. A good number of cashless transaction channels were equally discussed and these include Electronic Cards, Automated Teller Machines (ATM), Mobile Banking, Online banking, Point of Sales (POS), and Near Field Communication (NFC). However, they all seem to have a common challenge (Network failures). The study recommends Five Nines availability (Network uptime of 99.999 percent) and Mesh Network design topology amongst others as recommendations.

NEXUS BETWEEN POINT OF SALE, AUTOMATED TELLER MACHINE, MOBILE BANKING AND CURRENCY IN CIRCULATION IN NIGERIA: ARDL BOND TEST COINTEGRATION APPROACH

This paper examines the nexus between point of sale (POS), automated teller machine (ATM), mobile banking (MBK) and currency in circulation in Nigeria. Quarterly data were sourced from Central Bank of Nigeria from January 2009- September 2020. Unit root, ARDL bond test cointegration were employed as techniques of analysis. The findings reveal that, there is significant and long run relationship between the ATM, POS MBK and currency in circulation. ARDL bound test cointegration shows that, there exists a long run cointegrating relationship between the variables under investigation. The estimated coefficient of the error correction term suggests that the system (economy) may correct its previous period disequilibrium by about 49% annually. The paper recommended that Government through the CBN should formulate and improve monetarypolicies (cashless policy) aimed at encouraging and improving E-payment system in order to actualize the objective of cashless policy in Nigeria. Also Government, monetary authorities (CBN, Ministry of finance,) and commercial banks should educate and enlighten the people on the Advantages of using POS, MBK, ATM and CCHEQ in their day to day activities in Nigeria in other to reduce currency in circulation and improve economic performance.

Nature of frauds in Nigeria’s banking ecosystem, 2015-2019

PurposeThis paper aims to examine the nature of frauds and insider involvement in the perpetration of frauds in Nigeria’s banking ecosystem. It probes the payment platforms mostly vulnerable to fraud attacks since the role-out of cashless policy in Nigeria in 2014.Design/methodology/approachUsing secondary data on frauds and forgeries in Nigeria Deposit Insurance Corporation annual report of 2019, the study engaged the data on frauds and forgeries to unpack the complex dynamics in relation to bank frauds in Nigeria.FindingsFindings show that fraud attacks on deposit money banks increased year in year out although the actual monetary loss dropped in 2019 as against 2018. Technology mediated transactions such as the use of automated teller machine and internet-based transactions experienced the most fraud. In relation to the role of insiders, all cadres of staff were involved in the fraud but majority of those involved were temporary staff.Practical implicationsArising from this, it is suggested that banks should continue to strengthen security system and governance structures. Employing temporary staff should be phased out while online and offline vigilance should be mounted.Originality/valueThe study contributes to knowledge by examining the nature of frauds and unveiling the insider dimensions of fraud and the possible factors increasing the vulnerability of casual staff to perpetrate fraud.

Evaluation of Cashless Policy in Nigeria: The Pros and Cons

The essence of this paper is to evaluate the practice of cashless policy that was introduced almost a decade ago in Nigeria. It was discovered through literature that the security threats of ATM users and the inappropriate use of POS is at an alarming rate. The paper used a structured questionnaire as a means of data collection and the data collected were analyzed using descriptive statistics with the use of mean, median, and percentage. The results indicate that the awareness level is almost globally known however, there are still more technological devices and development that is needed for Nigerians to be considered among the top 20 economies by the year 2020 to drive development and modernization of our payment system in line with the Nigerian vision. Based on the findings some recommendations made were: POS should be approved only for the unbanked areas, panic alert buttons should be included in the ATMs, comprehensive insurance should be available for ATM cash hijackers.

Point of Sale and Cashless Policy in Nigeria: Challenges and Prospects

The study examined the impact of Point of Sale (POS) on cashless policy, issues and prospect in Nigeria economy; research questions were formulated and distributed to the sample population of 500 drawn from various POS operating centers in line with the objectives of the study. Four hundred and fifty responses were returned while fifty copies were not returned; the responses were categorized according to strongly agreed, agreed, strongly disagreed, disagreed and neutral with weight of (5,4,3,2,1) assigned to each category respectively to generate acceptable raw data for econometric analysis. The raw data were analyzed using cointegrated, ordinary least squares, autoregressive distributed lag, unit root and Grange causality; the result shows that POS has significant and positive impact on cashless policy in Nigeria. We therefore recommend that POS should be deployed to various areas to facilitates exchange transactions and ultimately reduces cash based related transactions in the economy.

Dimensions of Electronic Fraud and Governance of Trust in Nigeria's Cashless Ecosystem.

A negative outcome of the nascent cashless policy in Nigeria has been persistent electronic banking fraud (e-fraud). Fraud occurrence in any financial space indicates insecurity and loopholes being exploited by fraudsters. This underscores the importance of trust governance in electronic banking and its centrality in a transiting cashless economy like Nigeria. Against this background, we investigated e-banking fraud and the role trust governance plays in both the adoption and refusal to migrate and use electronic banking in Nigeria. Using qualitative methods (in-depth and key informant interviews) of data collection, 30 participants were purposively selected and in some instances reached through the snowball and referral methods. Findings showed internal, external, and collaborative dimensions of e-fraud. Experiences of fraud reportedly affected adoption and migration of bank customers to e-banking platforms. Although weak governance mechanism was reported, banks nonetheless are embracing security mechanisms such as sending SCAM alert messages to customers, while shaming and sack of compromised staff were employed as within-bank measures to secure the confidence of customers in the evolving financial ecosystem.

Cashless Policy in Nigeria: Effects, Challenges and Prospects

This study is to investigate the effects, challenges and prospects of cashless policy on the Nigerian Economy. The objectives of the study are to examine: the effects of cashless policy, the challenges of cashless policy and the prospects of cashless policy on the Nigerian economy. The hypotheses of the study are: there are no significant effects of cashless policy on the Nigerian economy: there are no significant challenges of cashless policy on the Nigerian economy, and there are no significant prospects of cashless policy on the Nigerian economy. In carrying out the study, primary data was used which was sourced through questionnaire. A total of one thousand, two hundred questionnaires were passed and after careful monitoring and supervision, there was hundred percent retrieval and used for the analyses. In analyzing the result, simple frequencies, percentages and t-statistics were used to analyze the research hypotheses. From the analyses, it was found that cashless policy has positive effect on the growth of Nigerian economy. Also, respondents were of the opinion that the introduction of cashless banking in Nigeria has increased the cost of e-payment transactions as well as the normal bank charges as they are required to pay for various e-cards aside from indirect payment for technologies acquired to run cashless business venture by the banks. It was concluded that, in as much as the policy is good, there should be a conscious efforts at improving on information and communication infrastructure that will enhance speed in service delivery, internet security framework to check online fraud so that the public can be assured and protected against cyber attacks and fraud.

Empirical Review of the Challenges of the Cashless Policy Implementation in Nigeria: A Cross-Sectional Research

Since the implementation of the cashless policy on January 1st, 2012 in Lagos state which is aimed at reducing the high cost of cash production, circulation and distribution in Nigerian economy, the set-out goals have not been fully achieved due to several on-going challenges. This survey research was conducted to review challenges of the cashless policy implementation in Nigeria and to identify factors that influence the adoption of electronic payment for exchange of value. The Unified Theory of Acceptance and Usage of Technology (UTAUT) was employed to identify various challenges from data gathered through questionnaires distributed to different stakeholders in the economy. A total of 410 questionnaires were collected and the research work adopted used Partial Least Square (PLS) method and used SmartPLS software during the data analysis. The attendant findings were pivotal to understanding the challenges encountered in implementing cashless policy in Nigeria. Using UTAUT we measured the significance and impact of Social Influence, Facilitating Condition, Effort Expectancy, Performance Expectancy and Behavioural Intent to Use on Actual User Adoption. From the result, facilitating conditions has no direct effect on actual system use and trust has no positive effect on behavioural intention to adopt the system. This study shows that despite the implementation of this policy, a lot of users are still being faced with various challenges and more efforts are still being required to achieve an effective cashless society.

Effects of Cashless Economy Policy on National Development: Evidence from Nigeria

Prior to this time, Nigeria economy was largely described as cash and paper based economy with significant proportion of the narrow money stock in form of currency outside the banking system. In a bid to drive national development, modernization of payment system and to limit the practice of the use of cash in business transaction in line with the global economy, the Central Bank of Nigeria introduced the cashless policy in January 2012 as a pilot scheme in Lagos. Since the declaration of cashless policy, there has been controversy in the academia with respect to the effects on national development some scholars believes it benefits outweigh it challenges and vice versa. Based on this therefore, this study seeks to assess the effects of cashless economy policy on national development in Nigeria. The study reveals cashless policy has promoted effective and improved monetary policy, efficient and fast payment system, job creations and increased technological infrastructures. The study suggests that government should promote efforts that will encourage cashless policy in Nigeria.

A Queuing Model for Determining the Optimal-Mix of ATMs AND POS terminals in a Commercial Bank: An Implication to the Cash-less Policy in Nigeria

A Queuing Model for Determining the Optimal-Mix of ATMs AND POS terminals in a Commercial Bank: An Implication to the Cash-less Policy in Nigeria

Appraisal of Cashless Policy on the Nigerian Financial System

The Central Bank of Nigeria (CBN) has been active in the inauguration of policies and schemes to foster the implementation of the cashless policy in Nigeria. However the current transition to cashless economy raises a lot of concerns with no substantial evidence yet to justify its implementation. This study was carried out in order to appraise the implementation of the cashless policy since its introduction into the Nigerian financial system in 2012 and also to examine the persistent challenges facing its implementation. In view of the above stated objective, primary data were collected with the aid of the questionnaire, which was randomly administered to 120 respondents ranging from First Bank, Zenith Bank and United Bank for Africa. The banks were selected based on their total assets and the information collected covered the activities of the CBN and that of these banks towards implementation of the cashless policy from 2012 till date.The data collected were presented and analyzed with the aid of the Statistical Package for Social Sciences (SPSS) using descriptive statistics and one-sample t-test. The results led to the conclusion that despite the need to operate cashless transactions dominating the modern Nigerian economy, the cashless policy will have the desired impact only if a lot is done to ensure the implementation of an effective cashless system.

An Historical Overview of the New Cashless Policy in Nigeria

The most recent and ongoing development in the annals of monetary history in Nigeria is cashless policy which preparation began in 2010, but came on board on a pilot scheme for the first time on 1 st April, 2012. Although the policy can be regarded as a new stage and dimension of imperialism that tries to turn the whole world into global village in terms of financial transactions, if successfully adopted nationwide, it has the tendency of becoming a turning point in the history of not only currency in the country, but also the entire economy from cash oriented to a cashless one. It should however be noted that before the introduction of the policy, certain systems which provided an enabling environment for its take up were adopted by both banking sector and government in Nigeria. These are electronic banking (e-banking) and electronic payments (e-payments). The aim of this paper is to assess the journey so far, pertaining to the introduction and gradual spread of the new cashless policy in Nigeria. The paper first of all discusses the concept of cashless policy as well as adoption of e-banking and e-payment systems, which provided fertile ground for the eventual introduction and spread of the cashless policy. Benefits derivable from the policy as well as problems and challenges facing it are also examined.