Cashless Policy and Economic Growth of Nigeria

ABSTRACT This study investigated the relationship between cashless policy and economic growth in Nigeria using quarterly series data between periods of 2009 to 2022. The study proxied gross domestic product as the dependent variable while automated teller machine transactions, point of sales transactions and mobile banking transactions served as the independent variables. The Central Bank of Nigeria statistical bulletin served as the primary data source for this study. The study used quarterly data and the analysis employed is the ordinary least squares for statistical analysis. The result reveals that automated teller machine transaction exhibited a negative and insignificant impact on gross domestic product , indicating a lack of substantial impact on economic growth. In contrast, point of sale transactions has a positive and significant impact on gross domestic product, implying that the utilization of point on sale terminals correlates with heightened economic growth. While, mobile banking transactions has a positive and insignificant impact on gross domestic product. The study thus concluded that automated teller machine and mobile banking transaction does not affect Nigeria economic growth, while point of sale has an affect Nigeria economic growth. As such, we recommended that banks should encourage the widespread adoption of point on sale systems, especially in retail and business establishments and also implement policies that promote the integration of point on sale infrastructure in both urban and rural areas.