The Impact of Adopting Electronic Banking in Nigeria Economy: Issues and Challenges

Abstract

This study examines the “impact of adopting electronic system of banking in Nigeria on the Economy, using Lagos, Abuja, Abia, Anambra and Port-harcourt as areas of concentration. Thus, the paper x-rays the implication of e- banking with a view of exposing the possible challenges it posses to the Nigeria Economy, while employing aggregated approach. Analytically, this study will employ descriptive statistics to highlight or overview the effectiveness of the electronic banking policy of the Central Bank of Nigeria. The study was informed by the doubts as regards the effectiveness of various economic policies achieving developmental goals of Nigeria. Therein, the recent evolution of electronic money poses interesting questions for policy makers all over the world. This work also seeks to evaluate the policies of the Central Bank of Nigeria as well as to proffer valuable recommendations on the execution of e- banking initiative in Nigeria. The study presents significant recommendations such as availability of sufficient and well functioning infrastructural facilities (notably electricity), harmonization of fiscal and monetary policy, regular assessment of the performance of electronic banking channels individually and collectively; consideration of the present state and structure of the economy; redesigning of the monetary policy framework towards economic growth, whilst managing inflation. In conclusion, the shift towards e-banking in Nigeria seems to be beneficial though, it comes with high level of concern over security and management of cost savings resulting from its implementation.

Keywords:  Electronic Banking, Monetary policy , Developmental Goals and Economic growth.