Financial Illiteracy and Cashless System in Nigeria

Abstract

Despite the huge effort of  Central Bank of Nigeria (CBN) to make cashless economic policy system which was, in no doubt, an instrumental tool designed for the development and growth of the Nigerian economy, there is still much problem of financial illiteracy facing the masses of country on this issue. This paper therefore, examined how financial literacy affects the cashless system in Nigeria since its origin, using Lagos State as a case study. The study employed survey method. Questionnaires were administered to 400 participants. Descriptive statistics was used in analysing the data. The Chi-square and the F-distribution done with the stipulations of ANOVA and SPSS showed that the impact of financial illiteracy on the cashless policy system is significant on the Nigerian economy. Hence, the study recommended that CBN increases mass education/enlightenment on finance management so that people can achieve the most from the latest development in the cashless system.

Key words: Financial Illiteracy, Cashless System, Nigerian Economy, ATM, POS