The Relationship Between Electronic Cashless Policy and Performance of Nigeria Economy

Abstract

This study examines the relationship between electronic cashless policy and performance of Nigeria economy. This study made use of secondary quarterly annual time series data which was gathered from the Central Bank of Nigeria statistical bulletin and Nigerian Inter-Bank Settlement System (NIBSS) from (2009Q4-2018Q4). The study made use of descriptive statistics, unit root test, heteroskedasticity test, bound co-integration test and auto regressive distribution lag test  in the first model because of the mixed order of stationarity. It was discovered from auto regressive distribution lag test that POS contribute positively to the economy. The study strongly suggests that since POS device do not have any option for biometric recognition,  there is a need for financial institution to incorporate bio-metric recognition in POS machines, buttressing this point there is need for any POS transaction to be validated by the owner of the account via USSD code sent to the account holders’ phone or any other form of authentication before POS can validate any transaction.

Keywords: Electronic, Payment System, ATM, POS, Short Message Service.

DOI: 10.7176/RJFA/11-4-10

Publication date: February 29^th 2020