Int. J. of Electronic Finance   »   2016 Vol.9, No.1



Title: Cash-less policy and economic growth: evidence from Nigeria


Author: Ismaila Yusuf


Address: Department of Accounting, Federal University Dutsin-Ma, P.M.B. 5001 Dutsin-Ma, Katsina State, Nigeria


Abstract: The introduction of Central Bank of Nigeria (CBN) Cash-less policy is expected to stimulate economic growth through modernisation of the payment system, reduction in cost of credit as well as improving the effectiveness of monetary policy. Economic growth and cash-less policy are examined in a causal relationship, adopting longitudinal data for non-cash-based banking before the cash-less policy and its impact on economic growth and non-cash-based banking after cash-less policy and its impact on economic growth. Ordinary least-squares multiple regression models were adopted for the study. To test for the impact of CBN cash-less policy on economic growth, we used the Chow (1960) test of structural change. The study found that cheque, point of sale (POS), web and mobile payments as an alternative to cash payments contribute significantly to economic growth. However, their contribution is more evidenced before the introduction of CBN cash-less policy than after the introduction. This may be as a result of the slow rate of growth in the economy stemming from the depreciation of the Naira and falling oil prices.


Keywords: cash-less; cashless; economic growth; electronic banking; endogenous theory of growth; theory of reason; unified theory of acceptance and use of technology.


DOI: 10.1504/IJEF.2016.10004208


Int. J. of Electronic Finance, 2016 Vol.9, No.1, pp.63 - 71


Submission date: 14 Aug 2016
Date of acceptance: 17 Feb 2017
Available online: 07 Apr 2017



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