Cashless Policy and Performance of Banks in Nigeria
July 14, 2023
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This study looks into the connection between Nigerian banks' performance and their cashless policy. Checks, credit/debit cards, and NEFT were used as stand-ins, and profitability was used as a performance indicator, in order to analyse the synergy between Nigerian banks' performance and their cashless strategy. The study adopted quasi-experimental research design using cross-sectional research design. The population of this study comprised of 10 selected banks in South-South State, Nigeria. 100 copies of questionnaire distributed to top managers of these selected banks. The Multiple Regression Analysis Statistical tool was used with the aid of Statistical Package for Social Sciences (SPSS version 23.0), discriminant validity (AVE) and Cronbach Alpha verified the internal consistency and validity status and the results were positive. The findings of the study showed that cashless policy substantially related with performance of banks in Nigeria, thus enhancing profitability. Based on the findings, the study, recommends that, Making use of cheques, funds transfers, E –payments and owning/ operating of bank accounts should be encouraged. This will give a further boost to the enrichment of our payment system in Nigeria.
Nene Wilson-Amadi, & Emeka J. Okereke. (2023). Cashless Policy and Performance of Banks in Nigeria. International Journal on Economics, Finance and Sustainable Development, 5(7), 49–64. https://doi.org/10.31149/ijefsd.v5i7.4607
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4. Ajayi, M. (2006). Banking sector reforms and banking consolidation: conceptual framework,Bullion, 29(2), 60-74
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6. Akhalumeh. P. B. & Ohiokha, F. (2012). Nigeria’s cashless economy: The imperatives,International Journal of Management and Business Studies, 2(2), 31-36
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11. Ayo, C. K.., Adewoye, J. O., & Oni A. A (2019). The state of e-banking implementation in Nigeria: A post-consolidation review. Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 1(1), 37-45.
12. Carow, K. A. & Staten, M. E. (2000). Plastic choices: Consumer usage of bank cards Vs proprietary credit cards.a Working Study.
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18. Ejoh, N. O., Adebisi, A. W. & Okpa, I. B. (2017). Information and communication technology- an indispensable tool for the implementation of cash-less policy in Nigeria. International Journal of Economics, Commerce and Management, 11(10), 1-18.
19. Elechi, A. C.& Rufus, A. (2016).Cashless policy in Nigeria and its socio-economic impacts, Public Policy and administration Research, 6(10).www.iiste.org
20. Emegwu, C. & Emeti, E. (2015).Integrating cashless economicpolicy in Nigeria: Challenges and prospects.InternationalJournal of Business and Behavioural Sciences, 3(5), 18 –32.
21. Ewa, K.E & Inah, E. U. (2016). Evaluating Nigeria cashless policy implementation. InternationalJournal of Business and Social Research, 6(5).
22. Ezuwore- Obodoekwe, C. N., Eyisi, A.S, Emengini, S.E. & Alio, F. C. (2014). Acritical analysis ofcashless banking policy in Nigeria. IOSR Journal of Business and Management, 16(5), 30-42.
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24. Herciu, M. (2017).Drivers of firm performance: exploring quantitative and qualitative approaches, Studies in Business and Economics, 12(1), 79-84
25. Humphrey, D. B. (2004). Replacement of cash by cards in U.S. consumer payments, Journal of Economics andBusiness, 56, 211–225.
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27. Igbinosa, S. O. & Ogbeide, S.O.(2016). Banking sectordevelopment and performance of the Nigerian economy.International Journal of Management Science Research,1(1), 1-12.
28. Jatau, V. S.& Dung, K. L. (2014). The CBN’s cashless policy: A major panacea for eliminating corruption and enhancing sustainable development in Nigeria, african research review, An International Multidisciplinary Journal, Ethiopia,8(4), 35-49
29. Lamikanra, B. (2019). Managing the transition to a cashless economy in Nigeria: The challenges and strategies. Journal of Accounting and Management,15(2), 20-31.
30. Muotolu, P. C., Nwadialor, E. O. (2019). Cashlesspolicy and financial performance of deposit money banks in Nigeria. International Journal of Trend in Scientific Research and Development (IJTSRD), 3(4),465-476,
31. Nwani, J. J., Nwaimo, C. E., Kanu, S. I. & Chinonso, K. E. (2020). Cashless policy and the nigerian payment system.International Journal of Innovation and Economic Development, 5(6), 7-29
32. Nwankwo, O. & Eze, O. R. (2018). Electronic payment in cashless economy of Nigeria: problems and prospect. Journal of Management Research, 5(1), 138- 151.
33. Nweke, F. (2019). The vision of cash-less economy. Delivered at the J-K Gadzama & Partners LLP 2019 Annual Public Lecture.
34. Nweze, C. (2015). Electronic banking: Little gains, more pains. Nigerian Journal of Computing & ICT, 5(5), 149-152.
35. Odior, S. E. & Banuso, B. F. (2012). Cashless banking in Nigeria: Challenges, benefits and policy implication, European Scientific Journal, 8(12), retrieved fromeujournal.org/index.php/esj/article/view/192
36. Okey, O. O. (2012). The CBN’s cashless policy in Nigeria: Benefits and challenges, Journal of Economics and Sustainable Development, 3(14), 128-133.
37. Okoye, P. V. C., & Ezejiofor, R. (2018). An appraisal of cashless economy policy in development of Nigerian economy. Research Journal of Finance and Accounting. 4(7), 237-252.
38. Omotunde, M., Sunday, T. & John-Dewole, A.T. (2013). Impact of cashless economy in Nigeria.Greener Journal of Internet, Information and Communication Systems, 1(2), 40-43.
39. Osazevbaru, H. O & Yomere, G. O. (2015).Benefits and challenges of Nigeria’s cash-less policy. Kuwait Chapter of Arabian Journal of Business and Management Review, 4(9), 1-10
40. Osazevbaru, H.O.,Sakpaide, E. J. & Ibubune. R.O. (2014). Cashless policy and banks’profitability in Nigeria.European Journal of Accounting, Auditing and Finance Research, 2(10), 1-12
41. Ovat, O. O. (2017). The CBN’s cashless policy in Nigeria: Benefits and challenges. Journal of Economics and Sustainable Development,3(14),128-133.
42. Sbârcea, L. R., (2017).Credit risk versus performance in the Romanian banking sector, Studies in Business and Economics, 12(3), 171-180
43. Singh, A. M. (2016). The effectiveness of internet marketing: A management and consumer perspective. Unpublished doctoral thesis, University of Durban-Westville, Durban, 2016.
44. Sunday, O. (2018). Facing the home truth of cashless policy, IT & Telecom digest. International Journal of Economics, Business and Management, 2(7), 11-19.
45. Taiwo, J.N., Ayo, K. O., Afieroho, E.& Agwu, M. (2017).Appraisal of cashless policy on the Nigerian financial system, Department of Banking & Finance, Covenant University, Ota.
46. Umanhonlen, Umanhonlen, & Omoruyi (2015).Appraisal of the Impact of e-banking andcashless society in the Nigerianeconomy. Management and Economics Research Journal,1(3), 34–45
47. Yaqub, J.O., Bello, H. T., Adenuga, I. A. & Ogundeji, M. O. (2013). The Cashless policy inNigeria: Prospect and challenges.International Journal of Humanities and Social Science, 3(3), 200-212.
2. Adewale, A.A. (2019). Evaluating the systemic transition to a cashless economy in Nigeria. Social Science Research Network. Social Science Electronic Publishing.
3. Adurayemi, A. C. (2016). cashless policy and its effect on the Nigerian economy, European Journal of Business, Economics and Accountancy, 4(2), Progressive Academic Publishing, UK. www.idpublications.org
4. Ajayi, M. (2006). Banking sector reforms and banking consolidation: conceptual framework,Bullion, 29(2), 60-74
5. Ajayi, S. I., & Ojo, O. O. (2016). Money and banking: Analysis and policy in the Nigerian context. Daily Graphics.
6. Akhalumeh. P. B. & Ohiokha, F. (2012). Nigeria’s cashless economy: The imperatives,International Journal of Management and Business Studies, 2(2), 31-36
7. Akintayo D. I., Shadare, O. A., Ayantunji, I. O. & Olaniyan, T. S. (2020).Impact of cashless policy on organizational performance in national control center Osogbo, Osun State, Nigeria.
8. Alao, A. P (2019). Definition of customer satisfaction, academy of marketing science review, Journal of Economics and Sustainable Development, 3(14), 67-73.
9. Amedu, U. M. (2018). Domestic electronic payment in Nigeria: The challenges. CBN bullion, 2(10), 17-19.
10. Atanda, A. A., & Alimi, O. Y. (2018). Anatomy of cashless banking in Nigeria. Centre for Management, Development & Policy Modelling (CMDPM), 1-20.
11. Ayo, C. K.., Adewoye, J. O., & Oni A. A (2019). The state of e-banking implementation in Nigeria: A post-consolidation review. Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 1(1), 37-45.
12. Carow, K. A. & Staten, M. E. (2000). Plastic choices: Consumer usage of bank cards Vs proprietary credit cards.a Working Study.
13. Carroll, A. B. (2004).Managing ethically with global stakeholders: A present and future challenge, The Academy of Management Executive, 18(2), 114-120
14. CBN, (2011). Guidelines on Point of Sales (POS) card acceptance services, retrieved from www.cenbank.org
15. CBN, (2011). New cash policy, retrieved from www.cenbank.org
16. CBN, (2012). Toward a cashless Nigeria: Tool and strategies, retrievedfrom www.ncs.org.ng/wpcontent/uploads/2012/08/cashless2012-4.pdf
17. Ejiro, O. (2012). What Nigerians think of thecashless economy policy. Nigerian Journal of Economy, 4(6), 97–102.
18. Ejoh, N. O., Adebisi, A. W. & Okpa, I. B. (2017). Information and communication technology- an indispensable tool for the implementation of cash-less policy in Nigeria. International Journal of Economics, Commerce and Management, 11(10), 1-18.
19. Elechi, A. C.& Rufus, A. (2016).Cashless policy in Nigeria and its socio-economic impacts, Public Policy and administration Research, 6(10).www.iiste.org
20. Emegwu, C. & Emeti, E. (2015).Integrating cashless economicpolicy in Nigeria: Challenges and prospects.InternationalJournal of Business and Behavioural Sciences, 3(5), 18 –32.
21. Ewa, K.E & Inah, E. U. (2016). Evaluating Nigeria cashless policy implementation. InternationalJournal of Business and Social Research, 6(5).
22. Ezuwore- Obodoekwe, C. N., Eyisi, A.S, Emengini, S.E. & Alio, F. C. (2014). Acritical analysis ofcashless banking policy in Nigeria. IOSR Journal of Business and Management, 16(5), 30-42.
23. Galbraith,J. W. &Tkacz. G. (2015). Now casting GDP with electronic payments data. European Central Bank.Statistics papers series. No.10/August.
24. Herciu, M. (2017).Drivers of firm performance: exploring quantitative and qualitative approaches, Studies in Business and Economics, 12(1), 79-84
25. Humphrey, D. B. (2004). Replacement of cash by cards in U.S. consumer payments, Journal of Economics andBusiness, 56, 211–225.
26. Humphrey, D. B. (2017). Replacement of cash by cards in U.S. consumer payments, Journal of Economics and Business, 8(56), 211–225.
27. Igbinosa, S. O. & Ogbeide, S.O.(2016). Banking sectordevelopment and performance of the Nigerian economy.International Journal of Management Science Research,1(1), 1-12.
28. Jatau, V. S.& Dung, K. L. (2014). The CBN’s cashless policy: A major panacea for eliminating corruption and enhancing sustainable development in Nigeria, african research review, An International Multidisciplinary Journal, Ethiopia,8(4), 35-49
29. Lamikanra, B. (2019). Managing the transition to a cashless economy in Nigeria: The challenges and strategies. Journal of Accounting and Management,15(2), 20-31.
30. Muotolu, P. C., Nwadialor, E. O. (2019). Cashlesspolicy and financial performance of deposit money banks in Nigeria. International Journal of Trend in Scientific Research and Development (IJTSRD), 3(4),465-476,
31. Nwani, J. J., Nwaimo, C. E., Kanu, S. I. & Chinonso, K. E. (2020). Cashless policy and the nigerian payment system.International Journal of Innovation and Economic Development, 5(6), 7-29
32. Nwankwo, O. & Eze, O. R. (2018). Electronic payment in cashless economy of Nigeria: problems and prospect. Journal of Management Research, 5(1), 138- 151.
33. Nweke, F. (2019). The vision of cash-less economy. Delivered at the J-K Gadzama & Partners LLP 2019 Annual Public Lecture.
34. Nweze, C. (2015). Electronic banking: Little gains, more pains. Nigerian Journal of Computing & ICT, 5(5), 149-152.
35. Odior, S. E. & Banuso, B. F. (2012). Cashless banking in Nigeria: Challenges, benefits and policy implication, European Scientific Journal, 8(12), retrieved fromeujournal.org/index.php/esj/article/view/192
36. Okey, O. O. (2012). The CBN’s cashless policy in Nigeria: Benefits and challenges, Journal of Economics and Sustainable Development, 3(14), 128-133.
37. Okoye, P. V. C., & Ezejiofor, R. (2018). An appraisal of cashless economy policy in development of Nigerian economy. Research Journal of Finance and Accounting. 4(7), 237-252.
38. Omotunde, M., Sunday, T. & John-Dewole, A.T. (2013). Impact of cashless economy in Nigeria.Greener Journal of Internet, Information and Communication Systems, 1(2), 40-43.
39. Osazevbaru, H. O & Yomere, G. O. (2015).Benefits and challenges of Nigeria’s cash-less policy. Kuwait Chapter of Arabian Journal of Business and Management Review, 4(9), 1-10
40. Osazevbaru, H.O.,Sakpaide, E. J. & Ibubune. R.O. (2014). Cashless policy and banks’profitability in Nigeria.European Journal of Accounting, Auditing and Finance Research, 2(10), 1-12
41. Ovat, O. O. (2017). The CBN’s cashless policy in Nigeria: Benefits and challenges. Journal of Economics and Sustainable Development,3(14),128-133.
42. Sbârcea, L. R., (2017).Credit risk versus performance in the Romanian banking sector, Studies in Business and Economics, 12(3), 171-180
43. Singh, A. M. (2016). The effectiveness of internet marketing: A management and consumer perspective. Unpublished doctoral thesis, University of Durban-Westville, Durban, 2016.
44. Sunday, O. (2018). Facing the home truth of cashless policy, IT & Telecom digest. International Journal of Economics, Business and Management, 2(7), 11-19.
45. Taiwo, J.N., Ayo, K. O., Afieroho, E.& Agwu, M. (2017).Appraisal of cashless policy on the Nigerian financial system, Department of Banking & Finance, Covenant University, Ota.
46. Umanhonlen, Umanhonlen, & Omoruyi (2015).Appraisal of the Impact of e-banking andcashless society in the Nigerianeconomy. Management and Economics Research Journal,1(3), 34–45
47. Yaqub, J.O., Bello, H. T., Adenuga, I. A. & Ogundeji, M. O. (2013). The Cashless policy inNigeria: Prospect and challenges.International Journal of Humanities and Social Science, 3(3), 200-212.
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