The effect of electronic payment systems on economic growth in Nigeria: evidence from 2010 to 2023
Abstract
The effect of electronic payment systems on economic growth in Nigeria was investigated in this study using secondary data obtained from the CBN Statistical Database and NBS for the years 2010q1–Q4 to 2023q1–Q4. The impact of the transaction values of ATM, Mobilepay, POS, and Webpay on Nigeria's real GDP was specifically examined. The work used descriptive statistics and ARDL technique; and adopted an ex-post facto research design. ATM, Mobilepay, and Webpay were found to have positive and significant effects on real GDP in the short and long-term, with coefficient values of 0.26, 0.18, and 0.15 and p-values of 0.0000, 0.0482, and 0.0008 respectively, as opposed to POS, which showed a negative and significant effect on real GDP with a coefficient of -0.07 at a p-value of 0.0137. According to the study's findings, Webpay, Mobilepay, and ATM all positively impacted Nigeria's economic expansion while POS Payment System had a negative impact on real GDP growth. Given the beneficial effects of ATM use on economic growth, the study suggested that banks should promote and facilitate ATM access and use. Additionally, banks should work to increase cyber security and e-payments trust to maintain the positive effects of Webpay on real GDP.
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Abubakar Sani, I., Aiyedogbon, J., & Obumneke, E. (2024). Electronic Payments System and Banking Industry's Return in Nigeria: A Time-Varying Granger Causality Approach. John and Obumneke, Ezie, Electronic Payments System and Banking Industry's Return in Nigeria: A Time-Varying Granger Causality Approach (February 29, 2024). https://dx.doi.org/10.2139/ssrn.4850767
Khando, K., Islam, M. S., & Gao, S. (2022). The emerging technologies of digital payments and associated challenges: a systematic literature review. Future Internet, 15(1), 21. https://doi.org/10.3390/fi15010021
Adewale, A. (2024). The Impact of Electronic Banking Channels on The Financial Inclusion in Nigeria. Gomal University Journal of Research, 40(4), 425-441. https://doi.org/10.51380/gujr-40-04-03
Adewale, O., Adeyinka, A., & Damilola, O. (2023). Chinese poverty reduction model: a virile tool for achieving poverty reduction in Nigeria by 2030. Jurnal Akuntansi Universitas Jember, 21(1), 18-31. doi:10.19184/jauj.v21i1.37087
Afaha, J. S. (2019). Electronic payment systems (E-payments) and Nigeria economic growth. European Business and Management, 5(6), 77-87. doi: 10.11648/j.ebm.20190506.11
Akan, H. W. (2023). Electronic Payment Systems and The Return on Equity of Quoted Commercial Banks in Nigeria. African Banking and Finance Review Journal, 5(5), 96-114.
Akanni, B. (2020). Impact of Electronic Payment Systems on Nigerian Economic Development. International Journal of Management and Business Studies, 2(2), 31 – 36.
Akintayo, D.I. (2019). Scientific research methods: Theory and Practice. Somerest Publication.
American Psychological Association. (2023). Time-series design. https://dictionary.apa.org/time-series-design
Anuforo, P., Joel, M., Ndirmbitah, B. K., & Maindo, F. (2024). Evaluation Of Nigerian Cashless Payment Policy and Its Impact on Economic Growth: A Synthetic Review. JISEF: Journal Of International Sharia Economics and Financial, 3(01), 22-47. doi: https://doi.org/10.62668/jisef.v3i01.1027
Bank of International Settlement. (2018). The Interdependencies of Payment and Settlement Systems, June 2018. 12(5).
Central Bank of Nigeria. (2022). Industry data by e-payment channels and others for 2021.
Central Bank of Nigeria. (2019). Statistical Bulletin. Statistical Bulletin.
Esperance, M. (2024). Effect of Cashless Financial Services on Economic Growth in Kigali, Rwanda. Valley International Journal Digital Library, 5743-5755.
Gbanador, M. A. (2023). The effect of cashless policy on economic growth in Nigeria: An autoregressive distributed lag approach. Asian Journal of Economics, Business and Accounting, 23(6), 22-31.
Granger, C. W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Journal of the Econometric Society, 424-438.
Granger, C. W. (1988). Some recent development in a concept of causality. Journal of econometrics, 39(1-2), 199-211.
Haruna, I. O., Aidonojie, P. A., & Beida, O. J. (2024). Prospects and Issues Concerning the Regulatory Regime of E-Payment System in Nigeria. Journal of Digital Technologies and Law, 2(2), 372-393.
Henry Chinenye, U., Anyanwu, F. A., & Amakor, I. C. (2024). Impact of Cashless Policy on the Nigerian Economy (2009-2022). African Banking and Finance Review Journal, 9(9), 40-54. doi: https://doi.org/10.21202/jdtl.2024.19
Ikechi, K.S., Chinonso, E.K., Anthony, N. & Eze, I.R. (2020). The Use of E-payment Products and their Impact on Currency-in-Circulation in Nigeria. International Journal of Innovation and Economic Development, 6(1), 31-46.
Ikpefan, O. A., Enobong, A., Osuma, G., Evbuomwan, G. O., & Ndigwe, C. (2018). Electronic banking and cashless policy in Nigeria. International Journal of Civil Engineering and Technology (IJCIET), 9(10), 718-731.
Ireokwu, UN., Amarachi, I.P. & Oluchi, N.L. (2022). Technology-based banking products and Economic growth in Nigeria: An Ardl approach. Journal of Research in Business and Management, 10(7), 23-33.
Isamade, B. A., Udeh, S. N., & Allison, P. (2022). Effect of e-payment systems on gross domestic product of Nigeria. British International Journal of Applied Economics, Finance and Accounting, 6(3), 24-40.
Isibar, T. (2018). The role of accounting information systems in accounting firm, International Journal of Advanced Computer Research, 1(9), 21-31.
Joseph, U. M. (2020). Cashless Policy and Economic Growth: The Nigeria Perspective. Journal of Economics and Finance, 3(7), 85-89.
Liliana, D., & Florina, P. S. (2015). Education, knowledge and innovation from a mechatronics perspective. Procedia-Social and Behavioral Sciences, 203, 205-209. doi: 10.1016/j.sbspro.2015.08.283
Mamudu, Z. U. (2021). Electronic banking payment system and its impact on the Nigerian economy. Journal of Emerging Trends in Economics and Management Sciences, 12(1), 8-26.
Mamudu, Z. U., & Gayovwi, G. O. (2019). Cashless policy and its impact on the Nigerian economy. International Journal of Education and Research, 7(3), 111-132.
Nakajima, M. (2017). Essential Elements of Payment Systems. Journal of Economics and Business Research, 4(June), 1–14.
National Bureau of Statistics (2022). Selected banking sector data (Q1 - Q4 2021).
Nigeria Inter-bank Settlement System. (2022). Electronic payments fact sheet (Jan-Dec 2021).
Nwankwo, C.T., Uguru, L.C. & Chukwu, U.C. (2022). Effect of Electronic Payment System on
Tax Revenue Generation in Nigeria. International Journal of Business and Management Invention, 11(12), 40-49. DOI- 10.35629/8028
Nwakoby, N. P., Okoye, J. N., Ezejiofor, R. A., Anukwu, C. C., & Ihediwa, A. (2020). Electronic banking and profitability: Empirical evidence from selected banks in Nigeria. Journal of Economics and Business, 3(2). DOI: 10.31014/aior.1992.03.02.227
Nwaka-Nwandu, O. C., Patrick, O. U., Obainoke, E. F., & Ugege, J. E. (2024). Assessment of CBN Cashless Policy (Electronic Payment System) on Economic Growth in Nigeria. International Journal of Research and Scientific Innovation, 11(3), 506-521.
Ogunlade, D. A., & Amodu, M. A. (2024). The Influence of the Cashless Policy on Economic Growth and Development. NIU Journal of Social Sciences, 10(1), 39-50. DOI: https://doi.org/10.58709/niujss.v10i1.1788
Onalo, U., Audu, P., & Ugwu, J. I. (2021). Effects Of Electronic Payments Systems on The Economy of Nigeria: A Pre-Covid-19 Era ARDL Analysis. Research Journal of Finance and Accounting, 12(19), 39-50.
Oney, E., Oksuzoglu, G. G., & Rizvi, W. H. (2017). The Determinants of Electronic Payment Systems Usage from Consumers’ Perspective. Economic Research-Ekonomska Istraživanja, 30(01), 394–415. https://doi.org/10.1080/1331677X.2017.1305791
Oyadeyi, O. (2024). Banking innovation, financial inclusion and economic growth in Nigeria. Journal of the Knowledge Economy, 15(2), 7014-7043. https://doi.org/10.3390/economies12080191
Oyewole, O. S., Gambo, J., Abba, M., & Onuh, M. E. (2018). Electronic payment system and economic growth: a review of transition to cashless economy in Nigeria. International Journal of Scientific Engineering and Technology, 2(9), 913-918.
Udeghi, M. & Hanzace, K. (2018). Accounting information and managerial work, Accounting, Organizations and Society, 35(3), 301-315.
Yahaya, O.A. (2022). Electronic Payments System and Economic Growth in Nigeria. International Journal of Management and Economics, 5(20), 45-54.
Abubakar Sani, I., Aiyedogbon, J., & Obumneke, E. (2024). Electronic Payments System and Banking Industry's Return in Nigeria: A Time-Varying Granger Causality Approach. John and Obumneke, Ezie, Electronic Payments System and Banking Industry's Return in Nigeria: A Time-Varying Granger Causality Approach (February 29, 2024). https://dx.doi.org/10.2139/ssrn.4850767
Khando, K., Islam, M. S., & Gao, S. (2022). The emerging technologies of digital payments and associated challenges: a systematic literature review. Future Internet, 15(1), 21. https://doi.org/10.3390/fi15010021
Adewale, A. (2024). The Impact of Electronic Banking Channels on The Financial Inclusion in Nigeria. Gomal University Journal of Research, 40(4), 425-441. https://doi.org/10.51380/gujr-40-04-03
Adewale, O., Adeyinka, A., & Damilola, O. (2023). Chinese poverty reduction model: a virile tool for achieving poverty reduction in Nigeria by 2030. Jurnal Akuntansi Universitas Jember, 21(1), 18-31. doi:10.19184/jauj.v21i1.37087
Afaha, J. S. (2019). Electronic payment systems (E-payments) and Nigeria economic growth. European Business and Management, 5(6), 77-87. doi: 10.11648/j.ebm.20190506.11
Akan, H. W. (2023). Electronic Payment Systems and The Return on Equity of Quoted Commercial Banks in Nigeria. African Banking and Finance Review Journal, 5(5), 96-114.
Akanni, B. (2020). Impact of Electronic Payment Systems on Nigerian Economic Development. International Journal of Management and Business Studies, 2(2), 31 – 36.
Akintayo, D.I. (2019). Scientific research methods: Theory and Practice. Somerest Publication.
American Psychological Association. (2023). Time-series design. https://dictionary.apa.org/time-series-design
Anuforo, P., Joel, M., Ndirmbitah, B. K., & Maindo, F. (2024). Evaluation Of Nigerian Cashless Payment Policy and Its Impact on Economic Growth: A Synthetic Review. JISEF: Journal Of International Sharia Economics and Financial, 3(01), 22-47. doi: https://doi.org/10.62668/jisef.v3i01.1027
Bank of International Settlement. (2018). The Interdependencies of Payment and Settlement Systems, June 2018. 12(5).
Central Bank of Nigeria. (2022). Industry data by e-payment channels and others for 2021.
Central Bank of Nigeria. (2019). Statistical Bulletin. Statistical Bulletin.
Esperance, M. (2024). Effect of Cashless Financial Services on Economic Growth in Kigali, Rwanda. Valley International Journal Digital Library, 5743-5755.
Gbanador, M. A. (2023). The effect of cashless policy on economic growth in Nigeria: An autoregressive distributed lag approach. Asian Journal of Economics, Business and Accounting, 23(6), 22-31.
Granger, C. W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Journal of the Econometric Society, 424-438.
Granger, C. W. (1988). Some recent development in a concept of causality. Journal of econometrics, 39(1-2), 199-211.
Haruna, I. O., Aidonojie, P. A., & Beida, O. J. (2024). Prospects and Issues Concerning the Regulatory Regime of E-Payment System in Nigeria. Journal of Digital Technologies and Law, 2(2), 372-393.
Henry Chinenye, U., Anyanwu, F. A., & Amakor, I. C. (2024). Impact of Cashless Policy on the Nigerian Economy (2009-2022). African Banking and Finance Review Journal, 9(9), 40-54. doi: https://doi.org/10.21202/jdtl.2024.19
Ikechi, K.S., Chinonso, E.K., Anthony, N. & Eze, I.R. (2020). The Use of E-payment Products and their Impact on Currency-in-Circulation in Nigeria. International Journal of Innovation and Economic Development, 6(1), 31-46.
Ikpefan, O. A., Enobong, A., Osuma, G., Evbuomwan, G. O., & Ndigwe, C. (2018). Electronic banking and cashless policy in Nigeria. International Journal of Civil Engineering and Technology (IJCIET), 9(10), 718-731.
Ireokwu, UN., Amarachi, I.P. & Oluchi, N.L. (2022). Technology-based banking products and Economic growth in Nigeria: An Ardl approach. Journal of Research in Business and Management, 10(7), 23-33.
Isamade, B. A., Udeh, S. N., & Allison, P. (2022). Effect of e-payment systems on gross domestic product of Nigeria. British International Journal of Applied Economics, Finance and Accounting, 6(3), 24-40.
Isibar, T. (2018). The role of accounting information systems in accounting firm, International Journal of Advanced Computer Research, 1(9), 21-31.
Joseph, U. M. (2020). Cashless Policy and Economic Growth: The Nigeria Perspective. Journal of Economics and Finance, 3(7), 85-89.
Liliana, D., & Florina, P. S. (2015). Education, knowledge and innovation from a mechatronics perspective. Procedia-Social and Behavioral Sciences, 203, 205-209. doi: 10.1016/j.sbspro.2015.08.283
Mamudu, Z. U. (2021). Electronic banking payment system and its impact on the Nigerian economy. Journal of Emerging Trends in Economics and Management Sciences, 12(1), 8-26.
Mamudu, Z. U., & Gayovwi, G. O. (2019). Cashless policy and its impact on the Nigerian economy. International Journal of Education and Research, 7(3), 111-132.
Nakajima, M. (2017). Essential Elements of Payment Systems. Journal of Economics and Business Research, 4(June), 1–14.
National Bureau of Statistics (2022). Selected banking sector data (Q1 - Q4 2021).
Nigeria Inter-bank Settlement System. (2022). Electronic payments fact sheet (Jan-Dec 2021).
Nwankwo, C.T., Uguru, L.C. & Chukwu, U.C. (2022). Effect of Electronic Payment System on
Tax Revenue Generation in Nigeria. International Journal of Business and Management Invention, 11(12), 40-49. DOI- 10.35629/8028
Nwakoby, N. P., Okoye, J. N., Ezejiofor, R. A., Anukwu, C. C., & Ihediwa, A. (2020). Electronic banking and profitability: Empirical evidence from selected banks in Nigeria. Journal of Economics and Business, 3(2). DOI: 10.31014/aior.1992.03.02.227
Nwaka-Nwandu, O. C., Patrick, O. U., Obainoke, E. F., & Ugege, J. E. (2024). Assessment of CBN Cashless Policy (Electronic Payment System) on Economic Growth in Nigeria. International Journal of Research and Scientific Innovation, 11(3), 506-521.
Ogunlade, D. A., & Amodu, M. A. (2024). The Influence of the Cashless Policy on Economic Growth and Development. NIU Journal of Social Sciences, 10(1), 39-50. DOI: https://doi.org/10.58709/niujss.v10i1.1788
Onalo, U., Audu, P., & Ugwu, J. I. (2021). Effects Of Electronic Payments Systems on The Economy of Nigeria: A Pre-Covid-19 Era ARDL Analysis. Research Journal of Finance and Accounting, 12(19), 39-50.
Oney, E., Oksuzoglu, G. G., & Rizvi, W. H. (2017). The Determinants of Electronic Payment Systems Usage from Consumers’ Perspective. Economic Research-Ekonomska Istraživanja, 30(01), 394–415. https://doi.org/10.1080/1331677X.2017.1305791
Oyadeyi, O. (2024). Banking innovation, financial inclusion and economic growth in Nigeria. Journal of the Knowledge Economy, 15(2), 7014-7043. https://doi.org/10.3390/economies12080191
Oyewole, O. S., Gambo, J., Abba, M., & Onuh, M. E. (2018). Electronic payment system and economic growth: a review of transition to cashless economy in Nigeria. International Journal of Scientific Engineering and Technology, 2(9), 913-918.
Udeghi, M. & Hanzace, K. (2018). Accounting information and managerial work, Accounting, Organizations and Society, 35(3), 301-315.
Yahaya, O.A. (2022). Electronic Payments System and Economic Growth in Nigeria. International Journal of Management and Economics, 5(20), 45-54.
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