Cashless economy policy in nigeria pdf file

Pdf impact of cashless economy in nigeria researchgate. Download the complete banking and finance project topic and material chapter 15 titled effect of cashless policy on commercial banks profitability in nigeria here on projects. The relationship between electronic cashless policy and. This makes the country to be heavily cash based economy.

Cbn suspends cashless policy, asks banks to refund charges. The study will give various insights into the various implications the introduction of the cashless policy will have on the economy of nigeria. You just need your mobile phone or debit card to make payment these days. Prospects of cashless policy in nigeria convenience. Pdf returns of the cashless policy in nigeria mpho. However the current transition to cashless economy raises a lot of concerns with no substantial evidence yet to justify its implementation. It is in this regard that the central bank of nigeria cbn introduced the cashless policy with the objective of promoting. According to cbn, the new cash policy was introduced for a number of key reasons. In an attempt for nigeria to have sound economy as projected in vision 20. Cashless nigeria the central bank of nigeria cbn has introduced a new policy on cashbased transactions which stipulates a cash handling charge on daily cash withdrawals that exceed n500,000 for individuals and n3,000,000 for corporate bodies. Pdf on oct 1, 2016, ordu monday matthew and others published cashless economic policy in nigeria. In a circular signed by dipo fatokun, director, banking and payments system. Given the policy s objectives, the paper xrayed the associated benefits of the policy. Pdf the central bank of nigeria introduced cashless policy initiative to accomplish two main macrosocioeconomic policy objectives of increased.

This study is poised to investigate and appraise to the best of the researchers ability the impact of the cashless economy policy on nigerian citizens and the economy at large. The statistical evidence provided by central bank of nigeria 2012 revealed that, cash related transactions accounted for 99% of customers activities in nigeria banks as at december, 2011. Full length research article this study examined the effect of cashless monetary policy on nigerian banking. Click the download now button to get the complete project work instantly. Therefore, nigerian banks should utilize the benefits of the cashless policy and engage in efficient financial intermediation for enhanced bank profitability. The impact of central bank of nigeria cashless policy in. Pdf this paper studied the impact of cashless policy in nigeria. Aug 28, 2016 the impact of the cashless policy on economic growth of nigeria. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one.

Since the declaration of cashless economy policy by the central bank of nigeria, many scholars have written on this subject matter. Effect of cashless policy on small and medium business in nigeria. Transaction volume atm withdrawals 109,592,646 cash withdrawals overthe 72,499,812 counter pos point of sale terminals 29,159,960 cheques 1,059,960 web 2,703,516 3. It prescribed a cash handling charges on daily withdrawal above five hundred thousand naira n500,000.

In 2015, the central bank of nigeria issued a notice to all banks that began collecting charges on withdrawals above the threshold in the remaining 30 states. Based on this therefore, this study seeks to assess the effects of cashless economy policy on national development in nigeria. Apr 22, 2017 central bank of nigeria cbn, yesterday, suspended the nationwide implementation of the cashless policy indefinitely. Effect of cashless policy on small and medium business in. Okoye, raymond ezejiofor department of accountancy, nnamdi azikiwe university, p. The impact of the cashless economy policy on nigerian.

The benefits of adoption of cashless economy include reduction in corruption and. As part of our ambition to be one of the best 20 economies before the year 2020, cbn informed the world that nigeria would commence the process of changing to a cashless economy by january 2012. Appraisal of cashless policy on the nigerian financial system. The new policy by central bank of nigeria cbn on cashless system of payment has raised a lot of concern to the growth of nigerian economy, with the objective of reducing robbery, high cost of. The central bank of nigeria cbn has in recent times engaged in series of reformations aimed at both making the nigerian financial system formidable and. In a circular released on friday, the apex bank instructed banks to revert to old. The impact of the cashless policy on economic growth of nigeria. Jul 02, 2019 apr 21, the cbn in february announced its plan to extend the cashless policy to all the remaining states of the federation by oct. This study made use of secondary quarterly annual time series data which was gathered from the central bank of nigeria statistical bulletin and nigerian interbank settlement system nibss from 2009q42018q4. The cashless policy was conceptualized by the apex bank to migrate nigeria s economy from cash based economy to a cashless one through electronic. Nigerias aim to be among the biggest economy by 2020 has driven her to gradually move from a pure cash economy to a cashless policy. An appraisal of cashless economy policy in development of. A cash based economy is a setting where retail and commercial payments are primarily made in cash.

High cash usage results in a lot of money outside the formal economy, thus limiting the effectiveness of monetary policy in managing inflation and encouraging economic growth. Impact of cashless policy on business in nigeria one of the aims of the cashless policy is to work in line with nigerias vision 2020 goal of being among the top 20 economies of the year 2020. The cbn and pro cashless policy activists have asserted reduction in crime rates, minimized risk associated with carrying huge sums of money, reduction in political corruption, reduction in banking cost, improvement on monetary policy in management of inflation and the overall growth and development of the economy of nigeria as advantages. According to cbn 2012 a key reason for the introduction of the cashless policy is to drive development and modernization of nigers payment system in line with nigerias vision 2020 goal of being amongst the top 20 economies by the year 2020. Pdf evaluating nigeria cashless policy implementation. This study when completed will add to the body of knowledge in the area of banking and finance as literature on cashless policy in nigeria is scarce. The central bank of nigeria cbn has been active in the inauguration of policies and schemes to foster the implementation of the cashless policy in nigeria.

It is universally agreed that a safe and efficient national cashless system is essential for sound banking. Analytically, this study employs descriptive statistical to highlightsoverview the effectiveness of the cashless policy of the cbn in nigeria. The policy aims at reducing not eli minating the amount of physical. A cashless economy is an environment in which money is spent without being physically carried from one person to the other. The introduction of the cashless policy in march 2012 aimed to drive development and advance payment systems in nigeria. The impact of central bank of nigeria cashless policy in nigeria economy.

This indicates that businesses and economic transactions cannot be underestimated. This paper dwelt on the meaning of a cashless system, explain information. In june 2014, the central bank of nigeria, while announcing the takeoff of the third and final phase of the cashless policy, said charges on withdrawals for both individual and corporate account. Challenges of cashless policy implementation in nigeria 2. An empirical analysis of the benefits of cashless economy on nigerias economic development, research journal of finance and accounting, 417, 20. The banks were directed to put a hold on these charges until a directive is given by the cbn. Little wonder why the central bank of nigeria recently introduced a. Cashless policy and economic activities in developing. Article history abstract received 10 september, 2014 received in revised form 08 october, 2014 accepted 16 october, 2014 key words. Download this complete banking and finance project material titled. In nigeria as it is in many developing countries, cash is the main mode of payment. The main reason for the policy was to reduce the amount of. The central bank of nigeria introduced cashless policy initiative to accomplish two main macrosocioeconomic policy objectives of increased convenience and greater financial inclusion in nigeria.

Cashless economy, cyber fraud, ebanking, point of sales. This is electronic information transmitted to a device which reveals the information about how much a person has stored in the bank and how much he can spend. This means banking is entirely relying on monetary transactions that use electronic means rather than cash. This study examines the implications of cashless banking, with a view to exposing the possible challenges and prospects it poses to the nigerian economy whilst employing aggregated approach. Nigerias cashless economy international journal of management. Central bank of nigeria the cashless nigeria project. The cashless policy initiative of the central bank of nigeria is a move to i mprove the financial terrain of the economy. Table 1 shows the view of respond ents on benefits of cashless economy in nigeria.

The first issue in the cashless economy is the issue of electronic purse. Effects of cashless economy policy on financial inclusion in nigeria. Cashless policy has significant impact on the economic growth of nigeria. Preface why the central bank of nigeria made the cashless policy. High cash usage enables corruption, leakages and money laundering, amongst other cashrelated fraudulent activities. Cashless policy has no significant impact on economic growth of nigeria.

Theoretical background cashless economy is not the complete absence of cash, it is an economic setting in which goods and services are bought and paid for through electronic media. An analysis of cashless policy implementation in nigeria. Cashless nigeria is a policy established in the year 2012 by the central bank of nigeria to curb excesses in the handling of cash in the nigerian federation. According to cbn, the new cashless policy was introduced for a number of key reasons, including, to drive development and modernization of our payment system in line with nigerias vision 2020 goal of being amongst the top 20 economies by the year 2020. In addition, the policy aimed to reduce costs related to banking and facilitate the progression of monetary policy decisions and. The cashless policy makes the process of payment seamless hence there would no longer be the need to move large sums in expensive highlevel security vehicles. Further, appropriate infrastructures such as improvement on the power sector should be made to enhance the smooth operation of the policy. Jul 04, 20 an appraisal of cashless economy policy in development of nigerian economy 1.

Relative rationale and impact of a cashless economy 2. Nigeria abstract the paper discussed the effects of cashless policy on the nigerian economy, how it was kickstarted in lagos, means of payments both manual and electronic, positive and negative effects of cashless policy, benefits to the economy and stakeholders, suggestions were made. Effect of cashless monetary policy on nigerian banking. Effect of cashless policy on commercial banks profitability. Cbn suspends nationwide implementation of cashless policy. This research is embarked upon to assess the pre and postimplementation period of nigerias clp with focus on the relationships between tools of clp and currency outside banks in the nigerian economy. Empirical assessment of the effects of cashless policy on. Effect of cashless policy on small and medium business in nigeria with abstract, chapter 15, references and questionnaire. In this connection, more studies focusing on africa in general and nigeria in particular are warranted. The policy was introduced by central bank of nigeria cbn in december 2011 and was. A cashless economy does not mean the absence of cash. This study examines the relationship between electronic cashless policy and performance of nigeria economy. The central bank of nigeria cbn has suspended its earlier directive on the implementation of cashless policy. The necessary data were collected from the central bank of nigeria economic reports as well as statistical bulletin and the ordinary least squares method was applied to analyze the data.

A critical analysis of cashless banking policy in nigeria oer. Since nigeria gained her independence in1960, there have been different constitutional reforms, change in economic and banking policies mainly aimed at stabilizing the economy, enhancing social welfare and. Pdf effects of cashless economy policy on national development. The paper examined the effect of cbns cashless policy on nigeria economy. Cashless policy could often be affected by physical challenges such as high rate of illiteracy, inadequate sensitizationeducation of the benefits of cashless policy, and inadequate logistics such as the provision of internet connections in commercial areas, computers and point on sale pos machines. The present study examined the effects of cashless policy on financial inclusion in the nigerian emerging economy. Apr 21, the central bank of nigeria cbn has suspended its earlier directive on the implementation of cashless policy.

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