The effect of cashless policy on financial institutions and E-business in Nigeria
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Date
2014
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Management Sciences, University of Ilorin.
Abstract
Cash has being the major mode of payment in Nigeria and this has made Nigeria to
become a heavily cash-based economy and thus lead to high rate of robbery; high cost of printing cash as well as high cost of holding cash. As shown by statistics, the cost of cash management in Nigeria in 2009 was N114.5 billion which was projected to stand at 200 billion in 2020. This lead to the introduction of cash-less economic policy in Nigerian in 2011 but commenced operation on April 1, 2012. However, there has been much speculation, debate as well as discussion about the challenges that may hinder the successful implementation of the policy in terms of political and economic instability, security issues and high rate of illiteracy in the country. This study therefore adopted a descriptive analysis to review the effects of cashless policy on financial institutions and e-business in Nigeria. Some recommendations were made which include the collaboration between CBN and the National Assembly to enact proper legislation that would make the policy effective; and that ATMs, POS systems and other mediums should be expanded to touch at least 40 percent of the whole economy.
Description
Keywords
Central Bank of Nigeria, Cash-less Policy, Electronic Banking, E-business and Financial institutions
Citation
Sofoluwe, A. O., Oduwaiye, R. O., Kayode, D. J., Ogbudinkpa, I. C. & Shittu, A. A. (2014). The effect of cashless policy on financial institutions and E-business in Nigeria. Ilorin Journal of Management Sciences, 1(1), 183-196.