Mandatory adoption of the Central Bank of Nigeria’s cashless and e-payment policy: implications for bank customers
-
DOIhttp://dx.doi.org/10.21511/bbs.15(2).2020.21
-
Article InfoVolume 15 2020, Issue #2, pp. 243-253
- Cited by
- 954 Views
-
313 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study seeks to uncover the projected gains and challenges of a cashless and e-payment policy in Nigeria, with particular emphasis on the wellbeing of bank clients, and to examine the extent to which the promised benefits of the policy were realized eight years down the line of implementation. Researchers provided copies of a research questionnaire to selected bankers and bank customers in Ogun and Lagos states of Nigeria to find perceptions of the two stakeholder groups regarding the subject matter. Three hypotheses formulated were tested using ANOVA. The paper reveals that the cashless banking initiative in Nigeria has significantly enhanced bank customer satisfaction; the implementation of the cashless banking structure in Nigeria has not led to a significant reduction in the level of cash fraud in Nigerian banks; and the adoption of a cashless economy practice in Nigeria has significantly improved the management of bank customer funds in terms of spending and saving. The paper, in particular, recommends that bank regulators constantly and widely cooperate with all key stakeholders in the system in the fight against cybercrime. This will make the electronic space safe and reliable for use in doing banking in Nigeria and beyond.
Acknowledgment
The authors wish to acknowledge Covenant University for its financial support during the work on this paper.
- Keywords
-
JEL Classification (Paper profile tab)E58, E59
-
References45
-
Tables4
-
Figures0
-
- Table 1. ANOVA test for H1
- Table 2. ANOVA test for H2
- Table 3. ANOVA test for H3
- Table A1. Frequency distribution of indicators
-
- Adekoya, F. (2011, June 22). Cashless Economy: The Many Hurdles before CBN. The Guardian.
- Adetula, D. T. (2016). Financial Accounting Numbers and the Emerging Nigerian Stock Market. The Social Sciences, 11(14), 3434-3439.
- Adeyemo, K. A. (2012). Frauds in Nigerian Banks: Nature, Deep-Seated Causes, Aftermaths and Probable Remedies. Mediterranean Journal of Social Sciences, 3(2), 279-289.
- Adeyemo, K. A., Isiavwe, D, Adetiloye, K. A., & Eriabie, S. (2017). Financial Reports and Shareholders’ Decision Making in Nigeria: Any Connectedness? Journal of Internet Banking and Commerce, 22(8), 1-14.
- Akan, P. (1995). Dimensions of service quality: A study in Istanbul. Managing Service Quality: An International Journal, 5(6), 39-43.
- Akano, S. (2012). Cashless transactions: platforms, challenges and opportunities. Conference at the computer professionals registration council of Nigeria.
- Akhalumeh. P. B., & Ohiokha, F. (2012). Nigeria’s cashless economy: the Imperatives. International Journal of Management and Business Studies, 2(2), 31-36.
- Atarere, O. L., & Osemwegie-Ero, O. J. (2014). Cashless banking and small and medium scale enterprises growth in Nigeria. International Journal of Innovative Social Sciences & Humanities Research, 2(2), 98-105.
- Atkinson, A. (1988). Answering the eternal question: What does the Customer Want? The Cornell Hotel and Restaurant Administration Quarterly, 29(2), 12-14.
- Central Bank of Nigeria (CBN). (2003). Report of Technical Committee on Electronic Banking. Abuja: CBN.
- Eboh, M. (2011, October 6). Cashless economy policy’ll save Nigeria N192 Billion – CBN. Vanguard Nigeria.
- Ejiro, O. (2012). What Nigerians Think of the Cashless Economy Policy. Nigerian Journal of Economy, 4(6), 97-102.
- Ekpung, G. E., Udude, C. C., & Uwalaka, H. I. (2015). The impact of monetary policy on the banking sector in Nigeria. International Journal of Economics, Commerce and Management, 3(5), 1015-1031.
- Eniang-Esien, O., & Ekpe, M. D. (2019). CBN Cashless Policy Implementation as Predictor of Sustainable Administration of Higher Education in South-South Nigeria: Implication from Management Perspective. Global Scientific Journal, 7(12), 1515-1530.
- Ezumba, S. (2011). The Transition to a Cashless Nigeria (Chronicle). Reinventing Rebuilding LLC.
- Ezuwore-Obodoekwe, C. N, Eyisi, A. S., Emengini, S. E., & Chukwubuzo, A. F. (2014). A Critical Analysis of Cashless Banking policy in Nigeria. IOSR Journal of Business and Management, 16(5), 30-42.
- Fatokun, D. (2017). Keynote Address presented at the ISSAN/Microsoft Cyber Security Summit. May 19, 2017.
- George, D., & Mallery, P. (2003). SPSS for Windows step by step: A simple guide and reference. 11.0 update (4th ed.). Boston: Allyn & Bacon.
- Hokanson, S. (1995, January, 2). The Deeper You Analyze, The More You Satisfy Customers. Marketing News, 29(1), 16.
- Ikpefan, O. A., & Ehimare, O. A. (2012). Fast tracking business transactions through a cashless economy in Nigeria: Benefits and challenges. The Nigerian Banker, April-June, 17-26.
- Isiavwe, D. T. (2017). Corporate Disclosure in the Banking Industry. Evidence from Nigeria (158 p.). Bloomington: iUniverse.
- Iyoha, F. O. (2011). State Agencies, Industry Regulations and the Quality of Accounting Practice in Nigeria (Unpublished Ph.D. Thesis). Covenant University, Ota, Nigeria.
- Jumba, J., & Wepukhulu, J. M. (2019). Effect of Cashless Payments on the Financial Performance of Supermarkets in Nairobi County. International Journal of Academic Research Business and Social Sciences, 9(3), 1372-1397.
- Komolafe, B. (2017, February 24). CBN reintroduces cashless charges on bank deposits. Vanguard Newspaper.
- Lamikanra, B. (2012, July 25). Managing the Transition to a Cashless Economy in Nigeria: The Challenges and strategies. Presented at the Nigeria Computer Society (NCS) 24th National Conference.
- Mastercard. (n.d.). History of card payment.
- Nonor, D. (2011, October 20). Airtel leads Drive towards ‘Cashless Economy (Ghanaian Chronicle). Modern Ghana.
- Nyong, M. O. (1996). Monetary Policy and Commercial Bank’s Performance in Nigeria: Some theoretical and Empirical Extensions. CBN Economic and Financial Review, 34(3), 777-795.
- Obi, D. (2013, July 9). CSR: 8 banks spend N1.9bn to make social impact. The Business day.
- Ochei, V. O. (2013). Cashless Economy and the Nigerian banking system. The Pointer.
- Odior, E. S., & Banuso, F. B. (2019). Cashless Banking In Nigeria: Challenges, Benefits and Policy Implications. European Scientific Journal, 12(8), 289-316.
- Ogbonna, A. (2016, July 18). Two years of cashless banking: How e-saving products’re expanding customers’ choices. The Sun.
- Olanipekun, W. D., Brimah, A. N., & Akanni, L. F. (2013). Integrating Cashless Economic Policy in Nigeria: Challenges and Prospects. International Journal of Business and Behavioral Sciences, 3(5), 1-8.
- Olisabu, E. S. (1991). Banking in Nigeria: Sign Post in the Nineties. First Bank of Nigeria. PLC Quarterly Review, June Edition.
- Oliver, R. L. (1997). Satisfaction: A behavioral perspective on the consumer. New York: McGraw-Hill.
- 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.
- POS terminal. (n.d.). Point-of-sale terminal (Definition).
- Princewell, N. A., & Anuforo, R. (2013). Shifting policy paradigm from cash-based to cashless economy: the Nigeria experience. Afro Asian Journal of Social Sciences, 4(4), 1-16.
- Rofiat, A. (2017). The Effect of Cashless Banking on the financial performance of small and medium scale Enterprises. International Journal of Advanced Research in Public Policy, Social Development and Enterprise Studies, 2(2), 133-142.
- Selltize, C. (1977). Research Methods in Social Relations. Methuen, London.
- Sepehrdoust, H., & Berjisian, A. (2013). Credit risk management of commercial banks in Iran; using logistic model. African Journal of Business Management, 7(4), 265-272.
- Siyanbola, T. T. (2013). The Effect of Cashless Banking on Nigerian Economy. Canadian Journal of Accounting and Finance, 1(2), 9-19.
- Sumra, S. H., Manzoor, M. K., Sumra, H. H., & Abbas, M. (2011). The impact of e-banking on the profitability of banks: a case study of Pakistani Banks. Journal of Public Administration and Governance, 1(1), 31-38.
- Taiwo, J. N., Oluwafemi, A. K., Afieroho, E. O., & Agwu, M. E. (2016). Appraisal of Cashless Policy in the Nigerian Financial System. West African Journal of Industrial and Academic Research, 16(1), 105-125.
- Uzoma, A. B., Olokoyo, F. O., Babajide, A. A., Folashade, O., & Adetula, D. T. (2016). Adoption of International Financial Reporting Standards and its Implication on Banks Performance in Nigeria: A Comparative Approach. Journal of Internet Banking and Commerce, 21(5), 1-20.