Cashless Policy, Information Technology and Performance of the Nigerian Economy

Abstract

The study “cashless policy, information technology and performance of the Nigerian economy’’, considers the impact of cashless policy in relation to advancements in information and communication technology (ICT) on the overall performance (growth and development) of the Nigeria’s economy between 2010 to 2023. Cashless policy’s introduction in Nigeria was in 2012 targeted to reduce excessive cash transactions, promote electronic payment systems, enhance transparency, and improve the efficiency of financial services in the economy. Further, using secondary data from the central bank of Nigeria statistical bulletin, National Bureau of Statistics (NBS), and World Bank Reports, the study would employ both descriptive and econometrics analyses of ordinary least squares (OLS) to assess the relationship between cashless policy and information technology toward economic performance of Nigerian economy. Findings reveal a significant positive correlation between the adoption of cashless payment systems and economic growth, as information and communication technology (ICT) induced banking operations have enhanced transaction speed, improved electronic storage and transmission, reduced corruption, and improved government revenue collection. However, there are undisposed challenges which needed urgent policy attention such as cybercrime, poor network infrastructure, and low-interest banking public and digital illiteracy which have continued to hinder the full realization of the policy’s benefits. The study summarizes that cashless policy, when adequately structured and supported by robust ICT improved infrastructure and effective regulatory frameworks will contribute meaningfully to Nigeria’s economic growth and development. It therefore recommends among others that policymakers should strengthen cyber security measures, expand broadband access, and intensify financial literacy programs to ensure a more inclusive and technology induced economy.