EFFECTS OF CASHLESS POLICY ON THE PERFORMANCE OF SELECTED SECTORS OF NIGERIA ECONOMY (2009-2023)

Abstract

This study examined the effect of Nigeria’s cashless policy on various sectors of the economy, 
with emphasis on the banking, industrial, service, and agricultural sectors. The objectives are to 
assess how mobile banking, internet banking, and POS transactions influence sectoral 
performance under the cashless policy framework. Secondary data were sourced from the 
Central Bank of Nigeria (CBN) Statistical Bulletin 2023 and the Nigeria Deposit Insurance 
Corporation (NDIC), covering relevant periods. The results show that mobile banking has a 
positive but insignificant effect on the banking sector’s performance (ROA). In the industrial 
sector, internet banking exhibits no significant effect on output. For the service sector, POS 
transactions have a positive but insignificant effect. Conversely, in the agricultural sector, mobile 
banking demonstrates a negative and statistically significant effect. The study concludes that 
while the cashless policy has contributed positively in some sectors, its benefits remain unevenly 
distributed. It recommends targeted expansion of digital infrastructure, sector-specific 
sensitization programs, and tailored interventions for agriculture to ensure inclusive and 
sustainable gains from Nigeria’s cashless initiative