THE IMPACT OF CASHLESS POLICY ON THE PERFORMANCE OF NIGERIA FINANCIAL INSTITUTIONS


Department Of Accounting


PAGES: 70
FORMAT: MS WORD
Chapters: 1-5
PRICE: ₦ 5,000.00

THE IMPACT OF CASHLESS POLICY ON THE PERFORMANCE OF NIGERIA FINANCIAL INSTITUTIONS     

ABSTRACT

This study examines the Impact of Cashless Policy on the Performance of Nigeria Financial Institutions. This study employs survey research design. Analytically, the research adopted descriptive statistics to highlights the effectiveness of the cash-less policy of the CBN in Nigeria.

Data were basically sourced from primary method through means of a well-structured questionnaire. Five major banks were selected from the twenty four banks and One hundred (100) respondents were sampled, twenty from each banks.

Three hypotheses were formulated and tested with the used of regression analysis and T-test. The analysis resulted into rejecting the null hypotheses and concluding that; there is significant relationship between cashless policy and performance in the Financial Institutions; cashless policy has significant impact on economic growth of Nigeria and that there is significant relationship between cashless policy and money laundering and corruption.

The study proffered valuable recommendations on the execution of cashless banking in Nigeria such as availability of sufficient and well-functioning infrastructural facilities (notably electricity), harmonization of fiscal and monetary policy, regular assessment of the performance of cashless banking channels (individually and collectively), consideration of the present state and structure of the economy, redesign of monetary policy framework and greater efforts towards economic growth whilst managing inflation.  In inclusion, the shift towards a cashless Nigeria seems to be beneficial though it comes with high level of concerns over security and management of cost savings resulting from its implementation.

TABLE OF CONTENTS

CHAPTER ONE – INTRODUCTION

1.1      Background                        

1.2      Statement of the Problem

1.3      Objectives of the Study

1.4      Research Questions          

1.5      Research Hypotheses       

1.6      Significance of the Study

1.7      Scope of the Study

1.8      Model Specification

1.9      Definition of Terms           

            References              

CHAPTER TWO -  LITERATURE REVIEW

2.1      Introduction

2.2      Conceptual Framework

2.3      Theoretical Framework

2.4      Empirical Review   

2.5      Gaps in the Existing Literature

            References  

CHAPTER THREE – RESEARCH METHODOLOGY

3.1      Introduction                                               

3.2      Research Design                                        

3.3      Population of Study

3.4      Sample Size                                     

3.5      Sampling Technique                                                         

3.6      Sources of Data Collection                      

3.7      Methods of Data Analysis                       

3.8      Model Specification                                              

3.9      Reliability test                                 

3.10   Validity Test                                    

CHAPTER FOUR – DATA PRESENTATION AND ANALYSIS

4.1      Introduction                       

4.2      Personal Characteristics of the Respondents

4.3      Response of Respondents to the Problem Areas

4.4      Testing and Interpretation of Hypotheses

4.5      Presentation of Secondary Data                       

4.6      Discussion of Results        

CHAPTER FIVE – SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1      Summary                 

5.2      Conclusion

5.3      Recommendations            

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

The Central Bank of Nigeria (CBN) has in recent times engaged in series of reforms aimed at both making the Nigerian financial system formidable and enhancing the overall economic performance of Nigeria so as to place it on the right path in tune with global trends. Since Nigeria’s independence in 1960, the successive reforms were channeled at enhancing social welfare and achieving developmental goals but there has been no substantial positive change in Nigeria’s economic indicators.

Introduction of mobile banking, electronic banking and online transactions in Nigeria has paved way for a new era of development where the use and demand for physical cash is gradually declining. The increase in emerging Information Technology has made banking services become more and more automated and less paper work than in the past as averred in the Central Bank of Nigeria (CBN) reports and statistical bulletins, annual reports of most Nigerian banks. Banks in Nigeria have realized that they would soon go out of corporate existence unless they keep with the pace at which Information Technology (IT) has redefined the creation of value and worth for their customers.

Also, these recent evolution of  information technology in the Nigerian financial institutions possess interesting questions for academician, economist, financial institutions, financial analyst and the regulatory agents of government such as Central Bank of Nigeria  (CBN)  regarding the current economic status, logistics, and availability of instruments to guarantee economic growth and stability, efficiency and effectiveness of the cashless policy.

Some observers (Humphrey 1996, Ohley 1999, Klee 2004, Swartz 2006) suggest that the increased use of cashless payment system; (i.e. money or scrip which is exchanged only electronically via computer networks) has led to the predictions of a cashless society.

In addition, the cashless policy aims to curb some of the negative consequences associated with the usage of physical cash in the economy, including high cost of cash, high risk of using cash, high subsidy, informal economy and inefficiency and corruption (CBN, Website, 2011).

Since the inception, various payment methods have been used to purchase goods and services starting with the trade by barter. The trade by barter method of transaction has been the foundation for the introduction of money and coins to solve the problem of double coincidence of wants and divisibility faced by trade by barter. The use of money/coins was introduced after the use of trade by barter method, and it has solved various challenges associated with trade by barter, but the use of money as an exchange medium has its own challenges and shortcomings and can still be replaced with a better payment system ‘the cashless policy’.

Developed countries like US have enjoyed various advantages which has prompted the Central Bank of Nigeria (CBN) to adopt the cashless policy. At the end of the 1980s the use of cash for purchasing consumption goods in the US has constantly dropped with inflation (Humphrey, 2004). Nigeria’s aim to be among the biggest economy by 2020 has driven her to gradually move from a pure cash economy to a cashless policy. 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 enhancing economic growth and development.

While cash and cheques are still prevalent in some parts of the world, electronic payment mechanisms and especially, mobile payments are gaining consumer acceptance in many economics due to the high penetration of mobile phone technology (Herzberg, 2003).

In view of being one of the best economies in 2020, the CBN started implementing the cashless policy in some major cities in Nigeria since 2012 such as Lagos, Kano, Port-Harcourt and Onitsha. The CBN asserted reduction in crime rates, minimized risk associated with carrying huge sums of money, 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 associated with the implementation of the cashless policy.

1.2       Statement of the Problem

The aim of any economy policies (fiscal or monetary policy) is to improve the purchasing power of every individual and the society at large.

Before the introduction of cashless policy by the Central Bank of Nigeria (CBN) in 2012, Our financial institutions has been characterized with so many issues, ranging from poor handling of physical cash, high usage of cash in doing business which affect the cost of banking operation, leakages, money laundering and other financial related offence due to high cash usage within our various economic sector (private and government).

Cashless policy as a technique of economic management is to bring about sustainable economic growth and development as introduced by the Central bank of Nigeria (CBN) has not been fully operational in the country due to; i) high rate of illiteracy, ii) in-adequate sensitization/education of the benefits of the cashless policy, and iii) in-adequate infrastructure (such as the provision of internet connections in commercial areas, computers and Point on Sale (POS) machines) in some part of the country.

Apart from the physical challenges, economic data and indicators are not fully available and reliable. There is a great challenge in attempting to analyze the true impact of the cashless policy on the economy of Nigeria as only few monetary and macro-economic indicators can be traced with relation to the subject matter. Several scholars have attempted to analyze the cashless system or e-banking. However, it becomes clear that few studies present a comprehensive evaluation of cash-less banking implications in developing countries. Most ignore the economic benefits of the equation while some do incomplete examination of its negative implications. This is often due to unreliable panel data for monetary and macro-economic indicators. Although, this study focuses on Nigeria Financial institutions, it is difficult to translate cashless studies from one country to another. Even payments instruments that look similar across countries on the surface may be different due to historical and legal variations (Daniel et al, 2004).

This study therefore examines the impact of cashless policy on performance of financial institutions.

1.3       Objectives of the Study

The main objective of the study is to examine the impact of the cashless policy on performance of Financial Institutions in Nigeria and how it affects economic growth. Specific objectives of the study include: project topics   final year project topics and research materials 

To examine the impact of the cashless policy on performance of financial institutions. To assess the impact of the cashless policy on economic growth of Nigeria. To determine the impact of cashless policy on money laundering and corruption

1.4       Research Questions

This study tends to provide answer to the following research questions;

To what extent does cashless policy impact performance of financial institutions? To what extent does cashless policy impact the economic growth of Nigeria? To what extent does cashless policy impact money laundering and corruption?

1.5       Research Hypotheses

The following hypotheses are formulated tentatively and for be tested during the course of the research.

Hypothesis One

Ho       There is no significant relationship between cashless policy and performance in the Financial Institutions

Hypothesis Two

Ho       Cashless policy has no significant impact on economic growth of Nigeria

Hypothesis Three

Ho       There is no significant relationship between cashless policy and money laundering and corruption

1.6       Significance of the Study

The study will give various insights into the various implications the introduction of the cashless policy will have on financial institutions and the economy of Nigeria. Through examining various economic indicators such as the gross domestic product (GDP) and inflation, the study will examine and compare growth trends and changes to determine whether the cashless policy introduced by the CBN has a negative or positive effect on the economy of Nigeria.

Various challenges and prospects identified in the study will also enable various stakeholders to tackle these challenges effectively by making policies that will address them and boost the economy of Nigeria.

1.7       Scope of the Study

In pursuance of the objective of the study; attention shall be focused on electronic banking among other electronic commerce implementation. In order to conduct an empirical investigation into the adoption of Electronic banking in Nigeria and will also examine the nature of electronic banking operations from the CBN bulletin from 2010-2014. The research scope cover financial institutions for gathering of data related to cashless policy.

1.8     Operationalization of Variables

Y      =      f(X)

X      =      (x1, x2, x3, x4) -    Proxies for Cashless Policy

Y      =      βo+β1x1+β2x2 + β3x3 + β4x4+U

Where

Y       =          Cashless Transactions

X       =          Cashless Policy

x1      =          ATM

x2   =          WEB

x3    =      POS

x4    =      MOBILE

βo   =          Intercept of the line   

β1    =          Coefficient of x1

β2    =          Coefficient of x2

β3    =          Coefficient of x3

β4    =          Coefficient of x4

               µ       =          Stochastic Variable/error term

1.9       Operational Definition of Terms

Cashless: designating of financial transactions handled by means of credit cards, bank transfers, and cheques, with no money handed from person to person

e-banking: A system allowing individuals to perform banking activities at home, via the internet.

Economic Growth: Increase in a country's productive capacity as measured by comparing gross national product (GNP) in a year with the GNP in the previous year

POS (Point of Sale): Point of sale is a  computerized network operated by a main computer and linked to several checkout terminals

Automated Clearing House Transfers (ACH): is an electronic network for financial transactions that processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit, payroll and vendor payments

ATM: An abbreviation for automated teller machine, an electronic banking outlet, which allows customers to complete basic transactions without the aid of a branch representative or teller

Travelers cheques: Check issued by a financial institution which functions as cash but is protected against loss or theft

Wire transfers: A wire transfer is the direct transfer of funds from the payer's account at one bank to the payee's account at another bank

NIBSS Funds Transfers: The Nigerian Interbank Settlement Scheme is an online platform where banks exchange value thereby enabling the performance of interbank transfers such as NEFT and NIBSS instant transferring funds between banks for single or multiple beneficiaries for individual amounts not exceeding N10million.

NEFT Transfers: once effected works with the next available clearing session of CBN and is received in the beneficiary’s account the same day or next working day, but NIBSS instant payments are immediate.

RTGS: Real Time Gross Settlements is used to transfer sums above N10million in favor of a single beneficiary. It is used for big ticket transactions which must have been effected before noon for most banks if the funds are to reach the recipient bank the same day.

Mobile Money: this is a product that enables users to conduct funds transfers, make payments or receive balance enquiries on their mobile phones.

E- Transfers: refers to electronic transfers which can be effected via the internet on PCs, laptops and other devices. Bank customers who have subscribed to internet banking can do basic banking transactions via the web.

.



TYPE IN YOUR TOPIC OR KEYWORD AND CLICK SEARCH:

HOW TO GET THE COMPLETE PROJECT MATERIAL ON THE IMPACT OF CASHLESS POLICY ON THE PERFORMANCE OF NIGERIA FINANCIAL INSTITUTIONS

  • * Click the green DOWNLOAD Button above

    * Select any option to get the complete project material instantly.

    * Chat our 24/7 customer service desk on WhatsApp# (+234) 0803-766-4978 and get your complete project material instantly.

    * All project materials on this website are well researched by professionals with high level of professionalism.


TESTIMONIES FROM OUR CLIENTS

Please feel free to carefully review some written and captured responses from our satisfied clients.


  • Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.

    "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."


  • Hilary Yusuf, United States International University Africa, Nairobi, Kenya.

    "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"


  • Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.

    "Researchwap.net is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.net" and God bless you and your business! ."


  • Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.

    "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."


  • Sampson, University of Nigeria, Nsukka.

    "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."


  • Cynthia, Akwa Ibom State University .

    "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."


  • Elizabeth, Obafemi Awolowo University

    "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."


  • Ali Olanrewaju, Lagos State University.

    "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."


  • Willie Ekereobong, University of Port Harcourt.

    "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"


  • Theressa, Igbinedion University.

    "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 5k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"


  • Joseph, Abia state Polytechnic.

    "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."


  • Christiana, Landmark University .

    "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"


  • Musa, Federal University of Technology Minna

    "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."


  • Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.

    "I was scared at first when I saw your website but I decided to risk my last 5k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."


  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.
    Thank you for choosing researchwap.com.

FREQUENTLY ASKED QUESTIONS

  • How can I get the complete project - THE IMPACT OF CASHLESS POLICY ON THE PERFORMANCE OF NIGERIA FINANCIAL INSTITUTIONS

    Simply click on the DOWNLOAD green button above and follow the procedure stated.


    Is it a complete project work or just materials?

    Yes, it's a Complete Research Project material. i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data


    What if I want to change the case study for THE IMPACT OF CASHLESS POLICY ON THE PERFORMANCE OF NIGERIA FINANCIAL INSTITUTIONS, What can i do?

    Chat with Our 24/7 Customer Service Desk Now: WhatsApp# and you will be responded to Instantly


    How long does it take to get the complete project on THE IMPACT OF CASHLESS POLICY ON THE PERFORMANCE OF NIGERIA FINANCIAL INSTITUTIONS?

    Depending on how fast your payment and details is acknowledged by us, you will get the complete project within 30 minutes. However, on a very good day you can still get it within 15 minutes!


    How will I get my complete project?

    The Complete Project Material will be Delivered via your Email Address in an MS Word document format


    Can I get my Complete Project through WhatsApp?

    Yes! We also send your Complete Research Project to your WhatsApp Number


    What if my Project Supervisor made some changes to a topic i picked from your website?

    Call or Chat With Our 24/7 Custumer Care Desk: +2348037664978 and you will be responded to Instantly


    Do you assist students with Assignment, Term Paper, Seminar and Project Proposal?

    Call or Chat With Our 24/7 Custumer Care Desk: +2348037664978 and you will be responded to Instantly


    What if i do not have any project topic idea yet?

    Don't Worry! We've Got Your Covered. Chat with us on WhatsApp# (+234) 0803-766-4978 to Get Instant Help.


    Why should I trust this website?

    We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "TOPNOTCH INFOTECH ENTERPRISE". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!


    I have a fresh topic that is not on your site. How do I go about it?

    Don't Worry, Chat with us on WhatsApp# (+234) 0803-766-4978 to Get Instant Help.



PROJECT DETAILS

PAGES: 70
FORMAT: MS WORD
Chapters: 1-5
PRICE: ₦ 5,000.00




TYPE TOPIC OR KEYWORD AND CLICK SEARCH: