The Effects of Cashless Policy on Nigeria Economy
Uploaded by: Society For Research And Academic Excellence
The paper examined the effect of CBN‟S cashless policy on Nigeria economy. Given the policy‟s objectives, the paper x-rayed the associated benefits of the policy; discussed the various aspects of cashless banking channels; and dissected the attendant challenges that may encumber its successful implementation. We adopted a descriptive research design; and the collected data were analyzed using content analysis. Four hypotheses were formulated to guide the study whereas our theoretical framework of analysis is Weingather‟s capital rationing theory. The study discovered that when fully implemented; the policy will help in reduction of money laundering; act as a check on terrorist financing; ensure effectiveness of monetary policy; create more employment opportunities in the financial sector; provide evidence against bribe givers and takers especially among the civil servants and politicians; lead to growth in the real sector of the economy and impact positively on Nigeria economy. The paper made some suggestions that will make the policy to succeed. They include periodic review of the policy by the CBN to iron out grey areas; embarking on intensive awareness campaign and sensitization of the citizenry by the CBN; putting adequate security mechanisms in place to forestall Fraudulent practices; making power supply work efficiently and exempting cash lodgements on public holidays from cash management charges.
About the Authors
C. I. Onodugo
B. A. Amujiri