Critical Review of Cashless Policy Implementation in Nigeria

Ewa, Uket Eko; Adesola, Wasiu Adebisi; & Essien, Etim Ndu
Department of Accountancy, University of Cross River State, Ogoja, Cross River State, Nigeria
Correspondence: Uket E Ewa, Department of Accounting, UNICROSS, Nigeria.
DOI – http://doi.org/10.37502/IJSMR.2025.8305

Full Text – PDF

Abstract

The cashless policy initiative was to accomplish two main macro-socio-economic policy objectives of increased convenience and greater financial inclusion in Nigeria. The study which carried out a critical review of the Cashless policy implementation in Nigeria arose as a result of the state of the economy, cash payment transactions, level of corruption and illegality in the Nigerian State. The conceptual review of the various studies on electronic banking covering ATM, mPoS, PoS, web-based banking was carried out alongside the primary objective of the CBN Cashless policy when it was inaugurated. The review found an increased demand and application of agency banking transactions (mPoS), rise in inflation which the scheme was to address, none significance of the scheme in driving economic growth, increase in corruption occasioned by unregulated manner PoS and mPoS transaction schemes. The study recommends a strict application of electronic banking transfer system, reduction in cash-based transaction per PoS agent and customer per day, vigorous investments on cyber security, a review of the fintech law, strengthening of internet protocol, technological infrastructure to facilitate easy electronic funds and controls in the financial institutions and enactment of relevant legislative laws to curb cybercrimes. and the improvement in the technological infrastructure to facilitate easy electronic funds transfer across the country.

Keywords: cashless policy, corruption, macroeconomic, transparency.

References

  • Adewoye, J. O. (2013). Impact of mobile banking on service delivery in the Nigerian commercial banks. Int. Rev. Manage. Bus. Res. 2(2): 333-344.
  • Adejobi, O. (2024). Press release: Alleged illegal financial transactions: NPF reiterates ban on use of PoS, other electronic mobile money transaction devices within police stations facilities, Nigeria Police Force, Retrieved from http://www.facebook.com
  • Agu, A. O. & Agu, S. U. (2020). Cashless policy and the Nigerian Economy: A disaggregated approach, International Journal of Humanities, Social Sciences & Education, 7 (4), 21-30, http://dx.doi.org/10.2043/2349-0381.0704003
  • Akintaro, S. (2025). PoS transactions surge to 18 trillion in 2024 as fintechs expand terminal deployment, Retrieved from Nairametrics on February 7, 2025
  • Amida, A. (2024). Police extorted money from me, The Nation, March 26, 2024
  • Andrea, I. B; Udeh, S. N & Allison, P. U (2022). Effect of e-payment system on the gross domestic product of Nigeria, British International Journal of Applied Economics, Finance and Accounting, 6(3), 1-15
  • Central Bank of Nigeria (2015). The cashless Nigerian project, Retrieved from: http://www/cenbank.org/cashless
  • Central Bank of Nigeria (2015). Cash-less Nigeria, Retrieved https://www.cbn.gov.ng
  • EFInA, (2013) What does the CBN’s Cash-less policy mean for financial inclusion in Nigeria? Enhancing Financial Innovation and Access, Bankable Frontier Associate (BFA).
  • Egwuatu, O. K.; Sebastian, O. E. & Igwe, A. A. (2023). Assessment of cashless policy implementation in Nigeria: Prospects and challenges, International Journal of Multidisciplinary Research and Growth Evaluation.
  • Ekegha, N. (2024). At =N=1.08 Quadrillion in 2024, Nigeria’s e-payment transactions surged to record high, ThisDayLive, Retrieved from http://www.thisdaylive.com
  • Emecheta GN. (2012). The cashless policy of the Central Bank of Nigeria: Its implications in the management of higher education in Nigeria. A paper delivered at the Committee of Bursars Meeting, Cross River University of Technology, Calabar, Nigeria
  • Ewa, U. E & Egu, I. E. (2016) Evaluating Nigeria cashless policy implementation, International Journal of Business and Social Research, 6(5), 17-27
  • Gambo, N; Ussaini, T & Ozah, J. P (2024). Effect of cashless policy on Nigeria’s economic growth, Malete Journal of Accounting and Finance, 1(1), 22-35
  • Garcia-Aviles, J. A. (2023). Diffusion of innovation, Miguel Hernandez University, Span
  • Ibe, R. C. & Odi, E. R. (2018). Cashless policy in models of economic growth: The Nigerian evidence, International Journal of Business and Law Research, 6(4), 38-48
  • Igbara, F. N; Emerenini, F. M. & Daasi, G. L. K. (2015). The impact of cashless policy on Small Scale Businesses in Ogoni land of Rivers State, Nigeria, Journal of Economics and Finance, 6(3), 33-38
  • Igbekele, G. B. & Ugo, C. O. (2022). Analysis of prospects and challenges of E-payment system in Nigeria, Journal of Business, 11 (1)
  • Ikpefan, O. A.; Akpan, E. G., Evbuomwan, G. & Ndigwe, C. (2018). Analysis of the effects of the cashless policy on the Nigerian economy, International Journal of Civil Engineering and Technology, 9 (10), 718-731
  • James, A. O. (2012). The acceptance of e-banking by customers in Nigeria. World Rev. Bus. Res. 2(2):6-8.
  • Kabir, A. (2020). Police investigate officers caught on camera extorting with PoS, Premium Times, January 10, 2020
  • Madugba, J. (2020). Cashless policy and economic growth: The Nigerian perspective. Sumerianz Journal of Economics and Finance, 3(7), 85-89
  • Majeed, B. (2025). Special report: How poor regulation of instant payment system fuels criminality in Nigeria, Premium Times, January 11, 2025
  • Ubanagu, M. (2024). How N4m ransom passed through my account – PoS operator, Punch Newspapers, October 17, 2024
  • Morufu, O and Taibat, A. (2012). Banker’s perceptions of electronic banking in Nigeria: A review of post consolidation experience. Research Journal of Finance and Account. 3(2):5-6.
  • Muyiwa, O.; Tunmibi, S. & John-Dewole, A. T (2013). Impact of cashless economy in Nigeria, Greener Journal of Internet, Information and Communication System, 1 (2), 40 – 43
  • Nevin, A. S; Osinubi, F; Irikefe, A; Osemwegie, A; Omosomi, O. & Umweni, K. (2020). Changing competitive landscape: Fintech and the banking sector in Nigeria, www.pwc.com
  • Njoku, C. O; Nwadike, E. C & Azuama, G. U (2020). Effect of electronic banking on the economic growth of Nigeria (2009 – 2018), The International Journal of Business Management and Technology, 4(3), 196-219
  • Ogbeide, O; Nwamaka, E & Ishiuwu, V. N (2016). An empirical investigation into the impact of electronic banking on Nigerian economic growth, The Journal of Economics and Social Studies, 8(1), 108-121
  • Obiegbu, C. E. (2023). Challenges and prospects of cashless policy and e-payment system on the Nigerian economy: A study of Anambra State, International Journal of Public Administration, 2 (2), 263 – 273
  • Ogunlade, D. A. & Amodu, M. A. (2024). The influence of the cashless policy on economic growth and development, NIU Journal of Social Sciences, 10(1), 39-50
  • Okereke, J. U. (2016). Cashless banking transactions and economic growth of Nigeria, Middle-East Journal of Scientific Research, 24(11), 3576-3581
  • Omojuyigbe, O (2018). Policemen extort =N=100,000 from building contractor through PoS, Punch Newspapers, July 17, 2018
  • Samuel, E. N. & Emenyi, E. O. (2024). Cashless policy and economic growth in Nigeria, International Journal of Development and Economic Sustainability, 12(3), 46-69
  • Ugwu, C. (2024). Police operatives kidnap, extort N1 million from another Nigerian, Premium Times, December 10, 2024)
  • Transparency International (2024), Corruption ranked by country/Africa, Trading Economics, https://tradingeconomics.com