Digital Financial Systems and the Transformation of Nigerian Supply Chains: Evidence from Nigerian SMEs (2019–2023)

The study investigates the impact of cashless policy implementation on the efficiency and growth of supply chains in Nigeria, using Small and Medium Enterprises (SMEs) as a case study. As Nigeria advances towards a cashless economy, digital payment systems such as NEFT and POS have reshaped how supply chains operate, especially among SMEs that form the backbone of many sectors. The study analyzes data from 2019 to 2023 using Ordinary Least Squares (OLS), ARDL co-integration, and Bounds testing to determine how cashless banking indicators influence the contribution of SME-driven supply chains to GDP. Findings reveal that while cashless systems significantly enhance supply chain performance in the long run, their short-term benefits are hindered by infrastructural deficits, low digital literacy, and regulatory gaps. The paper concludes by offering policy recommendations aimed at strengthening digital infrastructure, improving awareness, and fostering an inclusive financial ecosystem that supports resilient and adaptive supply chains through SME participation