An Appraisal of Cashless Policy in Nigeria

This study evaluates the cashless policy in Nigeria, focusing on two key objectives: assessing the extentof electronic card transaction usage and determining the impact of the policy on cash transactions. Thepopulation studied includes all electronic and cash transactions from 2005 to 2014. Using a deliberatenon-random sampling method, the research relies on secondary data sourced from the 2014 CentralBank of Nigeria (CBN) Statistical Bulletin. Time series data on electronic transactions were analysedusing Excel tables and charts. The findings reveal a moderate positive correlation between ATM usageand currency outside banks, indicating increased electronic card transaction usage since the policy'simplementation. However, contrary to expectations, cash transactions have also risen. The studyconcludes that while the cashless policy has boosted electronic transactions, its effect on reducing cashtransactions remains limited. It is recommended that the government and CBN intensify awarenesscampaigns on the benefits of a cashless economy and provide the necessary infrastructure to enhance itsadoption for economic growth and business development.