TODA YAMAMOTO CAUSALITY TEST BETWEEN CASHLESS ECONOMY AND ECONOMIC GROWTH IN NIGERIA

Cashless economy- a system where money transactions occur digitally is key to achieving sustained economic growth in Nigeria. The paper examined the impact of cashless economy on economic growth in Nigeria between 2010Q1 and 2024Q4. In this paper, the dependent variable is Per Capita Real Gross Domestic Product (PCRGDP) proxied for Economic Growth, and the explanatory variables are Automated Teller Machine (ATM), Point of sale Terminals (POS), Web Pay (WEB), and Mobile Pay (MOP). The data was analyzed using descriptive statistics, Unit Root Test, and Toda Yamamoto modelling techniques. The results show that Automated Teller Machine (ATM) do not have a causal effect on Economic Growth in Nigeria, meaning that Automated Teller Machine (ATM) do not impact significantly on Economic Growth in Nigeria; Point of sale Terminals (POS) have a causal effect on Economic Growth in Nigeria, meaning that Point of sale Terminals (POS) impacts significantly on Economic Growth in Nigeria; Web Pay (WEB) do not have a causal effect on Economic Growth in Nigeria, meaning that Web Pay (WEB) do not impacts significantly on Economic Growth in Nigeria; and Mobile Pay (MOP)have a causal effect on Economic Growth in Nigeria, meaning that Mobile Pay (MOP)impacts significantly on Economic Growth in Nigeria. The study therefore concludes that Point of sale Terminals (POS) and Mobile Pay (MOP) impacts significantly on economic growth in Nigeria while Automated Teller Machine (ATM) and Web Pay (WEB) do not have a significant effect on economic growth in Nigeria within the period of study. The study recommended amongst others that since POS and Mobile Pay have a significant positive impact on economic growth, the government and financial regulators should provide tax incentives, subsidies, or reduced transaction fees to merchants and consumers using POS and Mobile Pay and expand mobile network coverage and improve POS infrastructure, especially in rural and underserved areas. Also, monetary authorities should integrate POS and Mobile Pay into formal financial reporting to increase transparency and economic tracking