CASHLESS POLICY SOLUTION AND SERVICE SECTOR PERFORMANCE IN NIGERIA

Abstract This study examined cashless policy solution and service sector performance in Nigeria using quarterly time series data from 2009 to 2024 of the values of Automated Teller Machine transactions, Point-of-Sale payment, web Payments, Mobile Payment, service sector contribution to gross domestic product from the statistical bulletin of Nigeria’s apex bank. The econometric technique of Error Correction Mechanism was used as the main analytical technique. Regarding the influence of cashless policy on service sector performance in model one; the results revealed that, the performances of the cashless policy instruments - values of automated teller machine transactions, point of sales and web payments showed sign of performance potential of increasing service sector performance. However, mobile payment has a detrimental influence on service sector performance in Nigeria. The study concluded that, the relationship between channels of cashless policy and service sector performance in Nigeria differs; it can be advantageous or disadvantageous. Therefore, the study recommended that, the Nigeria’s apex bank should try and encourage deposit money banks to deliver excellence e-payment channel services to those banking with them. Also, CBN should enlighten the populace more on the essentials of the cashless system so that, the benefits of the policy which include the enhancement of banks’ revenue and achievement of adequate service sector performance in Nigeria will be enjoyed by inhabitants of the country. Keywords: Error Correction, Mobile payment, Service sector, Transactions, Web payments