CASHLESS POLICY IN NIGERIA EFFECTS, CHALLENGES AND PROSPECTS ON ELECTRONIC BANKING

ABSTRACT The introduction of electronic banking, online transaction and mobile banking in Nigeria has paved way for a new dawn of development where the use of cash and it demand is gradually declining. These recent evolution of technology in the Nigeria financial institutions creates interesting questions for financial institutions, economist, business analyst and the government regarding the current economical status, logistics, and availability of instruments to guarantee economic growth and stability, efficiency and effectiveness of the cashless policy. Since the creation of man, diverse payment methods have been used to purchase goods and services, with starting with the trade by barter. The trade by barter system of transaction has been the bedrock for the introduction of money to solve problem of double coincidence of wants and divisibility faced by barter. The use of money/coins was introduced after the use of trade by barter system, and has solved so many challenges associated with trade and barter, but the use of money as an exchange medium has its own challenges and disadvantages and can still be replaced with a better payment system called the cashless policy or banking. Various advantages enjoyed by more developed nations such as the US has prompted the Central Bank of Nigeria (CBN) to adopt the cashless policy. viii TABLE OF CONTENTS Title Page: - - - - - - - - i Declaration: - - - - - - - - ii Certification: -- - - - - - - .- - iii Dedication: - - - - - - - - iv Acknowledgements: -- - - - - - - - v Abstract: - - - - - - - - - vi Table of Contents: - - - - - - - - vii CHAPTER ONE: INTRODUCTION 1.1 Background of the Study………………………………….………………….1 1.2 Statement of the Problem…………………………………...…………………3 1.3 Research Questions……………………………………………………….……3 1.4 Objectives of the Study……………………………………………….………..5 1.5 Research Hypotheses……………………………………………………….…6 1.6 Significance of the Study…………………………………….………………..6 1.7 Scope and Limitation of the Study………………………….…………………7 CHAPTER TWO: REVIEW OF RELATED LITERATURE 2.1 Introduction ……………………………………………………………………7 ix 2.2 Concepts of Quality service..……………….…….…………………………....7 2.3 Empirical review of Quality service and customers satisfaction………………11 2.4 Theoretical Framework…………….……..……………………………………17 2.5 Summary……………………………………………………………………….24 CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Introduction…………………………………………………………..........34 3.2 Research Design……………………………………………………………35 3.3 Population and Research Sample…………………………………………..35 3.4 Method of Data Collection…………………………………………………35 3.5 Method of Analysis and Model Specifications……………………………..36 3.6 Justification of the Method of Data Collection and Analysis………………36 3.7 Summary …………………..…………………..…………………………..37 CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 4.1 Introduction…………………………………………………………….…40 4.2 Data presentation…..………………………………………………….......42 4.4 Data Analysis ……………..………………..……………………….……44 4.6 Discussion of findings………………….……………………....................51 x CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMNDATIONS. 5.1 Summary………………………………………..…………………….........44 5.2 Conclusion…………………………………………………....…………….55 5.3 Recommendations…….……….…………………………...…....................56 5.4 Suggestion for further study………………………………………………..56 Bibliography…………………………………………...……………………59 Appendices…………………………..………………………………………64