Authors:
Basheerah Adewumi Qazeem, Paul Oluwaseun Mathias
Addresses:
Department of Banking and Finance, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria.
Abstract:
This study investigates the effect of Nigeria's cashless policy on money circulation, with a focus on Point of Sale (POS) systems and web-based payments. The primary objective was to determine how these cashless transactions affect Broad Money Supply in Nigeria. Utilising an ex post facto research design and a time-series approach from 2019 to 2023, the study analysed secondary data sourced from publications, including the National Bureau of Statistics Handbook and Statistical Bulletin. The fully-modified Ordinary Least Squares (FMOLS) method was employed to assess the relationships between POS transactions, web payments, and money circulation. Findings indicate a significant positive relationship between POS transactions and Broad Money Supply, with a coefficient of 0.00006, suggesting that a percentage increase in POS usage is associated with a proportional increase in the circulation of money. Similarly, web payments have a positive impact on Broad Money Supply, with a coefficient of 0.00008, indicating that increased web payment transactions also contribute to higher money circulation. These results underscore the effectiveness of cashless transactions in enhancing money circulation and supporting broader financial inclusion in Nigeria.
Keywords: Cashless Policy; Financial Inclusion; Monetary Policy; Financial Stability; Point of Sale; Human Activity; Internet Banking; Broad Money; Money Circulation.
Received: 07/08/2024, Revised: 29/10/2024, Accepted: 06/12/2024, Published: 03/03/2025
DOI: 10.64091/ATISL.2025.000145
AVE Trends in Intelligent Social Letters, 2025 Vol. 2 No. 1 , Pages: 52-63