Impact of Cashless Policy Measures on Financial Inclusion in Nigeria

Abstract

The current study examines the impact of cashless policy measures (digital payment platforms, point-of-sale (POS) terminals, and debit and credit cards) on financial inclusion in Nigeria. For this purpose, it adopted a cross-sectional research design. The target population comprised Nigerians of various age groups, gender, income levels, and from different geographic locations in the country, who use digital banking services. Using Taro Yamane's sample size determination, a total of 400 customers (respondents) were drawn from the population comprising the customers of commercial banks in Nigeria, which stood at 122,231,000 as of 2021. The study employed simple random sampling technique. This was to ensure that the findings remained representative of the entire population. Both primary and secondary methods of data collection were used. Regression analysis was employed to assess the relationship between cashless policy and financial inclusion, while controlling for demographic variables. The study found that digital payment platforms, such as electronic funds transfer (EFT) and debit and credit cards have a significant positive influence on financial inclusion. Contrary to expectations, the study found that a point-of-sale (POS) terminal seemingly has no significant impact on financial inclusion. It is recommended that governmental entities and regulatory authorities should recognize and endorse the significance of digital payment platforms in augmenting financial inclusivity. The implementation of effective policies and regulations, the cultivation of an environment that supports innovation, and the provision of incentives to financial institutions are key strategies to facilitate the advancement of digital financial services.