DIGITAL PAYMENT CHANNELS AND ECONOMIC GROWTH IN NIGERIA

Authors

  • Dr. Marshal Iwedi Department of Finance, Faculty of Administration and Management Rivers State University, Nkpolu-Oroworukwo, Port Harcourt.

Keywords:

Digital Payment Channels, Real Gross Domestic Product, Automated Teller Machine transactions, Point of Sales transactions, Electronic Wallet transactions, Mobile Banking App transactions

Abstract

This study investigates the dynamic interplay between digital payment channels and economic growth in Nigeria, drawing on the theoretical frameworks of financial inclusion, economic growth, and technology-driven efficiency and productivity. Leveraging quarterly data from the Central Bank of Nigeria's Statistical Bulletin (2022), the research employs financial time series methodology, utilizing Ordinary Least Squares (OLS) and Granger Causality Techniques for analysis. The findings reveal distinctive impacts of various digital payment channels on economic growth. Specifically, transactions through Automated Teller Machines (ATMs) and Mobile Banking Apps (MBAs) exhibit positive and statistically significant influences, while Point of Sale (POS) transactions lack significant impact, and Electronic Wallet (EWT) transactions display a negative effect. Granger causality tests indicate past values of these digital payment channels can predict future economic growth, suggesting causal relationships. The study underscores the pivotal role of mobile banking apps and ATMs in driving economic growth, emphasizing the need for enhanced digital infrastructure, widespread financial literacy campaigns, and a supportive regulatory framework. The positive correlation between specific channels and economic growth underscores the transformative potential of digital payment systems in Nigeria. Recommendations include investing in digital infrastructure, promoting financial literacy, formulating conducive regulatory frameworks, and fostering continuous research and innovation in financial technology

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Published

2024-03-25

How to Cite

Iwedi, M. (2024). DIGITAL PAYMENT CHANNELS AND ECONOMIC GROWTH IN NIGERIA. Advance Journal of Management, Accounting and Finance, 9(3), 16–36. Retrieved from https://aspjournals.org/ajmaf/index.php/ajmaf/article/view/87

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Articles