CASHLESS SYSTEM DEVELOPMENT IN NIGERIA: A COMPARATIVE ANALYSIS WITH SELECTED AFRICAN ECONOMIES

Abstract

This study examines the extent of development of the Nigerian cashless system by analyzing some key indicators of a cashless system. These include ATM per inhabitant, growth of ATM withdrawals, bank branches per inhabitant, currency in circulation/GDP, PoS per inhabitant as well as total population, percentage of unbanked population, adults with an account, credit card penetration, cards transactions per year per capita and cash payment, then comparing them with some selected countries in Africa-Egypt, Morocco and South Africa. The study reveals that the Nigerian cashless system (though at an emerging stage) partially performed when compared with other selected countries with the exception of South Africa. This implied that even though they are all regarded as dominant economies in Africa, the Nigerian cashless system and its peers fail to meet the global average standards. The study recommends the expansion and improvement of social infrastructures, effective use of PoS meant for merchants and the massive deployment of the latest technologies such as ATM fingerprints (for withdrawal and deposit) and PoS fingerprints to proactively tackle future challenges in the system. The study also advocates the creation, promotion, supportive regulatory and supervisory framework that embraces financial inclusion and education for the general public.