Title: Electronic Payment Systems And Economic Development In Nigeria.
Authors: Nwigbo, Daima Martins, FCA, Prof. Emeka J. Okereke, Eke Promise, PhD
Volume: 9
Issue: 8
Pages: 28-42
Publication Date: 2025/08/28
Abstract:
The study investigated the relationship between electronic payment systems and economic development in Nigeria. The study utilized an ex-post facto research design. The population of this study was the entire Nigerian economy where the data items used in this research were obtained specifically from Central Bank of Nigeria and World Bank. The study employed judgemental sampling technique over a 16-year period (2009-2024) to explore the relationship between electronic payment systems (ATM, POS), key economic development indicators (gross domestic product, human development index) and the moderating effect of digital literacy rate. Data were sourced from Central Bank of Nigeria and World Bank reports, analyzed using Eviews-9 statistical package and SPSS version, 25, employing descriptive statistics and Ordinary Least Squares (OLS) regression. Results confirmed a positive significant relationships between Automated Teller Machine (ATM), Point of Sales (POS) Terminals, and Gross Domestic Product (GDP). The result also, disclosed a positive significant relationship between Automated Teller Machine (ATM), Point of Sales (POS) Terminals, and Human Development Index (HDI). More so, the result indicated a positive significant moderating effect of Digital Literacy Rate (DLR) on electronic payment systems and economic development in Nigeria. Hence, the investigator concluded that there is a substantial and meaningful relationship between electronic payment systems and economic development in Nigeria. The study further suggested that policymakers should work towards increasing accessibility of ATM and POS terminals, especially in underserved areas, and ensuring the efficiency of these electronic payment channels. Policymakers should also collaborate with relevant stakeholders to design and implement programs that enhance digital literacy, with a specific focus on utilizing electronic payment systems amongst other things.