Title: Digital Transactions And Economic Growth In Nigeria
Authors: Nwigbo, Daima Martins, FCA ans Eke Promise, PhD
Volume: 9
Issue: 9
Pages: 80-89
Publication Date: 2025/09/28
Abstract:
This study investigated the effect of digital transactions on economic growth in Nigeria, focusing on point of sales (POS) terminal transactions, internet (web) transfers, and nominal gross domestic product (GDP) from 2009 to 2024. An ex-post facto research design was employed, using secondary data sourced from the Central Bank of Nigeria's Statistical Bulletin. Given the small and complete nature of the dataset, a census approach was adopted, with all 16 annual observations included. Descriptive statistics provided a summary of the variables, while the Augmented Dickey-Fuller (ADF) unit root test assessed stationarity. The Autoregressive Distributed Lag (ARDL) model was utilized to examine both short-run and long-run dynamics, with diagnostic tests conducted to ensure model robustness. Findings reveal that POS transactions positively and contribute to GDP growth, while internet transfers show a positive but statistically insignificant relationship with economic growth in the short run. In the long run, both channels enhance GDP performance, highlighting the transformative role of digital payment systems in driving economic expansion. The study recommended strengthening financial technology infrastructure, enhancing internet connectivity, and implementing regulatory policies that promote secure and inclusive digital transactions to accelerate Nigeria's economic growth trajectory.