Impact of Cashless Society on Emotional Value and Significance of Money (A Case Study of the Nigeria Economy)
Chapter One
Objectives of the Study
The objectives of the study are to determine the effect of the cashless policy on Nigeria’s economy. Other specific objectives of the study include:-
- To examine the relationship between the value of cash transfer from Automated Teller Machine on Gross Domestic Product.
- To examine the significant relationship between the value of the Point of Sale on Gross Domestic Product.
CHAPTER TWO
LITERATURE REVIEW
Introduction
This chapter reviewed the existing related literatures that are essential to this research works, which provide the foundation on which this research is built. The study also reviewed range of related literature available, and it presents the theoretical framework that defines the basis for this research. Therefore, this chapter is basically on the conceptual, theoretical and empirical literature.
Historical Background of the Case Study
Central Banks worldwide simply refer to a central monetary authority or an apex financial institution within the entire financial structure promoting monetary stability and a sound financial system. The world of Central Banking is one of a variety of structures, functions and powers, which are in themselves by-product of the economic, political and other realities prevailing in a society.
The Central Bank of Nigeria, Lagos Office Historically, prior to the establishment of Central Bank of Nigeria by the CBN Act of 1958, there existed a body known as the West African Currency Board (WACB). This Board, which was established by the then British Colonial Government, was intended to serve as a Central Bank for the Anglophone West African countries. Thus, the board was charged with the primary responsibility of issuing the West African Pound, which served as the legal tender currency in Ghana, Nigeria, Sierra-Leone and Gambia.
Another function performed by WACB was the management of the reserves held in trust for these colonies. Such reserves were invested by the board on behalf of the West African countries as instruments in the London Money Market. The weakness of the board for which it was criticized is as follows:
- It carried on commercial banking activities alongside other commercial banks.
- The board lacked the basic apparatus to control the supply of money
- The board got involved in physical distribution of currency from one point to another
- Its activities were considered discriminatory against indigenous West African industrialist.
- It was not on the development of the colonies and most of its activities were based on commerce and trade.
These factors led to the widespread agitation for indigenous Central Banks in the area. The Central Bank of Nigeria (CBN) is the apex regulatory authority of the financial system in the country. It was established by the CBN Act of 1958 and commenced operations on July 1ST, 1959. The promulgation of the CBN decree 24 and Banks and other financial institutions (BOFI) Decree 25, both in 1991 gave the bank more flexibility in regulation and supervision of the banking sector and licensing finance companies which hitherto operated outside any regulatory frame work.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter explores the methodology employed to carry out the study. It also discussed the research design, methods and sources of data collection, research population, sample size and others.
Research Design
The research design used for the study is the survey method which seeks to describe the existing status of what is being investigated; it will also help the study to know where the variables were gotten and how the objectives could be achieved. The research design includes the research population, research sample plan, method of data collection, procedure for data collection and techniques of data analysis
Study Population
The research population of this study is the Nigeria economy which denoted by population around Federal Polytechnic Bida, Niger State.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
Introduction
This chapter basically presents data collected through the administration of questionnaires, analysis conducted and interpretation of the various analyses carried out.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
Introduction
This chapter presents discussion, conclusion and recommendations of the study based on the objective of the study.
Summary of Findings
The findings investigated the impact of cashless society on emotional value and the significance of money. The findings in this research work as derived by the researcher are as thus;
It is observed that cash transfer from automated teller machine affects gross domestic product and the value of point of sale affectsgross domestic product. It is found out that cashlesspolicy made it easy for people to transfer money from one account to another electronically, but network issues occasionally disrupt the payment thus forcing customers using other means. The study revealed that there is a negative consequence associated with the high usage of physical cash in the economy. It was discovered that POS machine or paybill can easily be obtained.
Findings showed that bank educates or sensitizes customers about electronic banking methods available, network challenges possessed hindrances to the success of electronic banking in Nigeria, and the study also revealedthat electronic banking is properly secured since hackers do not have easy access.
The researcher found out that investment done relating to cashless payments have resulted to increased sales. It also helped to determine that benefits associated with cashless payments outweigh the costs of cashless payment systems.
It was discovered that introduction of different payment methods will allow customers to select their preffered option and likely in increase sales. During the investigation, the researcher also discovered that investments done relating to cashless payments have reduced operational costs.
Conclusion
Based on the data collected from the field survey and various literature review on the research work, it is necessary to reach conclusion on the findings.
There is significant relationship between values of cash transfer from automated teller machine and gross domestic product which implies that the higher the value of cash transferred from automated teller machine,the better the gross domestic product.
Also, there is significant relationship between values of point of sale transactions on gross domestic product meaning that as the value of point of sale transactions increases, gross domestic product also increases.
Recommendations
From the findings and conclusions of the study the following were recommended:
- There is need for an increase in installation of more automated teller machine in the country and particularly Bida, Niger State. This will in turn increase the gross domestic product.
- The cost associated with transacting with point of sale terminals should be reduced so as to encourage e-banking policies thereby increasing the gross domestic product.
- Network challenges which possess hindrance to the success of electronic banking should be properly rectified so as to aid or ease the effective functioning of electronic banking system in Nigeria which will in turn increase the gross domestic product.
- Banks should continueto educate customers on the usage of electronic banking system
REFERENCES
- Ajayi, S.I. (2014). Money and Banking: Analysis and Policy in the Nigeria context, (Second Edition), University of Ibadan, Daily Graphics Nigeria LTD.
- Akhalumeh, P.B. &Ohiokha, F. (2012). Nigeria’s Cashless Economics: The imperative international journal of management and business studies vol.2 pg. 12- 17.
- Alagh, J.L. &Ene, O. (2014). Impact of Cashless Banking on Banks’ Profitability (Evidence from Nigeria).Asian Journal of Finance and Accounting, 6(2)362-376
- Alolonu, D. B. (2012).Replacement of cash by cards in U.S. Consumer Payments, Journal of Economics and Business, 56, 211–225.
- Ashike, H. (2011). Cashless Economic can Reduce Risk of Carrying Huge Cash. [Online] Available: http://www.businessdayonline.com
- Babalola, R. (2016). E-payment: Towards a Cashless Economy: A keynote address of the Finance Minister of State at Card Expo Africa Conference http://www.nigeriavillagesquare.com
- Central Bank of Nigeria (2012).Money Market Indicators& Money and Credit Statistics, CBN Statistical Bulletin, CBN Publications.
