Empirical assessment of the effects of cashless policy on financial inclusion in the Nigerian emerging economy

Abstract

The present study examined the effects of cashless policy on financial inclusion in the Nigerian emerging economy. The necessary data were collected from the Central Bank of Nigeria Economic Reports as well as Statistical Bulletin and the ordinary least squares method was applied to analyze the data. The findings reveal that the cashless policy maintained a non-significant relationship with financial inclusion both in urban and rural areas of Nigeria. The findings show that the cashless policy had a significant effect on increasing customers’ deposits in commercial banks of Nigeria. Volume of Automated Teller Machine (ATMVL) maintains a positive and significant effect on financial inclusion indicators in urban center compared with the rural areas. Volume of Point of Sales (POSVL) shows more significant and positive influence on financial inclusion in urban area than the rural area. However, Web Based Technique (WBTVL) reveals a non-significant effect on financial inclusion both in urban and rural centers. The study therefore recommends that more branches of commercial banks and ATM centers/outlets should be opened in rural urban centers with efficient network systems and security in order to enhance banking penetration and by extension effectiveness of the financial inclusion and poverty reductions.