Impact of cashless policy on the economic growth of Nigeria

More than nine years after introduction of the cashless policy by Central Bank of Nigeria in December 2011, it is pragmatic to study the impact of the policy on the economy and growth the country. Cashless policy is a government policy aimed at restricting individuals and corporate organisations from moving excessive cash for transactions. The Central Bank of Nigeria introduced the policy to reduce cash-based transactions and at reducing the quantity of physical cash circulating in the economy to encourage adaptation to electronic-based transactions. This study is to ascertain the extent to which this policy has been able to achieve its established goals and the corresponding impact on Nigerian economic growth. To determine what the direction of growth, to objectively assess if the cashless policy delivers impact or no impact on reducing cash related crime and corruption. This study utilizes secondary data obtained from the Central Bank of Nigeria Statistical Bulletin, Nigerian Stock Exchange Fact book, Securities and Exchange Commission database and from the relevant literatures to conduct a key performance analysis to identify major impacts of the cashless policy on the indicators of theset goals of the apex bank from the time of the effective implementation of the cashless policy. This is be based on the available data and findings from 2013 to 2019. It reviewed the Gross Domestic Product to determine if there are sufficient evidence to support the policy contribution to the economic growth of Nigeria and finally, impact analysis which takes into consideration changes and the social adjustments to the cashless policy since the commencement of the programme.