Nigeria Cashless Economy Policy: Implications for Economic Development and Efficient Allocation of Government Resources

Abstract

This paper investigates Nigeria Cashless Economy Policy: Implications for Economic Development and Efficient Allocation of Government Resources. The correlation research method was adopted for the study to ascertain the relationship between variables in the study. A correlation research design measures a relationship between two variables without the researcher controlling either of them. The study obtained data from both primary and secondary sources. The Pearson Product Moment Correlation (PPMC) analysis was used to answer the research questions, while the Pearson Test of Significance was used to test the hypotheses at 0.05 alpha level. The study findings revealed the followings there is a significant relationship between cashless policy and the development of the Nigerian economy. The study further shows that there is a significant relationship between relationship Cashless economy and reduction of corruption in the economy. Based on the findings the study concluded that The cashless policy initiative of the Central Bank of Nigeria is a move to improve the financial terrain of the economy .Therefore the CBN should always carry out stakeholder engagement sessions for key groups that will be most impacted by the cash policy as a first stage of its planned communication campaign, with the objective of creating awareness and providing an opportunity for stakeholders to raise issues and get on the spot clarifications. These stakeholders include markets, associations, professional bodies, religious bodies etc. These stakeholder sessions would strengthen the policy such that corrupt elements in the economy cannot leverage on poor sensitization to distort effective implementation of the development driven monetary policy. The needed financial infrastructures that drive cashless economy should be provided and regulated through effective legislations.