Angela Ngunan Atsanan
Department of Banking and Finance,
Faculty of Management Science,
Federal University Lokoja, Kogi State
&
Mathew Ekundayo Rotimi
Department of Economics,
Faculty of Social Sciences,
Federal University Lokoja, Kogi State
For correspondence, email: angela.atsanan@fulokoja.edu.ng ||
mathew.rotimi@fulokoja.edu.ng
Abstract
This study examines the impact of electronic payment systems on Nigeria’s economy, focusing on selected Deposit Money Banks (DMBs) between 2012 and 2022. It assesses how platforms such as mobile money, internet banking, ATMs, and POS terminals influence GDP growth. The study adopts a quantitative approach, using secondary data from the Central Bank of Nigeria(CBN), National Bureau of Statistics (NBS), and financial reports of selected DMBs. Descriptive statistics, trend analysis, and multiple regression techniques were employed to evaluate the relationship between electronic payment volumes and GDP growth. Findings show remarkable growth in electronic transactions over the period. Mobile money transactions increased from 2,297,688 in 2012 to 1,926,293,135 in 2022, while internet banking transactions reached 14,063,927,436 in 2022. ATM and POS transactions also expanded significantly, reflecting increased adoption of digital payments. However, GDP growth fluctuated, peaking at 6.67% in 2013 and declining to –1.79% in 2016, with an average growth rate of 2.60%. Regression results reveal a strong positive relationship between electronic payment transactions and GDP growth. Nevertheless, an R-squared value of 0.54 indicates that electronic payments explain 54.4% of GDP variations, suggesting other macroeconomic factors are influential. The study concludes that while electronic payments enhance economic performance, sustained infrastructure investment is recommended for a robust and secure digital payment ecosystem in Nigeria.
Keywords: Deposit money banks, Digital Banking, GDP and Infrastructures
