IMPACT OF ELECTRONIC MONEY TRANSACTION ON PRIVATE SECTOR CREDIT CROWTH IN NIGERIA

Inuwa Mohammed, Bobbo Salihu

Abstract


The study examined the impact of electronic money transaction on private sector credit growth in Nigeria.  Annual data from 2009 to 2020 were collected from CBN Statistical Bulletin.  Johansen co-integration, causality test and Ordinary Least Squares (OLS) were used to test the long run causality between electronic money transaction, automated teller machine, point of sale, internet banking and value of cheques in relation electronic money transaction.  The result shows that ATM, POS and INT have a positive and significant impact on electronic money transaction which in turn translates to economic growth.  While the result of VOC is not statistically significant at 5%.  The study reveals that all the variables are stationary at first differenced I(1) of conducting a unit root test.  Therefore, the study found a positive and significant impact of electronic money transaction on private sector growth in Nigeria.  This study concludes that electronic money transaction contributes immensely to private sector growth in Nigeria.  Based on this finding, it is suggested that policy measures should focus more on stimulating the services of point of sale, internet banking, enhancing automated teller machines, improve on the value of cheques and other monetary policies for rapid private credit growth in Nigeria.

Keywords


Value of Cheques, ATM, POS and INT

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