Effect of Cashless Policy on Deposit Money Banks Profitability in Nigeria

Main Article Content

Clem Nwakoby
Kenechukwu Origin Chukwu
Ezekiel Okoh Oghenetega


The effect of cashless policy on deposit money banks is expected to increase the profitability of banks; it lowers the operational costs and curbs corruption. As such this study tends to ascertain the effect of cashless policy on deposit money banks profitability in Nigeria from 2009 to 2019. Secondary data from the Statistical bulletin of Central Bank of Nigeria was used in the study and the ARDL Auto-regressive Distributed lag model was used as a method of data analysis. The explanatory variables are Point of Sale (POS) Terminal, Automated Teller Machine, Mobile Banking, and Web Payment while the dependent variable is Profit before Tax. The result from the research indicates that cashless policy has a negative and insignificant effect on profit before tax of deposit money banks in Nigeria within the study period. The study, therefore, makes the following recommendations; banks should educate their customers more on the importance of cashless policy and some of the innovative products they are bringing in the market. They should also improve their financial infrastructure. Power generation and distribution should be improved upon as no electronic banking can take place without adequate power supply. Banks should set up appropriate security processes and use up to date programs to limit the effects of fraud on their products.

Cashless policy, mobile banking, NEFT, e-Bills, automated teller machine, co-integration relationship.

Article Details

How to Cite
Nwakoby, C., Chukwu, K. O., & Oghenetega, E. O. (2020). Effect of Cashless Policy on Deposit Money Banks Profitability in Nigeria. Asian Journal of Economics, Business and Accounting, 19(4), 48-63. https://doi.org/10.9734/ajeba/2020/v19i430312
Original Research Article


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