Impact of E-Banking Reform on the Nigerian Economy

Abstract

This paper assesses the impact of e-banking reform on the Nigerian economy by examining relationships between the e-banking proxies and economic growth in Nigeria using a regression model. The study employed gross domestic product as proxy for economic growth, while value of transactions on Point of Sales (POS), value of transactions on Automated Teller Machines (ATM) and Bank Verification Number (BVN) policy were proxies for e-banking. The results revealed that there was a positive and significant impact of ATM on economic growth and a positive and significant impact of BVN on economic growth. There was, however a negative and significant impact of POS on economic growth. This indicates that e-banking made positive contributions to the economy during the period under study. The implication of these findings is that e-banking has the potential to further contribute to the Nigerian economy. The banking sector and policy makers should embark on massive and aggressive campaigns to create more awareness on the benefits of e-banking and also increase the usage of e-banking platforms by making them more available and accessible especially in the rural parts of the country. The populace should also be educated on safety measures to observe so as to get the maximum benefits of e-banking.