Electronic payment system and the implementation of a cashless policy in the Nigerian economy: an overview

Abstract

This study investigates the role of electronic banking in driving Nigeria’s cashless policy and its broader impact
on the financial sector between 2023 and 2025. Anchored on the Technology Acceptance Model (TAM) and the
Innovation Diffusion Theory (IDT), the study explores how user perception, technological infrastructure, and
social influence affect the adoption of e-banking services. Data drawn from industry reports and recent empirical
studies reveal a significant surge in electronic transactions, with values increasing from ₦600.36 trillion in 2023
to ₦1.07 quadrillion in 2024, highlighting growing reliance on digital channels. Despite this growth, the policy’s
implementation exposed critical challenges, including rural cash shortages, digital illiteracy, weak
cybersecurity, and infrastructural gaps. The findings indicate that while e-banking has enhanced efficiency,
financial inclusion remains uneven. The study recommends upgrading ICT infrastructure, strengthening
cybersecurity, promoting financial literacy, and encouraging fintech-bank partnerships. A phased policy
approach is also advocated to reduce implementation shocks. These measures are essential to unlocking the full
potential of Nigeria’s cashless economy and ensuring equitable digital financial inclusion.