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Cash less Policy and Economic Effects: A Review of Lagos State

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  • Kenneth Enoch Okpala

Abstract

The use of physical cash as a medium of exchange apart from its numerous weaknesses is also out of date with the global economic development, hence the CBN cashless policy to keep pace with trend. This study investigated the influence of cashless policy on the economy of Lagos State. The population consists of the randomly selected 220 employees and customers of the 22 money deposit banks in Nigeria with either head office or branch in Lagos as at April, 2014 and response rate achieved was 176 representing 80%. A cross-sectional survey research design was employed and structured questionnaire was developed to elicit primary data from the respondents. The instrument was validated by experts and exploratory factor analysis (EFA) was conducted for the reliability test with the aid of Cronbach‟s Alpha reliability coefficients. The test obtained for all constructs of the instrument ranged from 0.701 to 0.810. Data elicited was analyzed using descriptive statistics, simple bivariate and multivariate regression analyses to confirm the hypotheses of the study. The findings revealed that the relationship between cashless policy and quality of banks‟ services to customers (r=0.639, p=.000); bank cash robbery (r=0.711, p=.000); and cost of bank service provisions (r=0.0522, p=.000) in Lagos state positively correlates and are statistically significant. It was concluded that cashless policy has positively predicted economic development in Lagos state. The study recommended that both the private sector and the government should improve on infrastructure to enhance e-payment system and cashless policy be extended to parts of the country to achieve a cashless economy© 2013 Int. j. econ. manag. soc. sci. All rights reserved for TI Journals.

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  • Kenneth Enoch Okpala, 2015. "Cash less Policy and Economic Effects: A Review of Lagos State," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 5(4), pages 286-297.
    • Handle: RePEc:rss:jnljms:v5i4p5
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    References listed on IDEAS

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    1. Humphrey, David B., 2004. "Replacement of cash by cards in US consumer payments," Journal of Economics and Business, Elsevier, vol. 56(3), pages 211-225.
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    3. Nicolas Barbaroux, 2007. "Woodford and Wicksell: a cashless economy or a moneyless economy framework ?," Post-Print ujm-00176473, HAL.
    4. Olajide, Victor C., 2012. "Cashless banking in Nigeria and its implications," MPRA Paper 38096, University Library of Munich, Germany.
    5. Atanda, Akinwande A. & Alimi, Olorunfemi Y., 2012. "Anatomy of Cashless Banking in Nigeria: What Matters?," MPRA Paper 41409, University Library of Munich, Germany.
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