Effects Of Electronic Payments Systems On The Economy Of Nigeria: A Pre-Covid-19 Era Ardl Analysis

This study investigated the effects of E-payment systems on the economy of Nigeria. Secondary quarterly data spanning over a period of eleven (11) years (2009-2019) contained in Central Bank of Nigeria statistical bulletin were used for this investigation. This study used ARDL model to investigate the relationship between Nigeria economy (dependent variable) and E-payment systems in terms of volume and value of transactions (independent variables) in both the short run and long run. EViews Student 11 Version Lite x64 was used to perform these analyses. In terms of volume, while results revealed non-significant relationship between the variables in the long run, Volume of Point of Sales (POSV) exhibited significant positive relationship with Gross Domestic Product (GDP) in the short run and Volume of Automated Teller Machine (ATMV), Volume of Web (WEBV) and Volume of Mobile Payment (MOPV) exhibited respectively significant negative relationships with GDP in the same short run. However, in terms of value, results established that while ATMN, POSN and WEBN exhibited non-significant respective positive and negative relationships with GDP in the long run, MOPN and @TREND exhibited significant respective positive and negative relationships with GDP in the same long run. On the contrary, only D (POSN (-3)) exhibited significant positive relationship with GDP in the short run. Findings no doubt, have both theoretical and practical implications. Practically findings established that only volume and value of point of sale transactions stimulates the growth of Nigeria economy. This study therefore recommended that to grow Nigeria economy, automated teller machine, web (internet) and mobile payment volume and value of transactions should be vigorously deepened.