IMPACT OF CASHLESS POLICY ON THE PROFITABILITY OF NIGERIA BANKING INDUSTRY

Abstract

These study examine the impact of cashless policy on the profitability on Nigerian Banking industry using selected deposit money banks in Nigeria from 2012-2018. This study investigated the Returns on Equity of Banks following the adoption of Cashless policy in Nigeria: 2012-2018. The research design used was ex post-fact. The data was sourced from the annual report of selected deposit money bank and Central Bank of Nigeria (CBN) annual report. Regression analysis was used to analyze the data. The analysis was carried out using in statistical Package for Social Sciences (SPSS). The empirical result revealed that there is no significant relationship between return on equity and POS transactions with a p-value of 0.840, also it revealed that there is no significant relationship between return on equity and automatic teller machine transactions with a p-value of 0.653. The study also revealed that there is no significance relationship between return on equity and web transactions in banks with p-value of 0.888. One of the findings of this work is that cashless policy has no significant impact on Return on equity. These study function shows that cashless terminals does not improve Returns on the Equity of deposit money bank. The study recommend that dealings charges ought to be more reviewed to a little or no charge at all, to encourage more patronage of e-payment platforms while CBN, Deposit money banks (DMBs), and alternative non-banks monetary establishments ought to give public enlightenment and awareness programs which will produce awareness and encourage the unbanked people into the banking industry particularly those within the informal sector in Nigeria.