Effect of Electronic Payment on the Nigerian Economy

The objective of this paper was to determine the effect of electronic payment system on the Nigerian economy. This study adopted the ex-post-facto research design to determine the causeeffect relationship of electronic payment and the Nigerian economy. The dependent and independent variables were observed over the period, 2009 to 2020. The same data were analyzed and tested using econometric analytical technique to determine the impact of the independent variable (electronic payment proxied by ATM payment, POS payment, Web payment and mobile money transfer payment) on the dependent variable (Nigerian economy proxied by Gross Domestic Product). Data were tested using the E-view statistical software adopting the Ordinary Least Square (OLS) method on the regression model adopted. The signs and significance of the regression coefficients were relied upon in explaining the nature and influence of the independent variable on the dependent variable as to determine both magnitude and direction of impact. The hypotheses were tested at 0.05 (5%) level of significance. Results from the study revealed that automated teller machine (ATM), point of sale (POS), web payment (WEBPAY) and mobile money (MBM) payment has positive and significant impact on the Nigerian economy. Thus, electronic payment has positive and significant impact on the Nigerian economy. The study therefore concludes that, an increase in electronic payment will lead to an increase in Gross Domestic Product (GDP) and by implication economic growth. Hence, it is recommended that the Federal Government of Nigeria, through the Central Bank of Nigeria should establish policies that ensure the enhancement and sustenance of efficient electronic payment channels.