Nigerian Journal of Banking and Financial Issues (NJBFI)

EFFECT OF DIGITAL BANKING ON ECONOMIC GROWTH IN NIGERIA (2009-2023)

Abstract

The study examined the effect of digital banking on economic growth in Nigeria. The specific objectives are to: examine the effect of automated teller (ATM) machine; analyse the effect of point of sale (POS) and evaluate the effect of mobile (MOBILE) banking on economic growth in Nigeria from 2009 to 2023. The study was arranged through ex-post facto research design, through which secondary data on ATM, POS, Mobile banking and real gross domestic product are sourced and obtained from Central Bank Statistical Bulletin. The data were analysed using regression analysis which involved ordinary least square estimate. The results indicate that point of sale (POS) and automated teller machine (ATM) have positive and significant effect with their p –values at 0.0502 and 0.0171 respectively on economic growth, while mobile banking has no significant effect with a p-value of 0.110) on economic growth in Nigeria. The overall model is significant (Adjusted R²is 92%), which implies that the model is not bias. The study concluded that digital banking has positive and significant effect on economic growth in Nigeria. Hence, the study recommended that Central bank of Nigeria should make more public awareness on digital banking in the country.