Downloads

https://doi.org/10.62836/emi.v3i1.119
Zango, A. G., & Umeoji, A. R. (2024). Financial Inclusion Policies and Performance of Nigerian Listed Deposit Money Banks. Economics & Management Information, 3(1), 1–14. https://doi.org/10.62836/emi.v3i1.119
Volume 3, Issue 1, March 2024
Copyright (c) 2024 Adamu Garba Zango, Adaora Remi Umeoji
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Financial Inclusion Policies and Performance of Nigerian Listed Deposit Money Banks

The development of modern technology for financial transactions poses exciting enquiries to both the finance sector operators and policy formulators with regard to appropriateness of previous institutional measures and availability of devices that will guarantee efficiency, effectiveness and financial stability of fiscal policies. This study evaluates the impact of financial inclusion strategies on the performance of Nigeria’s banking industry. To get the intended outcome, this study employs an ex-post facto research strategy to investigate the relationship between financial inclusion and the economic performance of the Nigerian banking industry. The data utilised in this study is sourced from various secondary sources from 2009 to 2019. The study included descriptive statistics and the Ordinary Least Square method of Regression analysis. The findings of the study suggest that the adoption of Point of Sale (PoS) terminals significantly influences the overall efficiency and effectiveness of the banking industry in Nigeria. Additionally, it revealed that financial transactions conducted through Automated Teller Machines (ATMs) have a substantial impact on the Return on Equity (ROE) of the banking industry in Nigeria. On the other hand, it was determined that Mobile Money Transfer did not demonstrate a significant impact on the performance of the Nigerian banking sector. The report so suggests, among other recommendations, that the Central Bank of Nigeria should conduct a downward revision of electronic payment transaction rates in order to foster greater financial inclusion.

bank performance financial inclusion policies Nigeria

References

  1. Mamudu ZU, Gayuvwi GO. Cashless Policy and Its Impact on the Nigerian Economy. International Journal of Education and Research 2009; 7(3): 111–132.
  2. Okeke MN, Mbonu CM, Ndubuisi AN. Tax Revenue and Economic Development in Nigeria: A Disaggregated Analysis. International Journal of Academic Research in Accounting, Finance and Management Sciences 2018; 8(2): 178–199. DOI: https://doi.org/10.6007/IJARAFMS/v8-i2/4248
  3. Taiwo JN, Agwu ME. The Role of E-Banking on Operational Efficiency of Banks in Nigeria. Basic Research Journal of Business Management and Accounts 2017; 6(1): 1–10.
  4. Elechi AC, Rufus A. Cashless Policy in Nigeria and Its Socio-Economic Impacts. Public policy and Administration Research 2016; 6(10): 16–22.
  5. Ogutu M, Fatoki OI. Effect of E-Banking on Financial Performance of Listed Commercial Banks in Kenya. Global Scientific Journal 2019; 2(5): 7–34.
  6. Uchenna OG. Automated Teller and Banks Profitability in Nigeria. International Journal of Accounting and Finance Research 2015; 7(3): 21–29.
  7. Chude NP, Chude DI. Impact of Agent Banking on Performance of Deposit Money Banks in Nigeria. Journal of Finance and Accounting 2014; 5(9): 35–40.
  8. Aruwa SAS, Naburgi MM. Impact of Capital Adequacy on the Financial Performance of Quoted Deposit Money Banks in Nigeria. Nasarawa Journal of Administration 2014; 1(1): 9–17.
  9. Nwala MN, Abubakar HS. Impact of Corporate Governance on the Financial Performance of Selected Banks. Nasarawa Journals of Administration 2014; 2(3): 23–29.
  10. Andabai PW, Bina PA. Impact of Cashless Policy on Deposit Money Bank Performance in Nigeria (2000–2018). Global Journal of Education, Humanities and Management Sciences (GOJEHMS) 2019; 1(2): 1–10.
  11. Obisesan OO, Ojewumi OB, Obisesan AA. Microcredit and Farmers Productivity in Osun State, Nigeria. Asian Journal of Agricultural Extension, Economics and Sociology 2019; 31(3): 1–11. DOI: https://doi.org/10.9734/ajaees/2019/v31i330131
  12. Ighoroje EJ, Okoroyibo EE. Cashless Policy and the Performance of Deposit Money Banks in Nigeria. European Journal of Accounting, Auditing and Finance Research 2020; 8(5): 85–104. DOI: https://doi.org/10.37745/ejaafr/vol8.no5.pp85-104.2020
  13. Muotolu PC, Nwadialor EO. Cashless Policy and Financial Performance of Deposit Money Banks in Nigeria. International Journal of Trend in Scientific Research and Development 2019; 3(4): 65–71. DOI: https://doi.org/10.31142/ijtsrd23835
  14. Achugamonu UB, Adetiloye KA, Adegbite EO, Babajide AA, Akintola FA. Financial Exclusion of Bankable Adults: Implication on Financial Inclusive Growth Among Twenty-Seven SSA Countries. Cogent Social Sciences 2020; 6(1): 1–15. DOI: https://doi.org/10.1080/23311886.2020.1730046
  15. Oyelami LO, Saibu OM, Adekunle BS. Determinants of Financial Inclusion in Sub-Sahara African Countries. Covenant Journal of Business and Social Sciences (CJBSS) 2017; 8(2): 104–116.
  16. Aguera P. Financial Inclusion, Growth and Poverty Reduction. ECCAS, Regional Conference. Brazzaville, Congo, 23 March 2015.
  17. Achugamonu BU, Taiwo J, Ikpefan O, Olurinola I, Okorie U. Agent Banking and Financial Inclusion: The Nigerian Experience. The Journal of Internet Banking and Commerce 2016; 22: 1–15.
  18. Choudhury R, Bagchi D. Financial Exclusion - A Paradox in Developing Country. IOSR Journal of Economics and Finance 2016; 7(3): 40–45.
  19. Anyanwu JC, Anyanwu JC. The Key Drivers of Poverty in Sub-Saharan Africa and What Can Be Done About It to Achieve Sustainable Development Goal. Asian Journal of Economic Modelling 2017; 5: 297–317. DOI: https://doi.org/10.18488/journal.8.2017.53.297.317
  20. Adetiloye K, Adegbite E. Financial Globalisation and Domestic Investment in Developing Countries: Evidence From Nigeria. Mediterranean Journal Social Sciences 2013; 4(6): 213–221. DOI: https://doi.org/10.5901/mjss.2013.v4n6p213
  21. Chibba M. Financial Inclusion, Poverty Reduction and the Millennium Development Goals. European Journal of Development Research 2009; 2(3): 213–230. DOI: https://doi.org/10.1057/ejdr.2008.17
  22. Hick R, Lanau A. Moving in and Out of in-Work Poverty in the UK: An Analysis of Transitions, Trajectories and Trigger Events. Journal of Social Policy 2018; 2(4): 17–25. DOI: https://doi.org/10.1017/S0047279418000028
  23. World Bank. Global Financial Development Report 2015: Financial Inclusion; World Bank Publications: Washington, DC, USA.
  24. Obiekwe CJ, Anyanwaokoro M. Electronic Payment Methods and Profitability of Banking Firms in Nigeria: A Panel Data Analysis. International Journal of Finance and Accounting 2017; 6(3): 67–74.
  25. Siyanbola TT. The Effect of Cashless Banking on Nigerian Economy. eCanadian Journal of Accounting and Finance 2013; 1(2): 9–19.
  26. Kennedy O, Jacky N. The Impact of Mobile and Internet Banking on Performance of Financial Institutions in Kenya. European Scientific Journal 2013; 9(5): 56–76.
  27. Davis FD. Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly 1989; 13(3): 319–340. DOI: https://doi.org/10.2307/249008
  28. Ajzen I, Fishbein M. Understanding Attitudes and Predicting Social Behavior; Prentice Hall: Englewood Cliffs, NJ, USA.
  29. Ajzen I. From Intentions to Actions: A Theory of Planned Behavior. In Action Control; Springer: Berlin, Germany.
  30. Bátiz-Lazo B. Epilogue: The Cashless Economy and the ATM. Oxford Scholarship Online 2018. DOI: 10.1093/oso/9780198782810.003.0010. DOI: https://doi.org/10.1093/oso/9780198782810.003.0010
  31. Tilakaratna G. Financial Inclusion in Sri Lanka: Current Status and Issues. In Financial Inclusion in Asia; Palgrave Macmillan: London, UK.
  32. Gefen D, Karahanna E, Straub D. Trust and TAM in Online Shopping: An Integrated Model. Transactions on Engineering Management Journal 2003; 50(3): 307–321. DOI: https://doi.org/10.1109/TEM.2003.817277
  33. Nithin M, Jijin P, Baiju P. Has Demonetisation Pushed Digitalisation in India? Some Counter Evidences. Journal of Business Thought 2018; 9: 58–69. DOI: https://doi.org/10.18311/jbt/2018/21170
  34. Al-Tarawneh JM. Technology Acceptance Models and Adoption of Innovations: A Literature Review. International Journal of Scientific and Research Publications 2019; 9(8): 833–857. DOI: https://doi.org/10.29322/IJSRP.9.08.2019.p92116
  35. Evans O, Adeoye B. Determinants of Financial Inclusion in Africa: A Dynamic Panel Approach. University of Mauritius Research Journal 2016; 22: 13–19.
  36. Park CY, Mercado RV. Financial Inclusion: New Measurement and Cross-Country Impact Assessment. Available online: https://ssrn.com/abstract=3199427 or http://dx.doi.org/10.2139/ssrn.3199427 (accessed on 23 November 2023). DOI: https://doi.org/10.2139/ssrn.3199427
  37. Mohammed JI, Mensah L, Gyeke-Dako A. Financial Inclusion and Poverty Reduction in Sub-Saharan Africa. The African Finance Journal 2017; 19(1): 1–22.
  38. Jumba J, Wephukhulu JM. Effect of Cashless Payments on the Financial Performance of Supermarkets in Nairobi County. International Journal of Academic Research Business and Social Sciences 2019; 9(3): 1372–1397. DOI: https://doi.org/10.6007/IJARBSS/v9-i3/5803
  39. Central Bank of Nigeria Statistical Bulletin. Nigerian Financial Inclusion Strategy. Available online: https://www.cbn.gov.ng/out/2019/ccd/national%20financial%20inclusion%20strategy.pdf (accessed on 23 November 2023).
  40. Doane DP, Seward LE. Measuring Skewness: A Forgotten Statistic?. Journal of Statistics Education 2011;19(2); 1–18. DOI: https://doi.org/10.1080/10691898.2011.11889611

Supporting Agencies

  1. Funding: Not applicable.