Effectiveness of electronic banking on Nigeria’s industrial and service sector
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Date
2022
Authors
Iwegbu, O.
Nwokoma, N.I.
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Publisher
Unilag Press
Abstract
Electronic banking has indeed transformed the operational system in the banking sector and has driven financial inclusion in Nigeria’s industrial and service sector. The main aim of this study is to examine the effectiveness of electronic banking on Nigeria’s industrial and service sector between the periods of first quarter 2012 to the fourth quarter, 2020. The study employed the Autoregressive Distributed Lag Model method to estimate the long-run relationship among the variables. The result shows that only electronic transactions via the mobile payment platforms have significant impact on industrial sector output in the long run while the electronic transactions via the mobile payment platforms and ATMs have positive impact on industrial sector output. In the long run, only electronic transactions via ATMs have positive impact on services sector contribution to GDP. The study recommends that, the government should set up effective and committed agencies and initiatives that would further help boost mobile banking operations in the services and industrial sector. It is expected that these agencies and initiatives would help to accelerate mobile financial services in Nigeria which would ultimately increase the people's financial access to a greater extent in the upcoming days. Also, some of the electronic banking channels have a negative impact on the services and industrial output, this id corroborated to the unwillingness using the electronic platforms due to e-banking frauds. Thus, conscious efforts must be made by the monetary authority to ensure that each deposit money banks have effective cyber security team which would help to monitor and prevent e-banking frauds that will likely arise due to the use of electronic channels in banking transactions.
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Citation
Iwegbu, O., & Nwokoma, N.I. (2022). Effectiveness of electronic banking on Nigeria’s industrial and service sector. In J.A. Oloyode, T.M. Obamuyi, S. Mande, O.M. Ogbulu, B.O. Oke, P.N. Amah, & P.L.U. Owoloja (eds.). The frontiers of management sciences in Nigeria: A festschrift of Prof. Wilfred Chifumnanya Iyiegbuniwe (Chp. 5, pp. 95 – 116). Lagos, Nigeria: Unilag Press.