Financing nigerias economic growth economic confidential. Few sectors in addition like consumer and industrial goods. It prescribed a cash handling charges on daily withdrawal above five hundred thousand naira n500,000. Nigeria abstract the paper discussed the effects of cashless policy on the nigerian economy, how it was kickstarted in lagos, means of payments both manual and electronic, positive and negative effects of cashless policy, benefits to the economy and stakeholders, suggestions were made. The impact of central bank of nigeria cashless policy in nigeria economy. Force people to convert their savings into consumption andor investment, thereby providing a boost to gdp and employment. Challenges to economic growth in nigeria michael amati jose ardavin jeanette fershtman 14 may 2004.
The central bank of nigeria encourages the dissemination of its work. From the illustration above, odior and banuso 2012 argued that nigeria just left the real cash economy to cashless economy where there is still conglomeration of cash handling and electronic means in the economy and with time move to cashless economy where every transaction or most of the transactions in the economy will be done without. Latest nigerian economic and political news nairametrics. The need to critically analyze the efficiency of capital market on the nigerian economy for. Nigeria recently changed its economic analysis to account for rapidly growing contributors to its gdp, such as telecommunication, banking and its film industry, as a result of this statistical revision, nigeria has added 89% of its gdp, making it the largest african economy. A catalogue record for this publication is available from the. That the turmoil in the global economy has taken a toll on the nigerian economy is no longer a matter of contention. Ogubunka 2007 posits that the nigerian economy, like other economies, is organically linked to the growth of the financial system. Most less developed countries ldcs like nigeria are on the transition from a pure cash economy to cashless one for developmental purposes.
The effect of devaluation was salutary as nigerias foreign exchange reserves grew by 773. Market orientation and the response of uk financial services companies to changes in market conditions as a result of ecommerce, international journal of. For diverse stakeholders in the economy, the federal governments recent currency swap deal with china holds both bright prospects and grave implications for nigeria even as the naira inched up against the dollar at the weekend at the parallel market. The economic reforms and prudent policies have contributed to the consolidation of. Fusionner pdf combiner en ligne vos fichiers pdf gratuitement. Overview of the nigerian economy economic and social environment since 2003, the government of nigeria has sustained farreaching economic reforms at the federal level, particularly in public finance management, and the financial sector.
Economy gdp per capita perceived roi for investors actual return for investors. Fusionner pdf combinez des fichiers pdf gratuitement en ligne. Nigeria, as one of the developing countries, is lacking behind in reaching the expected level in global economy and banking system, so there is a need to improve on the banking system and any. Some studies have found small but statistically significant gains, others small losses. Federal university of technology owerri, nigeria and federal polytechnic nekede, owerri abstract the objective of this study is to examine the impact of capital market on economic growth in nigeria. Accordingly, nigeria has been in a recession since 2012, when economic output declined to suboptimal levels chart 2. Since nigeria gained her independence in1960, there have been different constitutional reforms, change in economic and banking policies mainly aimed at stabilizing the economy, enhancing social welfare and. The countrys huge infrastructure deficit underscores the need for capital mobilisation required to finance activities and ensure sustainable growth, writes obinna chima.
Against the backdrop from some quarters that president muhammadu buharis administration introduced treasury single account tsa as part of its anticorruption agenda campaign after its inauguration. One difficulty in the differential efficiency theory is that if carried to its extreme, it would result in only one firm in the economy, indeed. Substantially constrain the parallel economy, particularly in illicit activities. Neighboring countries include benin, cameroon, chad, and niger. Abraka nigeria ibubune, rogers onoriode first bank of nigeria ltd, sapele branch, delta state nigeria abstract. The concept epitomizes the current economic scenario where virtually all countries of the world have been severely affected.
Enable the adoption of new wirelesscashless technologies. The effect of merger and acquisition on the performance of banks in nigeria ajayi lawrence boboye obisesan oluwaseun grace department of banking and finance, faculty of management sciences, ekiti state university, adoekiti, nigeria. So i can see why the governor of the central bank of nigeria cbn was calling for a cashless economy. The geography ranges from southern coastal swamps to tropical forests, woodlands, grasslands, and semidesert in. It is in this regard that the central bank of nigeria cbn introduced the cashless policy with the objective of promoting. In advanced economy like the united states, the use of cash for purchasing consumption goods has declined since 1980 humphrey, 2004. How delayed justice hobbles nigerias economic growth. The impact of central bank of nigeria cashless policy in. According to a 2014 survey by efina on access to financial services in nigeria, there are 93. Of the rural population, about half are financially excluded, 28. Effects on the economy 151 corporate control via takeover, 20 percent via merger jensen and ruback 1983. The eleven distribution companies in nigeria have requested to increase their tariff to reflect the operating. Overview of the nigerian economy african development bank. Cashless policy and economic activities in developing.
Effectiveness of naira devaluation on economic growth in. Cashless economy aims at reducing the amount of physical cash circulating in the nigeria economy and thereby encouraging more electronicbased transaction. Effects of money laundering on the economy of nigeria. The average return to the bidding firms shareholders is less clear. The research will also show the effect of the treasury single account on the gross domestic product of nigeria. However, the cost of cash to nigeria financial system is high and increasing. According to central bank of nigeria cbn, 2011 the policy is expected to. The central bank of nigeria recently pegged a limit of daily cash withdrawal and lodgment with commercial banks by any individual and corporate customer to n150,000. The key determinants of inflation in nigeria are traceable to such variables as government expenditure, money supply, and interest rate. Whichever way you look at it, and regardless of economic definitions and rhetoric, we are in a recession. The economic effect of money laundering in nigeria is enormous. As part of our ambition to be one of the best 20 economies before the year 2020, cbn informed the world that nigeria would commence the process of changing to a cashless economy by january 2012. Nigeria is a country located in west africa with a coast on the gulf of guinea and the atlantic ocean. The impact of the cashless policy on economic growth of.
Note that this would be a social gain as well as a private gain. Get free research paper on the impact of the cbn cashless policy on the development of the banking sector of nigeria project topics and materials in nigeria. A longerterm economic development program is the united nations unsponsored national millennium goals for nigeria. The current economic situation in nigeria can best be described as very turbulent with the problems reflecting more in the financial service sector. Theoretical background cashless economy is not the complete absence of cash, it is an economic setting in which goods and services are bought and paid for. Request for permission to reproduce portions of it should be sent to the director of research, research department, central bank of nigeria abuja. Constraints to the achievement of nigerias ambition to be among the top 20 economies of the world by year 2020 is the fact that the nigerian economy is too heavily cash oriented in transaction of goods and services which is not in line with global trends. This makes the country to be heavily cash based economy. Effects of mergers and acquisitions on the economy.
It is expected that its impact will be felt in modernization of nigeria payment system, reduction in the cost of banking. Nlng and the nigerian economy nigeria lng home page. Nigeria lng limited is the most significant arrowhead of the federal governments quest to eliminate gas flaring and derive value from the countrys 187 trillion cubic feet of. Cashless nigeria is a policy established in the year 2012 by the central bank of nigeria to curb excesses in the handling of cash in the nigerian federation. Preface why the central bank of nigeria made the cashless policy. Hence, most ldcs less developed countries like nigeria are on the transition from a pure cash economy to a. The level of efficiency in the economy would be raised by such mergers.
In nigeria, for example, the regulation on merger and acquisition began in 2004 when the central bank of nigeria cbn governor, prof. In the capital market, banks are the major valuable assets for investors. In this report, ramon oladimeji highlights the negative impacts of slow justice administration on commercial ventures in nigeria for worldrenowned nigerian born juju music maestro, sunday adeniyi. Nigerias other sectors like infrastructure, oil, gas, mining, and telecommunications. Overview of the nigerian financial sector and economy. It is the second largest economy in africa, and is a regional power that is also the hegemon in west africa wikipedia, 2010. This is approved for students in accountancy, business, computer science, economics, engineering, arts. The economy of nigeria is one of the fastest growing in the world, with the international monetary fund projecting a growth of 9% in 2008 and 8. Globally, the relationship between the financial system and development remains very critical for any economy to realise its potential. This paper is organized into six sections, including this introductory section. The main reason for the policy was to reduce the amount of. It seems safe to conclude that the bidders shareholders approximately break even.
Spearheaded by the announcement by the central bank of nigeria on july 6, 2004 about a major reform program that would transform the banking landscape of the country, an unprecedented process of merger and acquisition had taken place in the nigerian banking sector. The effect of cashless policy, saving and bank credit on nigerian deregulated economy suberu o. The crisis, which has ravaged many economics around the world has caused noticeable imbalance in nigeria. Quantitative analysis of the impact of exchange rate. Nigerias revealed rebased gdp figures for 20 showed 89% jump in.
Cashless economy does not refer to an outright absence of cash transactions in the economic setting but one in which the amount of cashbased transactions are kept to the barest minimum. Implication of nigerias currency swap deal with china. The government is targeting economic growth of 10 percent for 2011 but the imf projects nigeria s economy to grow at 7. Implication of treasury single account on nigeria economy. The transformation of the financial sector of the nigerian economy has always occupied a cardinal position in the economic. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. Under the program, which covers the years from 2000 to 2015, nigeria is committed to achieve a wide range of ambitious objectives involving poverty reduction, education, gender equality, health, the environment, and international development cooperation. He wants to reduce cost involved in minting our naira as much as possible. Lagos state accounted for 85% of pos and 66% of cheques transaction in nigeria. Nigeriaas aim to be among the biggest economy by 2020 has driven her to gradually move from a pure cash economy to a cashless policy.
In 1977 it became the nigerian stock exchange, with branches established in some of the major commercial cities of the country with lagos as the head office of the nigerian nigerian stock exchange and economic development abstract. In nigeria as it is in many developing countries, cash is the main mode of payment. In its efforts to rescue the nigerian economy from the brinks of total. The effect of merger and acquisition on the performance of. It is an economic system in which transactions are not done predominantly in exchange for actual cash daniel, d. The study adopts a timeseries research design relying extensively on secondary data covering 1985 2012. Greener journa l of internet, inf ormation and com munication sy stems vol. Effect of cashless monetary policy on nigerian banking.
Imperatives of advancing a cashless nigeria nigeria. Combines pdf files, views them in a browser and downloads. With respect to the structure of the nigerian economy as well as the inflationary trend in nigeria, the inflation function adopted in this study is largely related to the dynamic factors of economic development. Unemployment rate and poverty ratio the strong growth of the nigerian economy has not translated into job creation. Table 1 shows the view of respond ents on benefits of cashless economy in nigeria. The nigeria capital market has more influence in sectors of the economy than others. In november the central bank 2014, of nigeria cbn among other things moved the bench mark interest rate called monetary policy rate from 12 to per cent, and. All that matters now is the strategies and policies implemented to bring the economy out. Based on the data released by the national bureau of statistics, headline inflation in nigeria rose by 15bps to 12.