chapter One

Research background

According to Ajayi et al, 2006, one of the prerequisites for national economic development is to promote safe, convenient and affordable payment systems. The world is currently moving from paper payment systems to electronic means, especially payment cards (Humphrey, 2004). For example, in most countries you can pay for snacks from a vending machine by simply dialing the number on your phone bill. In Nigeria, as in most developing countries, cash is the predominant means of payment and a large portion of the population is unbanked (Ajayi et al., 2006), so the Nigerian economy is becoming increasingly cash-based. increase.
Recently, the Central Bank of Nigeria (CBN, 2011) announced that the direct cost of cash management in 2012 was estimated at a staggering Naira 192 billion (N192 billion). Other challenges that arise as a result of heavy use of cash are:
Armed robbery and cash crime, loss of revenue due to excessive cash handling, inefficient financial management due to cash handling, large subsidies, high inflation, etc. (Akpan, 2009). Against this background, CBN introduced a cashless policy in April 2011 to encourage the use of electronic payment channels to replace cash. This must have led CBN to pilot a cashless policy in Lagos on January 1, 2012. So far, the directive’s implementation in Lagos has not produced the expected response. A nationwide rollout was therefore replaced by phased implementation in Port Harcourt, Kano, Abia, and the Federal Capital Territory (CBN, 2012). A cashless economy is one in which purchases and transactions are made primarily using electronic means and cash is rarely used. The policy, introduced by CBN in April 2011, states that individual and corporate customers are limited to his one cash withdrawal and deposit per day to N500000 and N3m respectively. Implicitly, an individual who withdraws cash in excess of the limit will be charged N100 for every N1000 he withdraws, and a corporate organization that exceeds the limit will be charged N200 for every N1000 he receives (Ezio, 2008). ).

Business will be better off with politics, according to CBN and Banking Commission. For example, cash will become less dominant in the system, reducing armed robbery and cash-related crime. This reduces cash management costs. Encourage the use of electronic payment channels and lower lending rates to make credit more accessible to businesses large and small. The Commission’s findings showed that operating a cashless economy could save CBN about N192 billion. This is the projected direct cost of cash management for 2012. Nigerians could not deny the need to keep large amounts of cash in circulation, among other benefits of the system. Many still think the cash limit is too low and wonder how CBN got the benchmark. Others express the need for a gradual transition to a new political order. Some believe that Nigeria is not yet ready. While the cashless idea is laudable, evaluating the usual inconsistencies in ATM operations leaves many possibilities for better performance in the same system. Faced with this potential threat, CBN recently directed banks and independent service providers to deploy more ATMs and ensure their efficiency to ensure smooth implementation of the Directive. . According to Siyanbola (2013), the world’s most famous channel for cashless banking is mobile he banking. online banking; telephone banking; electronic card implants; POS terminals and ATMs.

The word “mobile” is associated with the mobile business. This means the ability to access business activities anytime, anywhere in the world and managed through a computerized network. This setting allows you to track service availability. mobile phone, mobile phone
Banking includes the use of mobile phones when conducting financial transactions. This is more or less a customer-to-customer transfer process in which the funds are immediately available to the beneficiary. According to Siyanbola (2013), the card infrastructure is used not only to send payment instructions, but also to send secure SMS messages for receipt confirmation to beneficiaries. Given the low infrastructure requirements and the rapidly growing mobile phone penetration in the country, it is very popular and exciting for customers. The banking industry refers to financial services that incorporate mobile communication technology as mobile financial services. These services are therefore divided into mobile payments and mobile banking (Alex, 2010). Services covered by this product include account inquiries. transfer money; charge the phone; Changing passwords and paying bills (Tiwari & Buse, 2007).

Internet banking is a service that allows customers to conduct banking transactions on the Internet (www) using electronic devices such as personal computers without going to a counter. Internet or e-banking is also a system of processing transactions electronically using electronic devices such as ATMs, POS terminals, GSM phones, V cards, etc., by electronic holders, bank customers and other interested parties. processed (Edet, 2008). These innovations in the banking system have arguably made e-commerce much easier, especially when it comes to payments. to execute payment orders and final settlement of goods and services over the Internet. Internet banking transactions commonly used in Nigeria are the payment of commercial bills and the purchase of airline tickets through her website of a merchant or service her provider.

An electronic card, on the other hand, is a physical plastic card that uniquely identifies its owner and is used on the Internet, automated teller machines (ATMs), and point-of-sale (POS) terminals (Carow and Staten, 2000). These include debit and credit cards, with debit cards linked to local bank accounts and providing instant payment confirmation.Credit cards can be used to assess local and international networks. Since credit cards are widely accepted in most countries, the underlying infrastructure and operational rules are often provided by global escrow systems (such as Visa and Master Card) in addition to local lines.
Debit cards, also known as ATM cards, are the predominant cards in Nigeria, and their uses are broader than his POS transactions given the current limited deployment of his POS terminals.
A point-of-sale (POS) or point-of-purchase (POP) terminal is where transactions take place. POS or POP is commonly used to refer to the hardware and software used for checkout. This is equivalent to an electronic cash register. POS manages the merchant’s sales process as an accessible interface, allowing receipt creation and printing.
Automated Teller Machines are computerized devices that provide customers of financial institutions with access to financial transactions in public places without the need for the assistance of a bank teller or bank employee (Migdadi, 2008). . This is the most common form of e-banking that has gained popularity among Nigerians, including the illiterate.
Despite the aforementioned benefits of a cashless economy, these alternative payment channels still face significant challenges. According to Wales (2013), a challenge is a general term for something full of difficulties and triumphs.


According to the Global FINDEX Survey in 2011, around one-third of Brazilians and South Africans with debit cards use e-payments, compared with one in ten Nigerians:
the 2% of Nigerian adults who currently make e-payments represent a small fraction of the 19% holding debit cards (which is used as a proxy for a type of account more likely to provide e-payment functionality). Similarly, data from EFInA’s Access to Financial Services in Nigeria 2012 survey (A2F, 2012) highlight Nigerians’ limited acceptance and adoption of electronic payments and services to date, with 0.7% of banked adults using POS terminals, 0.8% of banked adults using the internet, and less than 2.5% using mobile phones for banking transactions. The policy has since been affected by many factors namely ineffective sensitization campaign exercise; inadequate protection of the interest of merchants and people in the informal sector; non availability of Point-of-Sale (POS) terminals as well as other technological challenges. Thus, these challenges have seriously affected the implementation of the policy. It is therefore the belief that the move is too idealistic in a country like Nigeria where a larger percentage of their population has low level of functional literacy skills and resides in rural areas where compelling them to travel long distances in order to use these services. It is therefore pertinent to examine the acceptability and receptivity of cashless economic policies in Nigeria.

Purpose of research

The overall purpose of this study is to determine the level of acceptance and acceptability of CBN’s cashless policy in the Port Harcourt metropolitan area. The specific goals are as follows.

1. Determine the level of acceptance and acceptance of CBN’s cashless policy in Port Harcourt. 2. Find out the advantages, benefits and implications of accepting and adopting CBN’s cashless policy in Port Harcourt

3. Identify challenges in using internet and mobile banking services/POS and shortcomings of CBN’s cashless policy in Port Harcourt

4. Identify factors that can improve acceptance and acceptability of CBN’s cashless policy in Port Harcourt.


1. What is the level of acceptance and acceptance of CBN’s cashless policy in Port Harcourt?

2. What are the advantages, benefits and implications of adopting CBN’s cashless policy in Port Harcourt?

3. What are the challenges in using internet and mobile banking services/POS and what are the drawbacks of CBN’s cashless policy in Port Harcourt? 4. What factors could improve acceptance and acceptance of CBN’s cashless policy in Port Harcourt?

1. Hypothesis

The following hypotheses were formulated to guide the study and tested at the 0.05 significance level.
The people of Port Harcourt have practically not accepted or adopted CBN’s cashless policy.
The people of Port Harcourt have clearly embraced and embraced CBN’s cashless policy.

the importance of studying

The purpose of this study is to determine the level of adoption and acceptance of the CBN cashless policy in Port Harcourt, taking into account the factors and challenges in its use as well as policy adoption and acceptance. This study therefore educates the public on policy acceptance and the need for cashless policy acceptance, and educates the public on the benefits of the policy. Additionally, the study will inform financial sector stakeholders on how to resolve issues that limit acceptance and adoption of CBN’s cashless policy.
Finally, the results of this study will increase the amount of literature in the field of CBN cashless policy acceptance and adoption.

Research scope and limitations

The study will cover the entire area of ​​Port Harcourt City Local Government in determining acceptance and adoption of CBN’s cashless policy.
research limit
The limitations experienced during the course of this research basically focus on the following issues:

1. Difficulties in obtaining relevant, relevant and reliable information from respondents – Respondents tend to provide information that researchers would like to receive, but it may not be the correct information.

2. Financial Constraints – Inadequate financial resources tend to hinder the efficiency of researchers in obtaining relevant materials, literature, or information, and in the data collection process (internet, questionnaires, and interviews). .

3. Time Constraints – Researchers will conduct this research concurrently with other academic studies. As a result, less time is spent on research work.

Definition of terms

payment – the act or process of paying or being paid to someone or something
Economy – The state of a country or region with respect to the production and consumption of goods and services and the money supply.
Transaction – A case where something is bought or sold.
Cash – Coins or banknotes as distinguished from checks, money orders, or loans.
Internet – A global computer network that provides a variety of information and communication facilities and consists of interconnected networks using standardized communication protocols.


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