ProjectClue.com WhatsApp or Call Us

projectclue whatsapp icon07030248044

Project Topic:

THE IMPACT OF THE CBN CASHLESS POLICY ON THE NIGERIAN POPULACE - A PAIN OR A GAIN?

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   2,367 people found this useful

Project Department:

ECONOMICS UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

Mixed reactions have continued to trail the cashless policy introduced by the Central Bank of Nigeria (CBN) in January 2012. The implementation of the policy commenced in Lagos in 2012 but it was extended to the Federal Capital Territory (FCT), Rivers, Kano, Ogun, Anambra and Abia states in July 2013. While some die-hard cynics describe the policy as just another economic jargon that may not be feasible, others say it will boost the country’s economic growth in line with global best practices. The CBN cashless policy aims at reducing the amount of physical cash in circulation; thereby encouraging more electronic-based transactions in payment for goods and services (CBN, 2012).

The cashless economy policy of the Central Bank of Nigeria (CBN) has come with both pains and gains. As some are knocking it, others are hailing it.

The policy, as enunciated by the CBN, entails “cash-based transactions and stipulates a cash handling charge on daily cash withdrawals or cash deposits that exceed N500,000 for individuals and N3,000,000 for corporate bodies’’ (CBN, 2012)The former CBN Governor, MallamSanusiLamidoSanusi, explained that the cashless economic policy was designed to promote financial intermediation and financial inclusion, while minimizing revenue leakages and eliminating incidence of robbery. It will also reduce the amount of cash payment and encourage electronic payment (Berentsen, 1998). He further explained that the policy became imperative because the cost of cash and associated risk of cash-driven economy to Nigeria’s financial system was ever increasing.

The policy on withdrawal allows individual customers to make a free cumulative withdrawal of N500, 000 daily across the counter and ATM. Withdrawal above the free limit will attract processing fee of three per cent for every N1, 000 above the limit. Many Nigerians considered this as not good enough as these extra charges is seen as a means of extortion. However, many individual costumers might need more than N500, 000 in day for one purpose or the other because the citizens are already used to the system of going about with cash and this has been considered as one of the pains of the cashless policy.

Also, according to the statement by the CBN, corporate customers are allowed to make free cumulative withdrawal of N3,000,000 daily. Withdrawal above the free limit will attract a processing fee of five per cent for every N1,000 above the limit.The policy on lodgment allows individual customers to make a free cumulative lodgment of N500, 000 daily. Lodgment above the free limit will attract processing fee of two per cent for every N1, 000 above the limit. Also, corporate customers are allowed to make free cumulative lodgment of N3, 000,000 daily. Lodgment above the free limit will attract a processing fee of three per cent for every N1,000 above the limit. This has been seen has stringent rules in some quarters (Ajayi&Ojo, 2006).

The apex financial institution in Nigeria has provided appropriate mechanism for e-payment which has been deployed to facilitate the smooth running of the cashless scheme. The listed mechanism includes Point of Sale (POS) Terminals, Automated Teller Machine (ATM), Web, Mobile Phones, Internet Banking, among others. Several Nigerian considered these mechanisms as not convenient and not easy to operate because of the level of illiteracy among the Nigerian populace.

1.2   STATEMENT OF THE PROBLEM

Despite several constraints that are there for everyone to see as to the effect of the CBN cashless policy of the Nigerian populace, there are several benefits accrued to its implementation. However, the legislative arm of government in Nigeria conceded that even though the policy could save costs in the financial sector, it did not, however, imply real sector growth. They noted that the majority of retail and commercial payments were usually made in cash by a large percentage of the population who did not operate bank accounts. They also noted that the CBN had not achieved the needed 40 percent expansion of ATMs.

It is also obvious that the financial infrastructure in Nigeria is grossly inadequate to meet the demands of a cashless society. Besides, the people’s low literacy level and the absence of constant power supply would discourage most citizens from embracing the policy and Nigerians had been variously defrauded of millions of naira through electronic transactions.

It is also important to note that most communities in the country lacked banking facilities that were designed to implement the policy. However, despite all the advantages of the cashless policy including the fact that it will save cost of printing currency notes, reduce theft and robbery etc. it is worth considering if the CBN cashless policy is a pain or a gain which is the focus of this study.

1.3   OBJECTIVES OF THE STUDY

The following are the objectives of this study:

  1. To examine the advantages of the CBN’s cashless policy.
  2. To examine the disadvantages of the CBN’s cashless policy.
  3. To identify the factors limiting the effective implementation of the CBN’s cashless policy.

1.4   RESEARCH QUESTIONS

  1. What are the advantages of the CBN’s cashless policy to the Nigerian populace?
  2. What are the disadvantages of the CBN’s cashless policy to the Nigerian populace?
  3. What are the factors limiting the effective implementation of the CBN’s cashless policy?

1.5   HYPOTHESIS

HO: The CBN’s cashless policy has no benefit on the Nigerian populace.

HA: The CBN’s cashless policy has lots of benefit on the Nigerian populace.

1.6   SIGNIFICANCE OF THE STUDY

The following are the significant of this study:

  1. The findings from this study will form a useful guide for the government of Nigeria as they will have first hand information about the pains and the gains of the CBN’s cashless policy on the Nigerian populace and make necessary reforms and amendment.
  2. This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area.

1.7   SCOPE/LIMITATIONS OF THE STUDY

This study will cover the benefits and the demerits of the CBN’s cashless policy on the Nigerian populace with a view of ascertaining if it is a pain or gain.

LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

 

REFERENCES

Ajayi, S.I., &Ojo, O.O. (2006).Money and Banking: Analysis and Policy in the Nigerian Context, Ibadan, Daily Graphics.

Asokan,N., Janson, P., Steiner, M., & Weidner, M. (2000). Electronic Payment Systems IBM Research Division.Zurich Research Laboratory, 1-16

Berentsen, A. (1998). Monetary Policy Implications of Digital Money, Kyklos, 51, (89, 117)

CBN Annual Activity Report. (2012).

Central Bank of Nigeria (CBN) Statistical Bulletin. (2012).

Get the complete project »


Instant Share On Social Media:


Can't find what you are looking for?
Call (+234) 07030248044.

OTHER SIMILAR ECONOMICS PROJECTS AND MATERIALS

A COMPREHENSIVE ANALYSIS OF THE EFFECT OF REGULATION AND DEREGULATION OF EXCHANGE RATE ON NIGERIA’S FOREIGN TRADE

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis,Abstract

CHAPTER ONE INTRODUCTION Foreign exchange is defined by Samuelson and Mordhaus (1983) “as a currency or other financial institution that allows are country to settle amounts owed to another cou...Continue reading »

A CRITICAL ANALYSIS OF OF THE IMPACT OF POPULATION GROWTH ON THE ECONOMY OF NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 70 ::   Attributes: Secondary data, Data Analysis, Abstract  ::   5376 engagements

2.1 THEORETICAL LITERATURE The nature of the relationship between population growth and economic growth has so attracted the attention of a large number of the world’s most influential thinkers ...Continue reading »

A CRITICAL ANALYSIS OF THE CONTRIBUTIONS OF COMMERCIAL BANKS TO THE ECONOMIC GROWTH OF NIGERIA

 Format: MS WORD ::   Chapters: 1 - 5  ::   Pages: 75 ::   Attributes: Questionnaire, Data Analysis,Abstract

2.0 THEORITICAL LITERATURE Reforms are predicted upon the need for reorientation and repositioning of an existing status inorder to attain an effective and efficient state. There could be fundamental...Continue reading »

A CRITICAL ANALYSIS OF THE CONTRIBUTIONS OF COMMERCIAL BANKS TO THE ECONOMIC GROWTH OF NIGERIA

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 70 ::   Attributes: Questionnaire, Data Analysis, Abstract

2.0 THEORITICAL LITERATURE Reforms are predicted upon the need for reorientation and repositioning of an existing status inorder to attain an effective and efficient state. There could be fundamental...Continue reading »

A CRITICAL ANALYSIS OF THE CONTRIBUTIONS OF COMMERCIAL BANKS TO THE ECONOMIC GROWTH OF NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 74 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   5059 engagements

2.0 THEORITICAL LITERATURE Reforms are predicted upon the need for reorientation and repositioning of an existing status inorder to attain an effective and efficient state. There could be fundamental ...Continue reading »

A CRITICAL ANALYSIS OF THE EFFECT OF DOMESTIC DEBT ON THE NIGERIAN ECONOMY

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 57 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1792 engagements

1.0 INTRODUCTION 1.1 OVERVIEW OF THE STUDY 1.2 STATEMENT OF PROBLEM The need to finance rising government expenditure has been identified to the rapid increase in the stock of Nigeria’s do...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Abubakar Sani from Nigerian Investment Promotion Commission said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 2. Ogunniran Olawale from Ekiti state university said "Projectclue is really safe and reliable Quick access to project works Nice customer service Fast delivery of request Recommend this toy fellow students ".
    Rating: Excellent
  • 3. Fahat Nasir from isa kaita college of education dutsinma said "Fish farming a solution unemployment ".
    Rating: Very Good
  • 4. Ajimbi Oluwarotimi from Theology school osun said "Good ".
    Rating: Very Good
  • 5. Clement Abdullahi Ogiji from National Open University of Nigeria said "I am a living witness and have recommended project clue to a lot of students, so far none have been disappointed, very reliable and, trustworthy and dependable".
    Rating: Excellent
  • 6. Jhuee from Sultan national high school said "Good quality. I recommend project clue for any project research work.".
    Rating: Excellent