Electronic Payments System and Economic Growth in Nigeria

Over time, the way and manner goods and services are paid for have evolved dramatically from shells, to coins, to paper, to data capable of moving around the world in the blink of an eye. The role of electronic payments system in modern economy cannot be over-emphasized. Electronic payments are a key driver of the economy. Though the nexus between electronic payments system and economic performance has attracted attention from scholars and practitioners alike, very few studies have modeled this relationship correctly and comprehensively. This has resulted in a gap in the literature. This study, therefore, is designed to fill in this gap by investigating the relationship between electronic payments system and economic performance in Nigeria. The empirical data were collected from the Central Bank of Nigeria 2014 Statistical Bulletin and analyzed using descriptive and inferential statistics. The findings reveal that electronic payments system is positively correlated with economic performance. Results also show that external reserve is the dominant factor in the relationship with economic performance. The other factors influencing GDP show positive relationships with economic performance. The study was, however, limited by covering only six years in the selection of period of coverage, making this a possibly biased selection and it may not be adequate to generalize the results for the entire Nigeria economic performance. The study has contributed to the electronic payments system literature with a better understanding of the e-payment practices and their association with Nigeria’s economic performance that will provide valuable knowledge to economic team top-management, to refine their current practices and subsequently improve the economic performance of Nigeria.