Operationalization of the Cashless economy system in Nigeria

Abstract: This study was carried out on Operationalization of the Cashless economy system in Nigeria. Financial sector reform is an essential ingredient in the economic growth and development process.  This is clearly underscored in the literatures linking financial sector growth with economic growth. In recognition of this fact, managers of the Nigerian economy have targeted the banking sector as a channel for implementing economic policy reforms and policy shift. The recent of such economic reforms in the financial sector is the formal introduction of cash-less financial policy in January, 2012. The Central Bank of Nigeria in order to level up to the global standards began practising cashless policy in the Nigerian economy. What are the benefits and challenges of this policy vis-à-vis the cash based policy? Specifically, will other Point of Sales card acceptance services stakeholders attract a significant part of banks’ income in cash-less economy? This is the central thrust of this paper. To address this, secondary data were collected and content analysis applied in data analysis. After factoring in other POS stakeholders share of income, the study found banks’ income higher in cash-less setting than in cash based arrangement. Thus, the cash-less policy offers immense benefits to the banking sector. It is recommended that appropriate infrastructures and legal support be provided to facilitate the religious implementation of the policy.