The Impact of Mobile Banking Transactions on the Nigerian Economy
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Abstract
The paper explored the impact of mobile banking transactions on the performance of the Nigerian economy using quarterly data (2010 to 2024) from the Central Bank of Nigeria Bulletin. The study focused on Automated Teller Machine transactions, Point of Sale transactions, Mobile Payment transactions, and Internet Banking transactions as key dimensions of mobile banking transactions, while Real Gross Domestic Product served as the measure of economic performance. An ex post facto research design was adopted, and the analysis was conducted using descriptive statistics, unit root tests, cointegration test, and the error correction model to capture both short run and long run association among the variables. The cointegration test confirmed the existence of a long run equilibrium relationship among electronic payment variables and economic performance. The Vector Error Correction results revealed that Automated Teller Machine and Point of Sale transactions exerted positive and statistically significant effects on Real Gross Domestic Product, while Mobile Payment transactions showed a substantial adverse outcome on the short run and Internet Banking transactions exhibited a negative but statistically insignificant effect. The error correction term was negative and statistically significant, indicating a strong speed of adjustment toward long run equilibrium. Diagnostic tests confirmed the absence of serial correlation and the stability of the model. The study concluded that mobile banking transactions significantly influence Nigeria’s economic performance, although their impacts vary across platforms. It recommended optimisation of ATM and POS operations, improvement of mobile payment infrastructure, expansion of internet banking adoption, and stronger regulatory support for digital financial services.
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Copyright (c) 2026 Millionaire Fidelis, Oyakegha, Ekiyeghazi Samuel (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
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