Project Materials




Need help with a related project topic or New topic? Send Us Your Topic 





According to Ajayi et al, 2006, fostering a secure, convenient, and affordable payment system is one of the criteria for national economic success. Today's world is shifting away from paper payment systems and towards electronic alternatives, particularly payment cards (Humphrey, 2004).

In most nations, for example, one can pay for a snack at a vending machine by dialling a number from one's phone bill. is the predominant means of payment in Nigeria, as it is in most poor countries, and a considerable percentage of the population is unbanked (Ajayi et al., 2006), making the Nigerian economy primarily cash-based.

The Central Bank of Nigeria (CBN) recently reported that the direct cost of cash management is expected to reach a startling N192 billion (N192 billion) in 2012.

Other issues associated with heavy cash usage include, among other things, armed robberies and cash-related crime, revenue leakage due to excessive cash handling, ineffective treasury management due to the nature of cash processing, expensive subsidy, high inflation, and so on (Akpan, 2009).

In light of these circumstances, the CBN implemented the cashless policy in April 2011, with the goal of encouraging the use of electronic payment channels rather than cash. This undoubtedly prompted the CBN to launch a cashless policy trial plan in Lagos on January 1st, 2012.

So far, the policy's implementation in Lagos has not received the expected response. As a result, a nationwide rollout has been replaced with phased implementation in Port Harcourt, Kano, Abia, and the Federal Capital Territory (CBN, 2012).

A cashless economy is one in which most purchases and transactions are done electronically rather than with cash. Individual and corporate customers are limited to a daily cash withdrawal and lodgment of N500000 and N3m, respectively,

under the policy, which was implemented by the CBN in April 2011. Individuals who make cash withdrawals in excess of the limit would be charged N100 each N1000, whereas corporate organisations will be taxed N200 per N1000 (Ezio, 2008).

According to the CBN and the Bankers Committee, the policy will benefit the economy. For example, it will lessen the dominance of cash in the system, lowering armed robberies and cash-related crimes. It will minimise the cost of cash management, stimulate the adoption of electronic payment methods, and lower lending rates, making credit more accessible to both large and small businesses.

According to the committee's conclusions, running a cashless economy might save the CBN roughly N192 billion, which is the expected direct cost of maintaining currency in 2012.

While Nigerians cannot deny the necessity to avoid excessive cash in circulation, among other benefits of the scheme, many believe the cash cap is too low and question how the CBN arrived at the benchmark.

Some argue for a gradual transition to the new policy system, while others argue that Nigeria is not yet ready. As admirable as the cashless concept is, an examination of the typical anomalies in ATM functioning leaves many stakeholders asking if the same mechanism could generate a better result.

Recognising this possible threat, the CBN recently instructed banks and independent service providers to deploy more ATMs and guarantee their efficiency in order for the programme to be implemented smoothly.

According to Siyanbola (2013), the world's most notable cashless channels are mobile banking, internet banking, telephone banking, electronic card implantation, POS terminals, and ATMs.

The term mobile refers to mobile business, which refers to the ability to access business activities anywhere and at any time in the world via a computer-mediated network. The facility enables the location of service availability. Mobile

Banking entails using a mobile phone to conduct financial transactions. This is essentially a fund transfer process between clients, with monies available to the beneficiary immediately. According to Siyanbola (2013), it employs card infrastructure for the transmission of payment instructions, as well as secured SMS messaging for receipt confirmation to the beneficiary.

Given the low infrastructure requirements and the country's fast expanding mobile phone coverage, it is immensely popular and exciting to customers. Mobile financial services are finance-related services that use mobile telecommunication technologies in the banking business.

As a result, these services are classified as mobile payment and mobile banking (Alex, 2010). This product provides services such as account inquiry, cash transfer, phone recharge, password change, and bill payment (Tiwari & Buse, 2007).

Internet banking entails doing banking transactions through the internet (www) using electronic means such as a computer, rather than visiting a banking hall.

Internet or electronic banking is also a system in which transactions are settled electronically using electronic devices such as ATMs, POS terminals, GSM phones, V-cards, and so on, which are handled by e-holders, bank clients, and other stakeholders (Edet, 2008).

These banking system advances have undoubtedly aided e-commerce, particularly in terms of payment processing. Internet banking, like mobile banking, leverages the electronic card infrastructure to execute payment instructions and ultimate settlement of products and services between merchants and customers over the internet.

In Nigeria, the most common online banking transactions are the settlement of commercial bills and the purchase of airline tickets through the websites of merchants or service providers.

Electronic cards, on the other hand, are actual plastic cards that uniquely identify the holder and are utilised in internet, automated teller machine (ATM), and point of sale (POS) terminal transactions (Carow and Staten, 2000).

This comprises debit and credit cards, with debit cards linked to local bank accounts and providing immediate payment confirmation, and credit cards used for evaluating local and international networks.

Because credit cards are widely recognised in most countries, the underlying infrastructures and operational regulations are frequently provided in addition to local lines by global trust schemes (such as Visa and Master Card).

Debit cards, often known as ATM cards in Nigeria, are more widely used than POS transactions due to the existing limited deployment of POS terminals.

A point of sale (POS) or point of purchase (POP) terminal is where a transaction takes place. A point of sale (POS) or point of purchase (POP) is the hardware and software used to check out, similar to an electronic cash register. As an accessible , a POS oversees the selling process by a salesperson while also facilitating the creation and printing of receipts.

A teller machine is a computerised equipment that allows customers of a financial institution to conduct financial transactions in public without the help of a bank teller or other bank professional (Migdadi, 2008). It is the most frequent type of electronic banking and has grown in popularity among Nigerians, especially illiterate bank customers.

Despite the advantages of a paperless economy outlined above, these alternative payment channels confront significant hurdles. According to Wales (2013), a challenge is a broad term that refers to everything that involves both struggle and victory.

Thus, there are numerous challenges involved with the implementation of the cashless economic policy among the Nigerian public, particularly among illiterate family members, those living mostly in rural regions, and the unemployed.

The Port Harcourt community is among the elite class of Nigerian society, and their positions obligate them to accept the cashless policy, despite the presence of commercial banks at their disposal. To that end, the study would assess the acceptance and implementation of the cashless policy in Port Harcourt.


According to the 2011 Global FINDEX Survey, roughly one-third of Brazilians and South Africans with debit cards use e-payments, compared to one-tenth of Nigerians: the 2% of Nigerian adults who currently make e-payments represent a small fraction of the 19% who hold 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) show that Nigerians have been slow to accept and adopt electronic payments and services, with 0.7% of banked adults using POS terminals, 0.8% using the internet, and less than 2.5% using for banking transactions.

Many issues have since influenced the policy, including insufficient sensitization campaigns, inadequate protection of the interests of merchants and persons in the informal sector, a lack of Point-of-Sale (POS) terminals, and other technological challenges.

As a result, these obstacles have substantially hampered policy implementation. It is thus believed that the move is overly idealistic in a country like Nigeria, where a major percentage of the population has low functional reading skills and lives in rural regions, forcing people to travel long distances to use these services. As a result, it is necessary to investigate the level of acceptability and adoption of the cashless economic policy in Nigeria.


The study's overarching goal is to establish the level of acceptability and adoption of the CBN's cashless policy in Port Harcourt. The specific goals are as follows.

To assess the level of acceptability and adoption of the Central Bank of Nigeria's cashless policy in Port Harcourt.

To learn about the advantages, benefits, and implications of accepting and implementing the Central Bank of Nigeria's cashless policy in Port Harcourt.

To ascertain the difficulties associated with the use of online and mobile banking services/POS, as well as the drawbacks of the CBN's cashless policy in Port Harcourt.

To identify the elements that can increase the acceptability and adoption of the CBN's cashless policy in Port Harcourt.


What is the level of acceptance and adoption of the Central Bank of Nigeria's cashless policy in Port Harcourt?

What are the advantages, benefits, and implications of embracing and implementing the Central Bank of Nigeria's cashless policy in Port Harcourt?

What are the hurdles to using online and mobile banking services/POS, as well as the drawbacks of the CBN's cashless policy in Port Harcourt?

What variables can increase the acceptability and adoption of the CBN's cashless policy in Port Harcourt?


To guide the investigation, the following hypotheses were developed and evaluated at

Ho: The inhabitants of Port Harcourt have not widely accepted and followed the CBN's cashless policy.

HA: The people of Port Harcourt have largely accepted and embraced the CBN's cashless policy.


This study aims to determine the level of acceptability and adoption of the CBN's cashless policy in Port Harcourt, taking into account the factors and challenges that affect the policy's acceptability and adoption.

As a result, this study will educate the general public on the importance of accepting and adopting the cashless policy, as well as the benefits of the policy. Furthermore, this study will educate financial sector players on how to overcome the difficulties restricting the CBN's cashless policy's acceptance and adoption.

Finally, the findings of this study will add to the body of knowledge on the acceptability and adoption of the CBN's cashless strategy.


This study will cover all Local Government Areas in Port Harcourt in order to determine the level of acceptability and implementation of the CBN's cashless policy.


The limitations encountered throughout this investigation are mostly focused on issues relating to:

Difficulty in obtaining appropriate, adequate, and reliable information from respondents- Respondents prefer to supply information that they believe the researcher would appreciate, which may not be accurate.

Financial constraint- Inadequate funding tends to hamper the researcher's efficiency in locating relevant materials, literature, or information, as well as in the data collection process (questionnaire and interview).

Time constraint- The researcher will conduct this investigation alongside other academic activities. As a result, the amount of time spent on research will be reduced.


Payment- the act or process of paying or being paid to someone or something.

The state of a country or region's economy in terms of the production and consumption of goods and services, as well as the availability of money.

A transaction is a purchase or sale of something.

Cash is money in the form of coins or notes, as opposed to cheques, money orders, or credit.

The Internet is a global computer network that provides a variety of information and communication services. It is made up of interconnected networks that use standardised communication protocols.

Need help with a related project topic or New topic? Send Us Your Topic 


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.