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Article Title:
The Effect of Cashless Policy, Saving and Bank Credit on Nigerian Deregulated Economy
by Suberu O. J, Afonja J.A, Akande M.O and Olure-Bank Adeyinka.

Abstract:
This study examines the implications of cashless banking, with a view to exposing the possible challenges and prospects it poses to the Nigerian economy whilst employing aggregated approach. Biases the effects of cashless policy, savings and bank credit on economic growth in Nigeria deregulated economy using deposit money banks as a case study. This study is significant to Nigeria, where carrying raw cash is norm, money laundering and illiteracy is on high. It specifically sought to find out how cashless policy can mobilize and increase total domestic saving by increasing bank credit of deposit money banks injected into the Nigerian economy, and their impact on the country?s economic growth as proxies by Gross Domestic Product. Data were collected from secondary sources. The ordinary least square econometric technique was used to analyze the data. The a priori expectation is that bank credit to domestic economy should have a significant positive impact on the growth of GDP. Our findings revealed that the marginal productivity coefficient of bank credit to the domestic economy is positive but insignificant. The implication is that banks credit did not affect the productive sectors sufficiently for the latter to impact significantly on the Nigerian economy. In view of this, the paper recommended that banks should be willing to give both short and long-term loans for productive purposes as there would be more available funds with introduction of cashless policy, as this will eventually lead to economic growth. Also the regulatory body (CBN) should adopt a direct credit control that will be beneficial to the productive sector of the economy.

Keywords: cash less policy, credit, deregulated economy, saving, bank credit

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