IMPACT OF CASHLESS POLICY ON PAYMENT SYSTEM IN NIGERIA:
A SURVEY OF LAGOS STATE PUBLIC SECTOR
The Nigerian economy is heavily cash-oriented, which is development that negates the global trend and the country’s ambition to drive the development of her payment system. This trend awakens the quest to modernize the country’s payment systems, resulting in the introduction of the cashless policy. Thus, this study provides on empirical investigation of the impact of cashless policy on payment system in the Nigerian public sector. Primary data was generated from 393 questionnaire administered to civil servants and contractors Lagos State. Reliability test was conducted using Cronbach Alpha statistics which gave a overall coefficient of 73.5% Multiple Regression analysis was used to test the organizational efficiency cashless policy and One Sample t-test techniques to examine the challenges of cashless policy implementation in the Nigerian public sector. The results shows a significant positive relationship between cashless payments in the public sector and an improvement in the operation of their financial transactions, but a negative significant relationship between cashless policy and corruption practices in the public sector. The study also identifies weak online service facilitate insufficient infrastructure, internet related crime and cyber fraud to greatest challenges and impediments to the effective implementation cashless policy in Nigeria. Based on these findings, the study among others recommends that government should institute regulatory framework and policies that will deepen the payment system in to public sector to reduce corrupt practices, and implementation of a based information security system to guide against the incidence internet related crime.
