The Evolution of Cashless Economy in Nigeria: Policies, Impacts, and Future Directions

Kenyangi Ochen F.

School of Law Kampala International University, Uganda

ABSTRACT

Nigeria’s cashless economy has evolved through progressive policies, regulatory reforms, and technological advancements. The cashless policy introduced in 2012 aimed to reduce cash dependency and encourage digital transactions. The eNaira in 2021 facilitated this transition, providing a secure digital currency platform. Post-demonetization, SMEs embraced digital payment solutions, leveraging mobile banking apps, QR code payments, and e-commerce integrations. However, rural SMEs faced challenges due to infrastructure limitations and digital literacy gaps. Regulatory frameworks focused on enhancing payment system efficiency, consumer protection, and cybersecurity. Technological advancements in payment gateways, mobile money systems, and cybersecurity played a crucial role in driving adoption. Economic impacts on SMEs highlighted efficiency gains, market expansion, and job creation. Social and cultural factors influenced adoption rates. Nigeria’s cashless economy prospects depend on expanding digital infrastructure, promoting consumer education, and enhancing regulatory frameworks. This article explores the Evolution of Cashless Economy in Nigeria: Policies, Impacts, and Future Directions. The review concludes that Nigeria stands at a pivotal juncture in its pursuit of a cashless economy, with the potential to unlock economic opportunities and improve financial inclusion through strategic investments and policy innovations. Addressing remaining challenges will be essential to sustain momentum towards a robust and inclusive cashless future.

Keywords: Evolution, Cashless Economy, Nigeria, Cybersecurity, Impacts, Smartphones.

CITE AS: Kenyangi Ochen F. (2024). The Evolution of Cashless Economy in Nigeria: Policies, Impacts, and Future Directions RESEARCH INVENTION JOURNAL OF LAW, COMMUNICATION AND LANGUAGES 3(3):97-102.