Perception Of Central Bank Of Nigeria Cash-Less Policy By Bank Customers

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM


Abstract


This study was carried out on the perception of central bank of Nigeria cash-less policy by bank customers using bank users in Enugu State as a case study. To carry out the study, 3 research objectives were posed. The study adopted a descriptive survey design. The study was carried out in Enugu State metropolis. The population of the study comprised of bank users in Enugu metropolis. The population size of the study was 112 participants. The instrument for data collection in this study was structured questionnaire. Data collected were analyzed using frequency Table and the hypothesis were tested using Chi-square statistical tool. The major findings of the daily amount of cash for withdrawal or deposits for individual and corporate bodies approved by CBN are significantly inadequate for their daily problem solving. The study also revealed that the customers’ perceptions about the major challenges to cashless policy in Nigeria include; inadequacies of physical infrastructure, poor security, epileptic power supply, lack of constant accessibility of e-payment materials, and inadequate knowledge of e-payment. Based on the findings; the research recommends that tools facilitating this policy should be readily available to everyone be it in the rural and nonrural environment. Also, in a bid to make these tools more secure, improved security systems should be installed in the various platforms and facilities involved in e-banking.


Table of Content


Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE 

Chapter One


Introduction

1.1 Background of the Study

The trend of electronic payment began in United States of America many years ago, followed by other developed Countries like United Kingdom, France, Sweden, and Canada among others. It has become necessary to lots of African Countries including Nigeria to join this system of electronic payments while dealing with less of cash.

Cash (money) is anything generally accepted as a means of payment for goods and services. In the past various things have been used as money for the settlement of debt which includes – gold, cowry, shells, coins, pepper money and lately electronic payment cards. Within the 20th century cash was the dominant means of payment but was replaced by electronic payment including ATMs, POS, internet and mobile phones etc in emerging and developed countries like USA, UK, Canada, Sweden etc. While in Nigeria Central Bank of Nigeria introduced it as cashless banking policy in April, 2011 flagged off in Lagos – the pilot centre six months later. It is pertinent to know that the Bankers Committee of Nigeria, Commissioned a study to identify cost drivers to proffer a sustainable solution. Amongst the result of the study are – high cash intensity in the economy and its impact on high cost structure in the financial value chain. It was observed that the total cash management costs in 2012 was projected to exceed N192 billion excluding cost of production, distribution, processing and destruction by Central Bank of Nigeria. It showed that 10% of customers carry out cash transaction above N150, 000 daily in banks, meaning that 95% mass public is subsidizing the cash transaction cost on that 10% of bank customers. This brought about the policy – cash-based which stipulates a cash service charge on daily cash withdrawal or deposit that exceeds N500,000 for individual and N3,000,000 for corporate bodies. This aims at reducing cash circulation in the economy but not eliminating amount of physical cash circulation in the economy. It will also reduce the high cost of cash to the financial system. (Umeano, 2012)

The relevance of customers in the cash and banking transaction of any Nation cannot be overemphasized. They are the cornerstones, the linchpin of the banking and financial system of a country. The economy of all market – oriented nations depends on the efficient operation of complex and delicately balanced system of money and credit. Customers are indispensible element of this system. Customers provide the bulk of the money supply as well as the primary means of facilitating the flow of credit. “Consequently it is submitted that the economic well being of any nation is a function of advancement and development of its banking industry with customer as the “king”.

The cash-less policy introduced by Central Bank of Nigeria in 2011, have attracted comments, criticism and commendations from several quarters. To some people, it appears there is no advantage of electronic payment system (cash-less system) over cash dominated system economy. The issue at hand is the method and time frame adopted to influence Nigeria to embrace electronic payment referred to as cash-less policy by Central Bank of Nigeria. Another major problem CBN and other bankers have to contend with is the issue of armed rubbery, lack of understanding of cash policy amongst banked and unbanked, infrastructure lag, distrust in banking system etc on the part of banks. While on the part of customers, the fear of technology based on literacy level for the use of Electronic payment product, fear of exorbitant bank charges on Electronic payment product, security on ATM fraud level and level of awareness to the general public especially none wage earners and people in rural areas who have no access to banking and even the Electronic payment (e-payment). Above all is the availability and accessibility of e-payment enablers summarized as – Infrastructure, Payment Terminal Service providers (PTSP), Point-of-Sale (POS) terminals, Automated Teller Machine (ATM) Bank coordinators, Fraud management, Customer protection and dispute resolution to mention but a few.

All these factors have combined to create challenging and precarious cash-less policy for the customers. Consequence of this new cash-less policy has been rapidly increasing especially with ATM card issued since inception. The pace at which Nigerians embrace e-payment system rests on the successful implementation of the cash-less policy – which does not rest squally on the Central Bank of Nigeria (CBN) and Deposit Money Banks (DMBs) alone, but with other social institutions and forces e.g. Media, Traditional rulers, Churches etc to create awareness. To position this cash-less policy to effectively withstand its challenges and avert failure, the regulators have found a way around it to make headway. Optimists of the new system have waved off what appeared to be the major impediments in terms of infrastructure, and there is slow but steady adoption of the system by Nigerians.


1.2 Statement of the Problem

Globally, many developed and developing countries have embarked on e-payment and they were not free from challenges emanating from it. Cashless economy is a situation where there is little or very low use of cash in a given society, thus every other purchase and transaction will be made by electronic channels such as electronic fund transfer, direct debit, mobile payments, ATMs, Internet Banking, POS etc. Generally, cash is required to support business and in fact in every financial transaction, but the importance of e-payment (cash-less) system cannot be overemphasized. It is an essential element which enhances confidence, reduces robberies and cash related crimes as well as reducing high cost of cash handling and processing. However, the facilities to support these advantages were problems envisaged with regard to security, constant provision of power for the e-payment usage, constant accessibility of e-payment materials etc.


1.3 Objectives of the Study

The broad objective of this research work is to examine the perception of the CNB cashless policy by commercial banks’ customers in Enugu metropolis.

The specific objectives of the study are as follows:

  1. To identify the bank customers’ perception about the adequacy of the daily amount of withdrawable cash approved by CBN.
  2. To find out customers’ perception about the major challenges of the cashless policy in Nigeria.
  3. To find out the extent of customers’ knowledge about CBN e-payment plans.

1.4 Research Questions

The following formulated research questions prompted the researcher to write this project.

  1. What is the bank customers’ perception about adequacy of the daily amount of cash withdrawable approved by CBN?
  2. What are the customers’ perceptions about the major challenges to cashless policy in Nigeria?
  3. What is the extent of customers’ knowledge of CBN e- payment plans?

1.5 Research Hypotheses

The following formulated research questions prompted the researcher to write this project.
iv. What is the bank customers’ perception about the adequacy of the daily amount of cash withdrawable approved by CBN?
v. What are the customers’ perceptions about the major challenges to cashless policy in Nigeria?
vi. What is the extent of customers’ knowledge of CBN e- payment plans?
1.5 RESEARCH HYPOTHESES
For the purposes of this study, the following hypotheses are formulated:

  1. Ho1: The daily amount of cash for withdrawal or deposits for individual and corporate bodies approved by CBN are significantly inadequate for their daily problem solving.
  2. Ho2: There are no challenges facing cashless policy implementation in Nigeria.
  3. Ho3: The customers’ knowledge about CBN e-payment plans were very low.

1.6 Significance of the Study

The researcher is optimistic that at the end of this research, the findings of the perception by customers, if accepted would be offered for the benefits of all those (participating management) involved in the cash-less policy implementation in Nigeria.

Furthermore, the research will intimate customers, general public and Banking industry in Nigeria the challenges and achievements of the electronic payments. Also, the study will be of tremendous benefit to the policy makers, board and administrators, managements and staff of the financial market, security bodies in handling this issue to prevent corruptions, mismanagement and failure of this system of payment.

The researcher also hoped to provide information for those who would want to conduct a similar study. The information provided would be of a great value to them. It would also serve as a point of reference for further research.


1.7 Scope of the Study

The study is basically on customers’ perception of Central Bank of Nigeria cash-less policy the study will further identify the bank customers’ perception about the adequacy of the daily amount of withdrawable cash approved by CBN, find out customers’ perception about the major challenges of the cashless policy in Nigeria, and find out the extent of customers’ knowledge about CBN e-payment plans. The respondents for this study will be obtained from bank users in Enugu State.


1.8 Limitations of the Study

The researcher encountered the following limitations;

1. Financial constraints

The researcher being self sponsored is faced with problem of paying school fees, paying for every necessary thing required by the school, transportation to school and to CBN for data collection and other logistics.

2. Time constraints

Apart from being a student attending lectures, I am also working to sponsor myself and carry out this research.

3. Bureaucracy constraints

some restrictions on getting certain classified information because of their professional secrecy was encountered.

4. Respondents’ constraints

The respondents’ attitudes towards the questionnaire was another constraint. Despite its clarity some respondents were skeptical about the purpose of the questionnaires. This affected the number of questionnaires completed and returned. However, any further investigation or research may have less of these factors to enhance improvement.


1.9 Definition of Terms

Payment

The action or process of paying someone or something or of being paid

Economy

The state of a country or region in terms of the production and consumption of goods and services and the supply of money.

Transactions

An instance of buying or selling something.

Cash

Money in coins or notes, as distinct from cheques, money orders, or credit.

Internet

A global computer network providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols.


1.10 Organisations of the Study

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms.

The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, empirical review, and chapter summary. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, abnd selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration.

The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.


Chapter Five


Summary, Conclusion and Recommendation

5.1 Summary

In this study, our focus was on the perception of central bank of Nigeria cash-less policy by bank customers using bank users in Enugu State as a case study. The study is was specifically carried out to identify the bank customers’ perception about the adequacy of the daily amount of withdrawable cash approved by CBN, find out customers’ perception about the major challenges of the cashless policy in Nigeria, and find out the extent of customers’ knowledge about CBN e-payment plans.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 100 responses were validated from the enrolled participants where all respondent were bank users in Enugu State.


5.2 Conclusion

Based on the findings of this study, the researcher concluded that;

  1. The daily amount of cash for withdrawal or deposits for individual and corporate bodies approved by CBN are significantly inadequate for their daily problem solving.
  2. The customers’ perceptions about the major challenges to cashless policy in Nigeria include; inadequacies of physical infrastructure, poor security, epileptic power supply, lack of constant accessibility of e-payment materials, and inadequate knowledge of e-payment.
  3. The extent of customers’ knowledge of CBN e- payment plans low.

5.3 Recommendation

With respect to the findings and the aim of this study, the researchers therefore recommend that;

  1. Tools facilitating this policy should be readily available to everyone be it in the rural and nonrural environment. Also, in a bid to make these tools more secure, improved security systems should be installed in the various platforms and facilities involved in e-banking
  2. There should be adequate infrastructural facilities, electricity and network; sensitization of the public and intensification of computer education, adequacy of ATM and POS machines and reduction in banking charges.
  3. Governments at every level should collaborate in providing essential social and physical infrastructures that drive the cashless policy.
  4. Creating an awareness program for both literates and non-literates is a major way to encourage the use of the system, educational seminars for late adopter of the cashless policies should be considered and this should be done at reduced prices or no price to aid participation.

Perception Of Central Bank Of Nigeria Cash-Less Policy By Bank Customers


Project Material Download

3,000 Naira


The complete material will be sent to you in just 2 steps.

Quick & Simple…


Step One Purchase

Make payment of ₦3,000: through USSD Transfer, Bank Mobile App, ATM Transfer, or POS Transfer to:

Access Bank PlcAccount No.: 0811003731
Name: Samphina Academy
Account Type: Current

Or Click Here to pay with Debit Card

FOR CLIENTS OUTSIDE NIGERIA:
Click Here to pay with Debit Card ($15)
GHANA – Make Payment of 60 GHS to MTN MoMo, 0553978005, Douglas Osabutey 

  PAY WITH CRYPTOCURRENCY


Step Two Purchase

Send the following details through Text Message or WhatsApp Messenger | +234-8143831497

  • Payment Details 
  • Email Address 
  • Perception Of Central Bank Of Nigeria Cash-Less Policy By Bank Customers

The complete material will be sent to your email address after receiving your payment information | T & C Apply


  Contact Our Help Desk


You may also like:

⚠️ Need a different topic? Perform a quick search



Get A Complete Business Plan For Any Business In Nigeria

Business Plan for Businesses in Nigeria

  Business Plans in Nigeria


Disclaimer


This research material “Perception Of Central Bank Of Nigeria Cash-Less Policy By Bank Customers” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as samphina.com.ng will not be liable for any who copied the material.

The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”.

samphina.com.ng is only providing this material “Perception Of Central Bank Of Nigeria Cash-Less Policy By Bank Customers” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.