Influence of Agent Banking on the Nigerian Economy
Abstract
The study empirically analyzed agent banking and the Nigerian economy. Data for the study were sourced from Central Bank of Nigeria (CBN) Statistical Bulletin for the period of 2009-2019. Descriptive statistics and Ordinary Least Square (OLS) were employed with to test the hypotheses with the use of E-Views 9.0. The variables of Automated Teller Machine (ATM), Web/Internet Banking (WEB), Point-of-Sale (POS) and Mobile Banking (MOB) regressed on Real Gross Domestic Product (RGDP). The result shows that about 90.97% of the model was explained by the explanatory/independent variable The Durbin-Watson statistic shows that there is absent of autocorrelation or serial correlation. Prob.(F-statistic) 0.002746 shows that the variables were statistically significant. The study, concludes that agent banking has a significant influence on the Nigerian economy. Hence, the application of Agent Banking will in no doubt enhance customers’ accessibility and profitability of banks, thereby leading to economic growth of a nation, Nigeria in particular. We therefore submit that the implication is that transitioning from our traditional banking system to an agent banking system will necessitate some change as well as a significant amount of effort and sensitization, especially among low-income customers who are currently deeply rooted in the use of cash and see it as a convenient and easy way of receiving and making payments at any time.
