An Assessment of the Effects of Cashless Policy on Financial Inclusion in the Selected LGAS of Gombe State

Abdulkadir Ibrahim & Abubakar A. Jamari

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Abstract

This study assessed the effect of the cashless policy on financial inclusion in selected local government Councils of Gombe State. The cashless policy, introduced by the Central Bank of Nigeria, was designed to reduce the overreliance on physical cash transactions, promote electronic payment systems, strengthen monetary control, and improve access to financial services among Nigerians. The policy aimed at encouraging the adoption of digital banking platforms such as Automated Teller Machines (ATMs), Point of Sale (POS) terminals, mobile banking, internet banking, and mobile money services. However, due to inadequate banking infrastructure, mostly occasioned by poor internet connectivity, unstable electricity supply, low literacy levels, and limited awareness of digital financial services, rural communities in Nigeria continue to experience varying levels of financial exclusion. The study adopted a cross-sectional survey research design to interrogate these challenges. Relevant information was obtained from textbooks, journal articles, policy documents, reports from the Central Bank of Nigeria, and publications from international organisations and other related institutions. Findings from the study revealed that the cashless policy contributed positively to financial inclusion by increasing the use of electronic banking services, encouraging account ownership, and promoting the expansion of agency banking and POS operations across rural areas. However, the study revealed that several challenges, such as poor technological infrastructure, network failures, cyber-security concerns, low financial literacy, high cost of transactions, and inadequate access to banking facilities, hindered the effectiveness of the policy in rural areas. Thus, the findings of the study revealed that the success of the cashless policy largely depended on improved infrastructure, effective public awareness, financial education and supportive government policies, targeted at making digital financial services accessible and affordable.

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