ABSTRACT
The study examined the impact of the CBN cashless policy on Business growth. Specifically, the study sought to empirically examine the extent to which the cashless policy necessitated the adoption of alternative payment systems by business as well as the challenges faced by businesses in adopting alternative modes of payment. To guide the study, four research questions were raised and four hypothesis generated.
A survey research design was adopted and the population of the study were drawn from local businesses, shops, and stalls stituated around the Ugbowo Cmpus axis of the University of Benin, Benin city, Edo state. A sample of size of 100 respondents were conveniently selected, after due computation using the Taro Yamene’s sample size determination formular. The study adopted the use of structured Questionnaires, tailored towards the objectives of the research, in obtaining data and responses from the respondents. A hundred copies of questionnaire was distributed to responds via pick and drop method, and all were duly retrieved and used for the analysis. Data obtained from the respondents were analyzed using Descriptive statistics, mean, frequency, and Linear Regression models, Via the Statistical package for Social Sciences (SPSS) version20.
Findings obtained from the study among others indicates that, the cashless policy had negative implications on the performance of businesses in Benin city. Also, the study found that majority of the businesses adopted Point of sales (POS) terminals as the preferred means of payment given the unavailability of cash. It was also observed that businesses are encompassed with varying challenges in adopting alternative modes of payment amongst which high cost set-up /acquisition cost ranked highest.
Based on the findings, the study recommended among other things that government should consider the overall implications of its policies on varying sectors of the economy; and create measures of mitigating the challenges that may be associated with it. It was also recommended that businesses endeavour to keep tabs with events and changes in the environment where they operates, and be ready adapt to changes within the society in other to ensure their growth and survival. It was also recommended that businesses endeavour to keep tabs with events and changes in the environment where they operates, and be ready adapt to changes in order to minimize losses while maximizing its profits.
