The Nigerian Digital Finance Environment and Its Economic Growth: Pain or Gain

The shortage of digital infrastructures across Nigeria and the expected impact on the output of goods and services demanded this study. This study aims to identify the effect of digital finance on Nigerian gross domestic product. The study measures the prevailing impact of digital finance on economic growth in Nigeria. The variables employed in this study were ATM, POS and NIP extracted from the Central Bank of Nigeria (CBN) website between 2012 and 2017 and computed quarterly as exposed influences on the gross domestic product in the Nigerian economy. The Philips-Perron unit root and Granger Causality tests were applied. The results of the Philips-Perron unit root test were stationary at their first level difference. Furthermore, the results of the Granger Causality indicate no causal significant impact of digital finance channels of ATM, POS and NIP on the gross domestic product in the Nigerian economy. The study then concluded that ATM, POS and NIP did not constitute the significant digital finance channels policy to promote the gross domestic product in the Nigerian economy, hence they operate independently. The investigation spotted inadequate provision of digital infrastructure, security challenges and poor attention to Research and Development as likely issues affecting the growth of the digital finance environment. The study recommends that the banking sector and the network providers should spread the digital infrastructures and ATM outlets even in the rural areas and further create public awareness with the help of security personnel in all relevant flashpoints.