INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION

DIGITAL BANKING AND FINANCIAL DEEPENING IN NIGERIA

Chukwunyeaka Linus Okafor (Ph.D),, Christian Mmaduabuchi Odumeh, Chidozirim Stephen Anukam (Ph.D), Wisdom Ezemndi Nwaguru (Ph.D)

September 24, 2026

Citation

INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION , Vol. 3 (3) (2026) , pp. 13-28

Details

ISSN: 3027-0378
Published: September 24, 2026
Status: Published

Abstract

This study examined the effect of digital banking on financial deepening in Nigeria for the period 2009-2024. Digital banking was considered from the prism of POS banking, ATM banking, mobile and internet banking; while broad money supply (M3) to GDP ratio was adopted as a measure of financial deepening. Data from Central Bank of Nigeria (CBN) statistical bulletin were utilized for the study. These data were subjected to descriptive analysis, ADF unit root test, granger causality test and ECM estimation. Results demonstrated that the most popular digital banking channel is internet banking, followed by mobile banking, POS banking and ATM banking. Also, causality runs from POS banking, ATM banking and mobile banking to M3-GDP ratio respectively. Only POS banking was statistically significant while POS and internet banking have positive effects on M3-GDP ratio. The study submitted that digital banking has mixed, causal, and insignificant effects on financial deepening in Nigeria. This led to the suggestions that there is need for more POS terminals in the hinter lands as this will go a long way in enhancing POS operations; more ATM machines should be mounted in the rural areas and bank customers should be allowed to make use of these machines at all times; there is also the need for improved power supply to aid digital banking; and telecommunication network providers on their part should brace up by improving in their services to Nigerians.

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