+234 813 0686 500
+234 809 3423 853
info@grossarchive.com

IMPACT OF ELECTRONIC PAYMENT SYSTEM ON THE ECONOMY DEVELOPMENT OF NIGERIA

  • Type:Project
  • Chapters:5
  • Pages:65
  • Format:Microsoft Word
(Economics Project Topics & Materials)

IMPACT OF ELECTRONIC PAYMENT SYSTEM ON THE ECONOMY DEVELOPMENT OF NIGERIA

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

            An information system (IS) can be viewed essentially as a social system with some technological elements (Land, 1994; Soriyan, et al. 2001). This indicates a shift from an initial techno-centric focus to a more integrated technology, management, organization and social focus (Elliot and Avison, 2005). It also emphasizes the application of technologies and the interactions between people and organizations and the technology. These interactions, the processes or order needed and the governance structure based on defined regulatory framework for the interactions, may be significant in the application of technologies and economic activities (North, 1991). This study views these interactions, governance structure and regulatory framework as institutional arrangements (North, 1991), and examines their contributions or limitations in the development of Electronic Payments System (EPS).

            Nigeria payment system has been predominantly cash-based for both positive and negative reasons: positive because of its instant convertibility to other forms of value without intermediation of any financial institution and negative because of its anonymity and un-traceability in unethical transactions. Electronic payment was introduced because government was inundated with allegations of corruption in the Federal Civil Service. The Federal Government through its treasury circular reference No TRY/A8 & B8/2008 of 22nd October, 2008 directed that payments from all funds from it be made electronically as from 1st January, 2009. The policy has been condemned by all and sundry for lack of planning, inefficiencies and delay in the payment for goods and services, hence this article extends and contributes to the body of knowledge to assess the implementation and constraints of the system with a view to proffering solutions to them.

            An Electronic Payment System (EPS) is a form of inter-organizational information system (IOS) for monetary exchange, linking many organizations and individual users. This may require complex interactions between the stakeholders, the technology and the environment. The unique characteristics of EPS/IOS also differentiate it from traditional internal based information systems; it is more complex and multifaceted technologically, organizationally and, relationally (Sprague and McNurlin, 1993; Boonstra and de Vries, 2005; Kumar and Crook, 1999), highlighting the importance of collaboration and the need to bring all the facets together. Therefore, this study examines the impact of electronic payment on the economy development of Nigeria.

1.2      STATEMENT OF THE PROBLEM

            Information System development has been described as problematic and constrained with diverse challenges in developing countries such as Nigeria which has peculiar socioeconomic environments (Heeks, 2002; Avgerou, 2008; Mursu et al., 2000). EPS development in particular is faced with challenges ranging from lack of adequate legal backing, governance issues, credibility of the human element and lack of skilled resources, integrity of data transmitted, lack of infrastructures, interconnectivity and interoperability (Ovia, 2005), attributable to the country’s technological infrastructure and institutional capacity. Many years of development aid have failed to bring the desired results of developments in most developing countries, partly due to the focus on macro approaches and policies which do not emphasize the local institutional context faced by economic agents in those developing countries. This makes getting the right institutional context a major issue for developing countries (Sautet, 2005) particularly for the development of information systems such as EPS which is embedded and much influenced by the institutional context.

            The introduction of e-payment in Nigeria was done initially to eliminate the unacceptable delay in the payment of government contractors by minimizing interaction between contractors and government officials who have role to play in the payment system but was later extended to cover all payments from any government fund effective 1st January, 2009. Concerns have been raised on the payment system implementation and concerns. Therefore, this study identifies the constraints in the payment system and proffer solutions to same.

1.3      OBJECTIVES OF THE STUDY

            The main objective of this study is to examine the impact of electronic payment system on the economy development of Nigeria. The specific objectives include the following:

1.        To assess the effectiveness of the implementation of e-payment     system in Nigeria

2.        To identify the constraints in the implementation of the system

3.        To proffer solutions to the identified constraints in the           implementation of the system.

1.4      RESEARCH QUESTIONS

The following research questions were stated to guide this study:

1.        How effective is the implementation of e-payment system in            Nigeria?

2.        What are the constraints bedeviling the implementation of the       system in Nigeria?

3.        What are the possible solutions to the identified constraint in          the implementation of the system?

1.5      RESEARCH HYPOTHESES

            The following research hypotheses were formulated to guide this study:

Hypothesis 1

H0:      The implementation of electronic payment system does not             effectively enhance economic development of Nigeria.

H1:      The implementation of electronic payment system effectively         enhances economic development of Nigeria.

Hypothesis 2

H0:      There are no constraints bedeviling the implementation of the        system in Nigeria.

H1:      There are constraints bedeviling the implementation of the system in Nigeria.

1.6      SIGNIFICANCE OF THE STUDY

In this study, the researchers have set out to examine the impact of electronic payment system on the economy development of Nigeria using Eco Bank Plc. Therefore, this study is expected that it will be of immense interest to the government and Eco Bank Plc, students and the general public.

To shareholders and interested persons, this study is expected to enkindle their interest the more and they will take note of various recommendations mentioned here and help steer the banking industry towards introducing and improving the use of electronic payment system in Nigeria.

            This study will also help to serve as literature (reference source) to students, individuals or corporate bodies into what to carry out on further research on the impact of electronic payment system on the economy development of Nigeria.

1.7      SCOPE OF THE STUDY

            The study is concerns about the impact of electronic payment system on the economy development of Nigeria with specific reference to Eco Bank Plc.

1.8      LIMITATION OF THE STUDY

The limitation to the study was inability of management to divulge certain information which they consider sensitive and fear of publication which might be detrimental to their operation.

Distance and its attendance cost of travel in order to obtain information which to write this study was also a major limitation. Another limitation to the study is short time factor which did not give time for thorough research work, hence gathering adequate information becomes very difficult.

Finally, lack of materials on the topic; this is new in the area of the impact of electronic payment system on the economy development of Nigeria. Therefore, the researcher resolved to seek friendly approach in order to obtain the needed materials or information from the organization under study through the administration of questionnaire.

1.9      DEFINITION OF TERMS

Access Products: Products that allow consumers to access traditional payment instrument electronically, generally from remote locations.

Chip Card: Also known as an integrated circuit (IC) Card. A card containing one or more computers chips or integrated circuits for identification, data storage or special purpose processing used to validate personal identification numbers, authorize purchases, verify account balances and store personal records.

Electronic Data Interchange (EDI): The transfer of information between organizations in machine readable form.

Electronic Money: Monetary value measured in currency units stored in electronic form on an electronic device in the consumer’s possession. This electronic value can be purchased and held on the device until reduced through purchase or transfer.

Electronic Recruitment: This is  an  online recruitment services to  all  kinds and categories of clients such as (Army, navy, police and the Paramilitary) through customizable  web  portals  and  the  use  of  scratch  cards/PINs  for  a  Prospective applicants simply buy the scratch cards, visit portal and fill relevant information. Information collected about applicants could then be analyzed appropriately using ‘what if’ capabilities and filtered according to several criteria to be set by client. Short listed applicants could then be contacted automatically via email or SMS or both.

Internet Banking: This is a product that enables the Bank leverage on the Internet Banking System Module in-built on the new Banking Application (BANKS) implemented by the Bank to serve the Internet Banking needs of the Bank’s customers.

Mobile Banking: This is a product that offers Customers of a Bank to access services as you go. Customer can make their transactions anywhere such as account balance, transaction enquiries, stop checks, and other customer’s service instructions, Balance Inquiry, Account Verification, Bill Payment, Electronic fund transfer, Account Balances, updates and history, Customer service via mobile, Transfer between accounts etc.

Payment System: A financial system that establishes that means for transferring money between suppliers and of fund, usually by exchanging debits or Credits between financial institutions.

Point Of Sale (POS) Machine: A Point-of-Sale machine is the payment device that allows credit/debit cardholders make payments at sales/purchase outlets. It allowed customers to perform the following services Retail Payments, Cashless Payments, Cash Back Balance Inquiry, Airtime Vending, Loyalty Redemption, Printing mini statement etc.

Smart Card: A Card with a computer chip embedded, on which financial health, educational, and security information can be stored and processed.

IMPACT OF ELECTRONIC PAYMENT SYSTEM ON THE ECONOMY DEVELOPMENT OF NIGERIA
Share This

Details

Type Project
Department Economics
Project ID ECO0423
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 65 Pages
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Economics
    Project ID ECO0423
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 65 Pages
    Format Microsoft Word

    Related Works

        ABSTRACT The use of electronic payment systems provide a lot of benefits to its users but despite these, the Nigeria economy is still regarded as cash-based where majority of its people prefer to carryout daily transactions with cash. The research was... Continue Reading
    ABSTRACT The study examined the impact of electronic payment system on customer satisfaction in Nigeria. Particularly, the study investigated the extent to which electronic payment systems such as internet banking, mobile banking, ATM and POS system influence customer satisfaction in Nigeria using a case study of students of Redeemers University.... Continue Reading
    The effect of electronic payment system on customer satisfaction in Nigeria banking system. (Banking and Finance) CHAPTER ONE INTRODUCTION 1.1.  Background of the Study Today’s business environment is extremely dynamic in nature. It has experienced rapid changes as a result of technological improvements, increased awareness and demands for... Continue Reading
    Appraisal of the effect of electronic payment system on customer satisfaction in Nigeria banking system. A study of Access bank Plc, Calabar  CHAPTER ONE INTRODUCTION 1.1.  Descriptive Background of the Study Today’s business environment is extremely dynamic in nature. It has experienced rapid changes as a result of technological improvements,... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1.   Background of the Study Today’s business environment is extremely dynamic in nature. It has experienced rapid changes as a result of technological improvements, increased awareness and demands for banks services. The Banking industry of the 21st century operates in a complex and competitive environment... Continue Reading
    ABSTRACT The study investigates the Federal Government of Nigeria electronic payment system implementation and the constraints confronting it with a view to providing solutions to the constraints so identified. The study is motivated by the apparent low level of... Continue Reading
    ABSTRACT This study reviewed the concept of electronic banking (e¬-banking), examined its prospects for Nigerian banks and discussed associated risks. The study also went further to state the guidelines for e-banking as provided by the Central Bank of... Continue Reading
    CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY In any nation, there arem basically four objectives or goal of micro- economics policies. i. High level of employment ii. A reasonable stable price iii. Rapid economic growth and maintenance of equilibrium in the... Continue Reading
    ABSTRACT Electronic banking has become an important practice among commercial banks in Nigeria. The introduction of this electronic banking helps improve banking efficiency in rendering services to customer, it was in line with this that the study aim at examine the impact of electronic banking in... Continue Reading
    TH E IMPACT OF ELECTRONIC BANKING IN NIGERIA BANKING SYSTEM (CRIT I CA L APPRAISAL OF UNITY BANK PLC) CHAPTE R ONE  INTRODUCTION 1.1 .   Background of the Study The new millennium brought with it new possibilities in terms of information access and availability simultaneously, introducing new challenges in protecting sensitive information from... Continue Reading