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

The lack of digital infrastructure in Nigeria, as well as the projected effect on the production of goods and services, necessitated this investigation. The aim of this research is to determine the impact of digital finance on Nigeria's GDP. The study examines the current effect of digital finance on Nigeria's economic development. The variables used in this analysis were ATM, POS, and NIP, which were extracted from the Central Bank of Nigeria (CBN) website and computed quarterly as exposed influences on the Nigerian economy between 2012 and 2017. The Granger Causality and Philips-Perron unit root tests were used.At the first stage differential, the Philips-Perron unit root test results were stationary. Furthermore, the Granger Causality findings show that the digital finance platforms of ATM, POS, and NIP have no causal meaningful effects on the Nigerian economy's gross domestic product. The study then concluded that ATMs, POS machines, and NIP cards do not constitute a significant digital finance channel strategy to boost the Nigerian economy's gross domestic product, so they work independently.Inadequate digital infrastructure, security concerns, and a lack of focus on R&D were identified as likely issues limiting the growth of the digital finance environment, according to the investigation. The study recommends that the banking sector and network providers expand digital infrastructures and ATM outlets to rural areas, as well as raise public awareness in all related flashpoints with the support of security personnel.

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