Abstract

The Central Bank of Nigeria (CBN) Cashless Policy, positively impacts the profitability of Deposit Money Banks (DMB). Its role for banks (DMB) Profitability cannot be overemphasized. Therefore, this study investigates the relationship between Cashless Policy and Deposit Money Banks profitability in Nigeria. It is aimed at providing solution to the failure of poor adoption of cashless policies in Nigeria. Four research questions and four hypotheses guided this study. The method of data collection was questionnaire in a fixed response type with a Likert Type Response Format. The bench mark was 2.5. Mean and Frequency counts were used in analyzing data. A major finding of this work reveals that there is a strong agreement among respondents that efficient cashless policy increases Deposit Money Bank profitability. This has a mean score of 3.5 which is quite high as compared to 2.5 bench mark. It shows a high positive relationship between the two variables. Other findings of this research work shows that Cashless Policy have no impact on Deposit Money Banks profitability. Hence, urgent measures need to be in place. It was also discovered that inefficient cashless policy reduces banks profitability in Nigeria. Further findings reveals that inadequate digital infrastructure like poor network and power, High electronic transaction fees, risky cybercrime, and low digital literacy are some of the constraint factors that are responsible for the failure or poor adoption of cashless policies in Nigeria. Among the policy recommendations of this are that Government should make adequate digital infrastructures like network and power available for Cashless Policy to survive in Nigeria. They should endeavor to curb through its agencies, rising cybercrime in Nigeria, so that efficient Cashless Policy will prevail and DMB profitability assured.