Abstract
This study investigates factors influencing electronic money usage in Nigeria, aiming to identify
determinants of its adoption. Using time series data from the Central Bank of Nigeria (CBN)
statistical bulletin (2012–2021), electronic money transaction values were set as the dependent
variable, while financial sector development, banking sector development, financial access,
financial literacy, and perceived risk served as independent variables. Multiple regression
analysis with econometrics software was employed for data analysis, utilizing R², Durbin-Watson
statistics, T-statistics, F-statistics, and ? coefficients to measure the effect of independent variables
on the dependent variable. The findings reveal that 48% of the variation in electronic money usage
is attributable to the chosen independent variables, while 52% is due to factors outside the model.
Specifically, financial literacy, banking sector development, and financial access positively impact
electronic money usage, whereas financial sector development negatively impacts it. Perceived
risk also showed a positive effect. Consequently, the study concludes that financial sector
development negatively and significantly relates to electronic money usage, while banking sector
development, financial literacy, financial access, and perceived risk are positively and
significantly related to electronic money usage. Based on these findings, the study recommends
that commercial banks and electronic money providers prioritize system updates to enhance user
accessibility, emphasizing ease of use for all users. These measures could improve electronic
money adoption and increase user confidence across Nigeria.
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