UZAH, Cheta Kingsley
Department of Banking and Finance
Faculty of Management Sciences
uzahckingsley@yahoo.com
ODOZI, Victoria Chinwe
Department of Office and Information Management
Faculty of Management Sciences
Rivers State University
ABSTRACT
This study examined the effect of electronic money on the effectiveness of monetary policy in Nigeria.
The study adopted a descriptive research design. Time series data were collected from Central banks of
Nigeria statistical bulletin. Monetary policy effectiveness was modeled as a function of electronic fund
transfer, automated teller machine, mobile payment and point of sale. Ordinary least squares method was
adopted as data analysis technique. The study found that electronic money has positive and statistically
significant effect on effectiveness of monetary policy in Nigeria; and that 71.2% of total variation in
effectiveness of monetary policy in Nigeria were explained by electronic money. The study concludes
that electronic money has positive and significant effect on effectiveness of monetary policy in Nigeria;
and recommends that policy makers and the central bank should encourage the adoption and frequent use
of e-money, if they intend to witness monetary policy effectiveness
Keywords: Automated teller machine, electronic fund transfer, electronic money, monetary policy