Assessment of the Cashless Policy and Transaction Volume Growth in Commercial Banks in Cross River State

The Central Bank of Nigeria's cashless policy, introduced in phases from 2012, has aimed to reduce the dominance of cash in Nigerian economic transactions and modernise the payments system. This study assesses the impact of the cashless policy on transaction volume growth in commercial banks in Cross River State, South South Nigeria. A longitudinal research design was adopted using secondary data from the Central Bank of Nigeria payment systems reports and financial records of seven commercial banks with branches in Calabar, Ikom, and Ogoja Local Government Areas for the period 2012 to 2022. Transaction volume was measured by the number and value of electronic fund transfers, point-of-sale transactions, and automated teller machine transactions. Descriptive statistics and trend analysis were used for data presentation, while paired sample t-tests were employed to compare pre- and post-cashless policy transaction volumes. Results showed significant growth in electronic fund transfer volumes post-policy implementation (mean transaction value increase: 318%, t = 7.42, p < 0.01). Point-of-sale transaction volumes grew by 542% between 2015 and 2022. However, automated teller machine withdrawals, indicating continued cash preference, also grew by 204%, suggesting partial policy success. The study concludes that the cashless policy has substantially increased electronic transaction volumes in Cross River State but has not eliminated cash preference, particularly in rural areas. Recommendations include infrastructure investment in electronic payment terminals in rural communities. Keywords: cashless policy, transaction volume, commercial banks, Cross River State, electronic payments