ABSTRACT
The global shift toward digital financial ecosystems has positioned cashless policies as pivotal instruments for economic modernization, particularly in developing economies where informal cash-dominant transaction systems have historically constrained business scalability and financial inclusion. This study investigates the impact of Nigeria’s cashless policy on the operational and financial performance of small-scale industries (SSIs) in Bauchi State. Anchored in the Technology Acceptance Model (TAM), the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2), and Diffusion of Innovation (DOI) theory, the research employs a quantitative descriptive survey design. Data were collected from 370 SSI operators across retail, hospitality, transport, ICT, food services, and manufacturing sectors in Bauchi Metropolis using a structured questionnaire validated through expert review and pilot testing (Cronbach’s alpha = 0.82). Descriptive statistics (frequencies, percentages, means, standard deviations) and inferential analyses (Pearson correlation, chi-square tests, and multiple regression) were computed using SPSS Version 25 at a 5% significance level. The findings reveal a moderate level of awareness and adoption of cashless instruments particularly point-of-sale (POS) terminals and mobile banking among SSI operators. Operationally, cashless tools significantly enhanced transaction speed (mean = 3.22, SD = 1.19), customer growth (mean = 3.18, SD = 1.29), and financial record-keeping (mean = 3.08, SD = 1.25). However, the direct financial impact on revenue growth (mean = 2.94, SD = 1.30) and access to formal credit (mean = 2.91, SD = 1.31) remained below the neutral threshold, indicating that systemic barriers attenuate the translation of operational efficiencies into tangible financial gains. Regression analysis confirmed that mobile wallet adoption (β = 0.342, p < 0.001) and mobile banking (β = 0.287, p < 0.001) were the strongest predictors of overall SSI performance, while virtual card adoption showed weaker but statistically significant effects (β = 0.156, p < 0.05). The study identifies poor network connectivity (mean = 3.40, SD = 1.32), high transaction charges (mean = 3.26, SD = 1.30), insufficient digital literacy training (mean = 3.12, SD = 1.27), and security concerns (mean = 3.08, SD = 1.31) as the most critical barriers to adoption.
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- Peter Ellah (Autor:in), 2026, Impact of Cashless Policy on the Performance of Small-Scale Industries in Bauchi State, München, GRIN Verlag, https://www.grin.com/document/1741621