CASHLESS POLICY ADOPTION AND SMALL AND MEDIUM ENTERPRISES (SMEs) PERFORMANCE IN BICHI, KANO STATE

Opadere Surajudeen Adeniyi; Evamade Iyamu; Yusuf Abdulhakeem

doi:10.70882/fjbm.2026.v4i2.141

Authors

Opadere Surajudeen Adeniyi
Opaderesura348@gmail.com

University of Benin
Evamade Iyamu
University of Benin
Yusuf Abdulhakeem
Federal University Dutsin-Ma

Keywords:

Cashless policy, SME performance, Mobile banking, Agent banking, Point of Sale (POS)

Abstract

This study examined the influence of cashless policy adoption on the performance of small and medium enterprises (SMEs) in Bichi, Kano State, Nigeria. A cross-sectional survey design was employed, with data collected from 236 registered SMEs selected through multistage sampling. Data was analyzed using SmartPLS 4.0 to assess the effects of agent banking usage, mobile banking adoption, and point of sale (POS) transactions on SME performance. The findings revealed that all three cashless channels had significant positive effects on SME performance, with mobile banking adoption exerting the strongest influence, followed by agent banking usage and POS transactions. The results support the Technology Acceptance Model (TAM) and Institutional Theory, demonstrating that perceived usefulness, ease of use, and supportive institutional structures enhance digital payment adoption and business performance. The study contributes to theory by extending these frameworks in a semi urban Nigerian context and offers practical and policy insights for promoting cashless transactions among SMEs. It recommends expanding digital payment infrastructure, strengthening financial literacy programmes, and encouraging SMEs to adopt secure mobile banking, agent banking, and POS payment systems to improve business performance

Dimensions

REFERENCES

Abiola, K., & Jibrin, S. (2023). Expanding financial inclusion through agent banking in rural Nigeria. Journal of Banking and Finance Technology, 17(2), 88–105.

Abubakar, M., & Saleh, L. (2023). Mobile banking adoption in sub-Saharan Africa: Drivers and outcomes. African Journal of Economics and Finance, 22(3), 254–272.

Adebayo, T., & Oladipo, F. (2024). Digital transformation through cashless policy adoption: Implications for SMEs. International Journal of Finance and Banking, 19(2), 112–130.

Adeoti, A., & Okoye, P. (2025). SMEs performance in dynamic economies: The role of innovation and marketing. Journal of Small Business Studies, 38(1), 45–67.

Ahmad, F., et al. (2022). Behavioral intention and usage of mobile banking: Effects on SME business transactions. Journal of Financial Services, 11(4), 345–360.

Agwu, M. E., & Ezeanic, A. C. (2024). Effect of cashless policy on the performance of small and medium-scale enterprises in Nigeria. International Journal of Economics, Finance and Management, 9(2), 92–112.

Ali-Momoh, B. O. (2023). Cashless policy and performance of small and medium enterprises in Ekiti State, Nigeria. Federal University Oye-Ekiti Journal of Finance and Commerce, 8(1), 68–82.

Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173 DOI: https://doi.org/10.1037/0022-3514.51.6.1173

CBN. (2011). Cash-less Nigeria policy overview. Retrieved from https://www.cbn.gov.ng/cashless

CBN. (2012). Cashless policy frequently asked questions. Retrieved from https://www.cbn.gov.ng/cashless/Cash-Less%20FAQs.pdf

Chawla, D., & Joshi, H. (2019). Scale development and validation for measuring the behavioral intention to use mobile banking. Global Business Review, 20(2), 434–457. https://doi.org/10.1177/0972150918825205 DOI: https://doi.org/10.1177/0972150918825205

Chima, U. C., & Onuorah, A. C. (2024). Technology acceptance and mobile banking adoption among SMEs in Nigeria. Journal of Information Technology Management, 13(2), 101–119.

Chukwuemeka, E., et al. (2023). Innovation and financial health as drivers of SME performance: Evidence from inclusive economies. Business and Economic Review, 6(1), 78–92.

Cocca, P., & Alberti, M. (2010). A framework to assess performance measurement systems in small and medium enterprises. International Journal of Productivity and Performance Management, 59(2), 186–200. https://doi.org/10.1108/17410401011010045 DOI: https://doi.org/10.1108/17410401011014258

Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008 DOI: https://doi.org/10.2307/249008

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104 DOI: https://doi.org/10.1177/002224378101800104

Gyamfi-Yeboah, L., et al. (2019). The impact of digital payment systems on SMEs’ performance. Technology, Organization and Environment, 13(4), 77–95.

Hair, J. F., Howard, M. C., & Nitzl, C. (2024). A primer on partial least squares structural equation modeling (PLS-SEM) using SmartPLS 4 (3rd ed.). SAGE Publications.

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE Publications. DOI: https://doi.org/10.1007/978-3-030-80519-7

Hassan, A., & Olaleye, A. (2024). Challenges of digital financial inclusion in rural Nigeria. Journal of Rural Economics & Development, 4(1), 39–56.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8 DOI: https://doi.org/10.1007/s11747-014-0403-8

Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20(2), 195–204. https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7 DOI: https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7

Ibrahim, H. M., & Musa, S. S. (2023). Cashless policy implementation and SME productivity in Nigeria. Nigerian Journal of Economics and Social Studies, 65(1), 22–41. https://doi.org/10.1111/njes.12345

Israel, G. D. (1992). Sampling the evidence of extension program impact: Program evaluation and organizational development. University of Florida, IFAS Extension. https://www.tarleton.edu/academicassessment/documents/Samplesize.pdf

Kenny, D. A. (2016). CM-moderation: Moderation. Retrieved August 30, 2025, from https://davidakenny.net/cm/moderation.htm

Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1–10. https://doi.org/10.4018/ijec.2015100101 DOI: https://doi.org/10.4018/ijec.2015100101

Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610. https://doi.org/10.1177/001316447003000308 DOI: https://doi.org/10.1177/001316447003000308

Kumar, A., & Iyengar, R. (2023). Sustainable growth and strategic adaptability in SMEs: Beyond financial metrics. International Journal of Business Growth, 14(3), 235–249.

Liengaard, B. D., Sharma, P. N., Hult, G. T. M., Hair, J. F., & Sarstedt, M. (2021). Prediction: Covariance-based vs. partial least squares structural equation modeling. Journal of Business Research, 132, 103–112. https://doi.org/10.1016/j.jbusres.2021.03.005

Muhammad, S., & Ibrahim, K. (2023). Socioeconomic factors influencing agent banking adoption in rural Nigeria. Nigerian Journal of Financial Inclusion, 8(1), 55–70.

Mukasa, J., & Phiri, B. (2025). An empirical investigation of the effect of cashless transactions on the financial performance of MSMEs at Carousel Shopping Mall, Lusaka, Zambia. Journal of Economics, Finance and Management Studies, 8(5), 2756–2775.

National Orientation Agency, Bichi Local Government. (2023). Number of registered SMEs in Bichi Local Government [Unpublished raw data].

Nnandi, E., & Okeke, T. (2023). Mobile banking as a vehicle for financial inclusion in underserved Nigerian communities. African Journal of FinTech Studies, 5(2), 150–169.

Ngugi, J. (2022). The impact of mobile banking and POS terminal usage on the growth of SMEs in Kenya. Journal of Small Business and Entrepreneurship Studies, 10(2), 145–160.

Nwosu, R. (2024). Resource management and market responsiveness in Nigerian SMEs. Journal of Small Enterprise Research, 15(1), 40–57.

Nwankwo, C., et al. (2022). Digital payment channels and entrepreneurship development in Nigeria. Nigerian Journal of Business and Economics, 25(3), 88–107.

Obi, R. C. (2023). Impact of cashless policy adoption on SMEs’ growth in Lagos. Nigerian Journal of Economics, 45(2), 176–192.

Ogunleye, A., & Adekunle, S. (2023). POS adoption and merchant readiness in Nigerian retail markets. Journal of Payment Technologies, 8(1), 65–80.

Okafor, C., & Obi, C. (2024). Adoption of POS terminals and its effect on retail SME performance. Journal of Electronic Payment Systems, 12(1), 56–70.

Olatunde, T., & Bello, F. (2024). Overcoming infrastructural barriers with agent banking: A Nigerian perspective. Journal of Rural Finance, 12(3), 199–214.

Olukotun, O., Gbolagade, O. L., & Abubakar, A. (2023). Cashless policy and patronage in Stanbic IBTC Bank Plc, Katsina, Nigeria. Journal of Business & Management, 1(3), 225–243. DOI: https://doi.org/10.47747/jbm.v1i3.1218

Onwubuya, O., et al. (2022). Trust, ease of use, and infrastructural support: Factors influencing cashless policy adoption. Technology and Society, 9(4), 290–305.

Osho, O., Akinbola, O., & Adepoju, T. (2019). An analysis of cashless policy implementation in Nigeria. Conference Proceedings, 71–78.

Ringle, C. M., Wende, S., & Becker, J.-M. (2024). SmartPLS 4 software. https://www.smartpls.com

Scott, W. R. (2004). Institutional theory. In G. Ritzer (Ed.), Encyclopedia of social theory (pp. 408–414). Sage Publications.

Suleiman, H., & Eze, C. (2023). Cashless policy adoption as a socio-technical transition in Nigeria. Journal of Economic Policy and Innovation, 7(2), 105–123.

Swain, A. K. P. C. (2008). A textbook of research methodology. Kalyani Publishers.

Thapa, S., & Saito, S. (2023). Influence of cashless policy on the growth of SMEs: Evidence from Nepal. Journal of Entrepreneurial Studies, 12(1), 45–60.

Tunde, L., et al. (2025). Behavioral change and institutional support: The dynamics of cashless policy adoption. International Journal of Financial Reform, 11(1), 45–63.

Usman, A. (2024). Impact of cashless policy on the performance of small and medium scale enterprises in Bauchi Metropolis, Nigeria. African Journal of Economic and Management Studies, 15(2), 101–118.

Yakubu, M., & Lawal, A. (2024). Mobile banking adoption and its operational efficiency in rural Nigerian SMEs. Journal of Emerging Markets, 10(2), 210–229.

Yusuf, A., Musa, B. B., & Ahmadu, A. (2024). Effect of conflict handling styles on employees’ performance in Federal College of Education, Technical, Bichi, Kano State. Akungba Journal of Management, 6(1), 189–207.

CASHLESS POLICY ADOPTION AND SMALL AND MEDIUM ENTERPRISES (SMEs) PERFORMANCE IN BICHI, KANO STATE

Authors

Keywords:

Abstract

REFERENCES

Published

How to Cite

Issue

Section

How to Cite

Most read articles by the same author(s)

Latest publications

Information

Make a Submission

Browse