ASSESSMENT OF THE EFFECT OF CASHLESS POLICY ON SUPERMARKETS AND PETROL STATIONS OPERATIONS IN ONDO STATE, NIGERIA

Abstract

This study assessed the effect of cashless policy on SMEs operations with specific focus on supermarkets and petrol stations in Ondo State, Nigeria. The survey method was used in order to randomly select samples chosen from the population under study. The population comprised all operators/managers and customers of registered supermarkets and petrol stations in Ondo State. From a population of about 75 and 286 registered supermarkets and petrol stations respectively, a sample of 36 owners of supermarkets and petrol stations and 300 customers were randomly selected from six towns across the three senatorial districts in Ondo State. These towns are Akure, Ondo, Owo, Ikare, Ore and Okitipupa. The responses from the questionnaires were analyzed using tables, as well as descriptive and inferential statistics. The findings from this study showed that cash, as a payment option is mostly preferred by 85% of the customers, with a relative importance index (RII) of 0.90, though they have opportunities to use other payment options. Reasons, such as, unavailability of network, credit error, POS failure, amongst several others were found to have contributed to the customer’s choice of cash in making payments. The research findings also showed that consumers also preferred POS for transactions, with a relative importance index (RII) of 0.81. It was found that POS are most utilized at the supermarkets than petrol stations. In addition, the study accepted the null hypotheses that consumers do not prefer alternative modes of payment other than cash for business transactions in supermarkets and petrol stations, and that the use of electronic modes of payment has no significant effect on the operations of supermarkets and petrol stations in Ondo State at a 95% level of confidence. The study concluded that the introduction of cashless economy in Nigeria, although a step in the right direction, requires great planning in its application and is expected to have a great impact in the modernization of the Nigerian payment system. The study recommended based on its findings that SMEs such as supermarkets and petrol stations need to increase the knowledge capacity of their staff as well as creating more awareness on the benefits of electronic payments to their customers so as to improve efficiency in the implementation of the cashless policy.