ELECTRONIC PAYMENT SYSTEM IN NIGERIA: IMPLEMENTATION,CONSTRAINTS AND SOLUTIONS. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
The study investigates the Federal Government of Nigeria electronic payment system implementation and the constraints confronting it with a view to providing solutions to the constraints so identified. The study is motivated by the apparent low level of satisfaction with the level of e-payment system in Nigeria. In carrying out the study, government agencies, contractors and the banks formed the population witha total of 200 respondents sampled through convenient sampling method and the analysis is based principally on the primary data collected from the
respondents. The study identified constraints that are bedeviling the system and also suggested recommendations for effective implementation of the system.
Since the overcoming of barter in the history of mankind, trade usually involve the exchange of goods and services and an equivalent
abstract value such as money. (Sadeghi & Schneider, 2001). Ever since money was invented as an abstract way of representing value, system for making payments have been in place. In the course of ime, new and increasingly abstract representations of value were introduced. A corresponding progression of value transfer systems, starting from barter, through bank notes, payment orders, cheques and later credit cards, has finally culminated in electronic payment systems. As the transition to electronic payment systems take place, the stock of currency held outside the banking system which constitutes a potential source of unproductive economic resources because they are not available for credit expansion is integrated into it
thereby expanding the deposit base of the monetary system. Nigeria payment system has been predominantly cash-based for both positive and negative reasons: positive because of its instant convertibility to other forms of value without intermediation of any financial
institution and negative because of its anonymity and un-traceability in unethical transactions. Electronic payment was introduced because government was inundated with allegations of corruption in the
Federal Civil Service. The Federal Government through its treasury
circular reference No TRY/A8 & B8/2008 of 22ndOctober, 2008 directed that payments from all funds from it be made electronically as from 1stJanuary, 2009. The policy has been condemned by all and sundry for lack of planning, inefficiencies and delay in the payment for goods and services, hence this article extends and contributes to the body of knowledge to assess the implementation and constraints of the system with a view to proffering solutions to them. Statement of the Problem With the rapid growth of Information and Communication Technology (ICT), electronic commerce is now acting as a means of carrying out business transactions through electronic means such
as internet connections (Anik and Pathan, 2002). E-commerce is the most recent step in the evolution of business transactions as it replaces or augments the swapping of money or goods with the exchange of electronic payment system in Nigeria.