EFFECT OF GREEN BANKING INITIATIVES ON ECONOMICGROWTH IN NIGERIA USING FINANCIAL TECHNOLOGY APPROACH

Abstract

This study investigates the effect of green banking on economic growth in Nigeria using a financial technology perspective over the period 2013–2023. Quarterly time-series data were analysed using the Augmented Dickey–Fuller and Phillips–Perron unit root tests, alongside the Johansen cointegration technique, a parsimonious error correction model, and the fully modified ordinary least squares method. Model reliability was assessed through diagnostic tests, including the ARCH heteroskedasticity test, histogram normality test, and CUSUM stability test. The findings reveal that point-of-sale (POS) transactions exert a positive and statistically significant effect on gross domestic product (GDP), whereas mobile banking and webbased payments display negative but insignificant effects on economic growth. Automated teller machine (ATM) transactions were found to have a negative and significant impact on GDP at the 5 per cent level. In conclusion, green banking initiatives, supported by financial technology innovations have the potential to drive sustainable economic growth in Nigeria. Consequently, the study recommends that the Central Bank of Nigeria intensify efforts to expand POS infrastructure, particularly in underserved and rural areas, to promote financial inclusion and economic growth.