The Impact of Information and Communication Technology On the Growth of the Banking Sector in Nigeria (2009–2024)

• Author(s): Adesanya A. Mercy; Dr. Sabiu S. Bariki
• Paper ID: 1718719
• Page: 3706-3715
• Published Date: 07-07-2026
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 12 June-2026

Abstract

This study empirically investigates the long-run and short-run impacts of Information and Communication Technology (ICT) on the growth of the banking sector in Nigeria from 2009 to 2024. Utilizing the study employs the Autoregressive Distributed Lag (ARDL) cointegration framework. Banking sector growth (BGRW) is operationalized as the dependent variable, while digital financial channels—Automated Teller Machines (ATM), Point of Sale (POS) systems, mobile banking (MOB), and internet banking (INTB)—serve as the principal explanatory variables. Financial development (FD) and inflation (INF) are incorporated as macroeconomic control variables. The empirical results reveal a mixed-stationarity profile among the variables, validating the suitability of the ARDL Bounds testing technique. The long-run estimations indicate that ATM transactions, POS transactions, and mobile banking significantly and positively influence banking sector growth in Nigeria. Internet banking, however, exhibits a negative and statistically insignificant impact in both the short-run and long-run estimations. Financial development contributes positively to banking sector growth over the long run, while inflation demonstrates significance only within the short-run horizon. The study concludes that digital banking channels represent critical drivers of financial intermediation and institutional growth within Nigeria’s banking system. However, infrastructural deficiencies, cybersecurity concerns, and digital literacy gaps continue to limit the full realization of ICT benefits. The study recommends increased investment in digital infrastructure, expansion of rural financial technology access, stronger cybersecurity frameworks, and intensified financial literacy campaigns to sustain the long-term growth of the Nigerian banking sector.

Keywords

Information and Communication Technology, Banking Sector Growth, ARDL Framework, Financial Intermediation, Nigeria.

Citations

IRE Journals:
Adesanya A. Mercy, Dr. Sabiu S. Bariki "The Impact of Information and Communication Technology On the Growth of the Banking Sector in Nigeria (2009–2024)" Iconic Research And Engineering Journals Volume 9 Issue 12 2026 Page 3706-3715

IEEE:
Adesanya A. Mercy, Dr. Sabiu S. Bariki "The Impact of Information and Communication Technology On the Growth of the Banking Sector in Nigeria (2009–2024)" Iconic Research And Engineering Journals, vol. 9, no. 12, Jun. 2026

APA:
Adesanya A. Mercy, Dr. Sabiu S. Bariki (2026). The Impact of Information and Communication Technology On the Growth of the Banking Sector in Nigeria (2009–2024). Iconic Research And Engineering Journals, 9(12).

MLA:
Adesanya A. Mercy, Dr. Sabiu S. Bariki "The Impact of Information and Communication Technology On the Growth of the Banking Sector in Nigeria (2009–2024)" Iconic Research And Engineering Journals, vol. 9, no. 12, Jun. 2026.

BibTeX

@article{1718719,
author = {Adesanya A. Mercy, Dr. Sabiu S. Bariki},
title = {The Impact of Information and Communication Technology On the Growth of the Banking Sector in Nigeria (2009–2024)},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {9},
number = {12},
pages = {3706-3715},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1718719.pdf},
abstract = {This study empirically investigates the long-run and short-run impacts of Information and Communication Technology (ICT) on the growth of the banking sector in Nigeria from 2009 to 2024. Utilizing the study employs the Autoregressive Distributed Lag (ARDL) cointegration framework. Banking sector growth (BGRW) is operationalized as the dependent variable, while digital financial channels—Automated Teller Machines (ATM), Point of Sale (POS) systems, mobile banking (MOB), and internet banking (INTB)—serve as the principal explanatory variables. Financial development (FD) and inflation (INF) are incorporated as macroeconomic control variables. The empirical results reveal a mixed-stationarity profile among the variables, validating the suitability of the ARDL Bounds testing technique. The long-run estimations indicate that ATM transactions, POS transactions, and mobile banking significantly and positively influence banking sector growth in Nigeria. Internet banking, however, exhibits a negative and statistically insignificant impact in both the short-run and long-run estimations. Financial development contributes positively to banking sector growth over the long run, while inflation demonstrates significance only within the short-run horizon. The study concludes that digital banking channels represent critical drivers of financial intermediation and institutional growth within Nigeria’s banking system. However, infrastructural deficiencies, cybersecurity concerns, and digital literacy gaps continue to limit the full realization of ICT benefits. The study recommends increased investment in digital infrastructure, expansion of rural financial technology access, stronger cybersecurity frameworks, and intensified financial literacy campaigns to sustain the long-term growth of the Nigerian banking sector.},
keywords = {Information and Communication Technology, Banking Sector Growth, ARDL Framework, Financial Intermediation, Nigeria.},
month = {June}
}