Automated Teller Machine, Point-of-Sale Transactions and Financial Sector Development in Nigeria

This study examines the effects of automated teller machine (ATM) and point-of-sale (POS) transaction values on financial sector development in Nigeria from 2010Q1 to 2024Q4. Using an ex post facto research design, quarterly time-series data were obtained from the Global Data Index, World Development Indicators, and the Central Bank of Nigeria Statistical Bulletin 2024. Based on the unit-root test results, the study estimated an autoregressive distributed lag (ARDL) model. The short-run results indicate that ATM transactions have a positive but statistically insignificant effect on financial sector development, whereas POS transactions have a negative and statistically significant effect. In the long run, ATM transactions have a positive and statistically significant effect, while POS transactions have a negative and statistically significant effect. The study recommends expanding reliable ATM access in underserved areas and strengthening the monitoring and regulation of POS operations to reduce fraud and service failures.

Automated teller machine; point-of-sale transactions; financial sector development; credit to the private sector

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