Conference Paper

Digital Financial Services and Environmental Sustainability in Nigeria

This study investigated the nexus between digital financial services and environmental sustainability in Nigeria using quarterly data over the period of 15years (2009-2023). The study employed ex post facto research design and measured environmental sustainability by CO2 tons per capita while digital financial service was proxied by Volume of Automated Teller Machine (VATM), Volume of Point of Sale (VPOS), Volume of Mobile Payment (VMP), Volume of WebPay (VWPAY), Number of Commercial Bank Branches (NOB) and Individual Access to Internet (IDT). The data were sourced from Central Bank of Nigeria (CBN) statistical bulletin and World Bank Development Indicators. The data were analyzed using descriptive statistics, correlation analysis, Autoregressive Distributed Lag (ARDL) and Error Correction Model (ECM). Based on the ARDL results, the study found that both short and long run relationship exists between digital financial services and environmental sustainability in Nigeria. Consequently, ECM analysis was conducted and it was found that short disequilibrium will be corrected in the long run at 35%. The study concluded that digital financial service instruments are the ingredient of environmental sustainability in Nigeria. It was therefore recommended that central bank of Nigeria should give adequate digital finance directives to all banks in order to embrace, adapt and shift to digital technology performance to achieve sustainable environment.