NAME: ONUORA, ANASTASIA CHI=CHI (MSc)
DEPARTMENT: FINANCIAL MANAGEMENT TECHNOLOGY
AFFILIATION: FEDERAL UNIVERSITY OF TECHNOLOGY OWERRI, NIGERIA
This study evaluated the impact of the central clearing and settlement
system on the performance of the Nigeria financial payment process.
Therefore, our focus was on the impact of the use of the automated
clearing system on the payment system, as there was problem of
payment taken long period to consume than necessary. The study
covered the period, 1997-2006. To be able to assess the performance of
the automated clearing system, the study period was separated into two,
one period covering the period before the introduction of the Nigerian
Automated Clearing System and referred to as the Pre-NACS era, while
the period after the introduction is known as the post-NACS period.
Applying the difference between two means t-statistic which tested
significant difference between pre and post automate clearing system.
The result revealed that the automated clearing system has significant
positive impact on the volume of cheques cleared, second on the value
of transactions between the two periods. This leads us to conclude that
the introduction of the Nigerian Automated Clearing System actually has
a significant positive impact on the general payment system. Hence, we
recommend the application of the automated clearing system to the
extent that delivery/settlement period becomes further reduced from the
current T-3 to T-0. With this in place, cheques once presented can be
settled immediately to enchance the general performance in the system.
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