Negotiable instruments and the Nigeria Financial System

This study focused on the Perception of negotiable instruments in the Nigeria Financial System. It seeks to provide insight into the perceived perception on the use of negotiable instruments. A total of 210 bank customers participated in this study. The descriptive survey research method was adopted. Simple percentage was used to analyze the questionnaire responses while t-test statistical technique was used to test the formulated null hypotheses. Findings revealed that literacy affected the use of negotiable instruments, though; negotiable instruments are widely used, but the acceptance level is however very low. It was also revealed from the findings that there is peace and security in the use of negotiable instruments. Findings also revealed that there is risk reduction on the use of negotiable instrument on businesses when compared to cash payment system. Significant difference existed between the use of cash and promissory notes in the Nigeria financial system. The lack of trust and acceptance of negotiable instruments, made the use of cash as basis for settling payments most acceptable because it creates liquidity though at very high risk. Finally, the researcher recommended among others that the government should discourage the use of cash as source of settling payments in the Nigeria financial system while effort should be made to promote the cashless policy in lieu of cash payments.