Digital Mobile Payment and Economic Growth in Kenya and Nigeria: A Comparative Analysis

Umunna Nwagu; Kingsley Arinze Muogbo; Nnenna Maryrita  Akah; Jane Oluchukwu Ozor

doi:10.63356/ace.2026.008

Authors

Umunna Nwagu Faculty of Social Sciences and Business, Maduka University Ekwegbe-Nsukka https://orcid.org/0000-0001-6579-3273
Kingsley Arinze Muogbo Faculty of Social Sciences and Business, Maduka University Ekwegbe-Nsukka https://orcid.org/0009-0003-0797-6014
Nnenna Maryrita Akah Entrepreneurship Unit, Maduka University Ekwegbe-Nsukka https://orcid.org/0009-0009-9863-0249
Jane Oluchukwu Ozor Faculty of Social Sciences and Business, Maduka University Ekwegbe-Nsukka https://orcid.org/0009-0008-8805-0358

DOI:

https://doi.org/10.63356/ace.2026.008

Keywords:

digital mobile payment, economic growth, Kenya, Nigeria, ARDL

Abstract

Mobile payment technology allows digital transactions via smartphones and tablets using methods like NFC, QR codes, and payment apps. This innovation enables consumers to purchase goods and services without physical cards or cash. The global mobile payment market, valued at $2.98 trillion in 2023, is expected to grow to $27.81 trillion by 2032, changing how customers engage with businesses and manage finances. In Nigeria and Kenya, mobile phones serve as vital tools for financial services, e-commerce, and entertainment. This study aims to compare the adoption of digital mobile payments and their impact on economic growth in these countries. It uses quarterly data from Q1 2010 to Q4 2024 from the Central Banks of Kenya and Nigeria, employing the Auto-Regressive Distributed Lag (ARDL) model for analysis. Unit root tests showed variables were integrated of I(0) and I(1), and co-integration tests confirmed long-term relationships. Findings reveal that mobile money payments significantly influence economic growth in both nations, with mixed short-term effects and a positive long-term correlation. The study recommends collaboration among regulators, mobile network operators, fintech firms, and banks to enhance mobile financial services in both countries.

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