Automated clearing system and the banking sector performance: the Nigerian experience

This study investigated the impact of automated clearing system on the Nigerian banking system. Secondary data were mostly sourced through The Central Bank of Nigeria publications and analyzed using t test statistics, which tested the significant difference between pre, and post automated clearing system. The result revealed that automated clearing system has a significant positive impact on the general payment system. The paper concludes that the post NACS era is more efficient and hence we recommend the application of the automated clearing system that may further reduce the delivery settlement period from current T3 to To Key Words: Nigeria Automated Clearing System, Delivery period, Magnetic Inks Character Recognition, Payment system, Nigeria Inter Bank Settlement System.