Research Article

EFFECT OF FINTECH ADOPTION ON THE LIQUIDITY OF INSURANCE FIRM IN NIGERIA

Agbo Henry, Onyike1*, Dr. Nyahas Samson Iliya2
1 University of Jos
2 UNIVERSITY OF JOS
* Corresponding author: onyikeagbo@gmail.com
Published: Jul, 2026
DOI: 10.67862/nahj.2026.yr452fov
Pages: 106-122

Abstract

This study investigated the effect of FinTech adoption on the liquidity of insurance firms in Nigeria, with a focus on ATM, POS, Web Pay, and Mobile Pay transactions as proxies for digital adoption. Liquidity is measured using the current ratio, capturing firms’ ability to meet short-term obligations. Using a quantitative, explanatory panel data approach, data were collected from 15 Nigerian Exchange-listed insurance firms over six years (2019–2024). Descriptive, correlation, and fixed-effects panel regression analyses were employed to assess the effect of FinTech adoption on liquidity while controlling for firm size, premium growth, and leverage. The findings revealed that ATM transaction volume has a positive and significant effect on the liquidity of insurance firms in Nigeria, POS transaction volume has positive and significant effect on the liquidity of insurance firms in Nigeria, web pay transaction volume has positive and significant effect on the liquidity of insurance firms in Nigeria and mobile pay transaction volume has positive and significant effect on the liquidity of insurance firms in Nigeria. It was recommended that Insurance firms should invest in robust digital platforms, especially Mobile Pay and Web Pay solutions, to accelerate premium collection and reduce working capital pressure. It was recommended also that NAICOM and CBN should provide policy incentives, such as reduced reporting requirements or tax breaks, to encourage insurers to adopt and integrate FinTech solutions.

Keywords

FinTech Adoption; Liquidity; Insurance Firms; ATM transaction POS transaction volume web pay transaction and mobile pay transaction volume

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How to Cite

Onyike, A. H., & Iliya, D. N. S. (2026). EFFECT OF FINTECH ADOPTION ON THE LIQUIDITY OF INSURANCE FIRM IN NIGERIA. Nigerian Accounting Horizon Journal, 11(1), 106-122. https://doi.org/10.67862/nahj.2026.yr452fov

A. H. Onyike, and D. N. S. Iliya, "EFFECT OF FINTECH ADOPTION ON THE LIQUIDITY OF INSURANCE FIRM IN NIGERIA," Nigerian Accounting Horizon Journal, vol. 11, no. 1, pp. 106-122, July 2026. doi: 10.67862/nahj.2026.yr452fov

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