Digital money and youth spending behavior in Ebonyi State, Nigeria

Abstract

This paper examines digital money adoption and use among youths in Ebonyi State, Nigeria, and how it influences their spending behavior. A convergent mixed-methods design was adopted, and data were collected through structured questionnaires administered to 400 respondents and 20 in-depth interviews. The study used both qualitative and quantitative data-collection methods. Thematic analysis was used to analyze the qualitative data, whereas descriptive statistics, multiple regression, and correlation analysis were used to analyze the quantitative data. The findings reveal a high adoption rate of 72% among youths, driven by education, income, financial literacy, social influence, and trust. Digital money use substantially increased spending, especially on mobile data, airtime, and peer-to-peer transfers. Adoption is constrained by trust and risk concerns, and youths deploy various strategies to mitigate these risks. The paper recommends adequate financial education, infrastructural improvement, and stricter financial regulatory interventions to strengthen trust and promote responsible use. These findings contribute to understanding digital money adoption and its behavioral implications in sub-national Nigerian contexts.