BJAR British Journal of Advanced Research BJAR 3153-709X Ivory and Finch Publishers 10.68263/BJAR-6MJ723DX BJAR_AUG_26_033 Original Research Article ELECTRONIC BANKING AND THE PERFORMANCE OF SMEs IN OGBIA LOCAL GOVERNMENT AREA OF BAYELSA STATE, NIGERIA David Bunaebi (PhD) Sese Department of Economics and Development Studies, Federal University, Otuoke, Bayelsa State, Nigeria davidbs@fuotuoke.edu.ng Ebierinyo Ayebaemi PhD Akarara, https://orcid.org/0000-0003-1591-1141 Department of Economics, Faculty of Social Sciences, Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria 10 09 2026 1 3

This study examined the impact of electronic banking on the performance of Small and Medium Enterprises (SMEs) in Ogbia Local Government Area, Bayelsa State. Specifically, it identified electronic banking services used by SMEs, assessed their effect on transaction efficiency, examined adoption challenges, and determined their overall impact on SME performance. The study adopted a descriptive survey design, with a sample of 303 respondents selected using the Taro Yamane formula. Data were collected through a structured questionnaire, with 296 valid responses representing a 97.7% response rate. Descriptive statistics were used to analyse the research objectives, while binary logistic regression tested the hypothesis at the 5% significance level. Findings revealed widespread use of SMS alerts, POS, mobile banking, internet banking and ATM services. Electronic banking significantly improved transaction speed, cash flow management, payment processing and reduction of transaction errors. However, poor internet connectivity, security concerns, high transaction charges, limited digital knowledge and inadequate bank support constrained adoption. The regression results showed a positive and significant effect of electronic banking on SME performance, with POS services exerting the strongest influence. The study recommends improved digital infrastructure, reduced transaction charges, enhanced cybersecurity and increased financial literacy.

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