Economics Project Topics

An Evaluation of the Role of POS Business in Employment Generation in Nigeria





A point of sale, also known as a point of purchase, is a system that helps local debit cardholders to make withdrawal of money and pay for goods and services.

This machine is mostly used in retail stores where consumers use their ATM cards to pay for goods or services.  Any utility bills, such as power, airtime, cable or decoder subscriptions, are often paid using a POS device. Hence, with the increasing use of advanced electronic technologies for e-funds around the world, the introduction of POS into the Nigerian economy has facilitated the ease of doing business without having to carry large sums of cash in one’s wallet.

The use of POS terminals to make financial payments in Nigeria was introduced by the Central Bank of Nigeria (CBN) in 2012 to promote its cashless policy with the aim of improving the payment system. Ever since the introduction, there has been increasing growth in the number of active POS terminals provided by banks to mobile money merchants. This was due to the acceptability of POS transactions in society. However, this opportunity was explored by the majority of Nigerians who were desperately seeking an employment opportunity and daily source of revenue (Carlos 2014). The desire to make a living, despite Nigeria’s devastated economy and unpalatable rate of unemployment, resulted in an astonishing increase in the number of money merchants or POS businesses in the country, because the opportunity was regarded as a potential and lucrative business and employment opportunity.Traceably, in the first three months of 2018, it was reported that a total of 17,193 POS terminals were registered by banks for carrying out cashless transactions in Nigeria (Ogunfuwa, 2018). Statistical figures from the Nigeria Inter-Bank Settlement Scheeme (NIBSS) indicated that as of 2018, the number of active POS terminals in Nigeria was 164,607. This evidence therefore clarifies the fact that there is a massive increment in the number of POS businesses and money markets in Nigeria. Thus, this study is riveted towards assessing the very impact of POS as a business endeavor on employment generation in Nigeria.


Unemployment is one of the fundamental developmental challenges facing Nigeria at the moment. Although research has shown that unemployment was high in the 1980s, available reports from various local and international bodies, as well as the glaring evidence of joblessness in these decades, indicate that there was no time in Nigeria’s history when unemployment was not a problem.


Youth and non-youth unemployment in Nigeria has been increasing as the number of students graduating from institutions has increased.The Nigerian National Bureau of Statistics (NBS) (2017) while inferring from the International Labour Organization’s (ILO) definition of unemployment, states that the unemployed population are those in the labour force, or people of working age, that is, between ages 15-64, who were willing and actively looking for work, but could not find for not less than 20 hours (NBS, 2017).

However, the increasing rate of economic recession has worsened the unemployment in Nigeria. This has led to many of the citizens in scummy poverty. But however, the introduction and availability of POS in Nigeria has in the long run brought smiles to people’s faces and provided income opportunities for many jobless Nigerians. As a result, there has been an increase in the number of individuals who ventured into POS businesses owning up to 2, 3 and above number of POS business outlets, thereby employing workers to manage the outlets.

Read Too:  Impact of Macro Economic Factors on Money Supply in Nigeria


The major aim of this research epistle is to evaluate the role of POS business in employment generation in Nigeria.  In respect to the above, below are the specific objectives:

  1. Investigate if the POS business is a profitable venture for unemployed Nigerians.
  2. Investigate if the invention of POS in Nigeria has served as an employment opportunity for unemployed Nigeria.
  3. Examine the extent to which the availability and the use of POS has served as a source of income for the owners of POS business centers.


1.        Is POS business a profitable venture for unemployed Nigerians?

2.        Has the invention of POS in Nigeria served as an employment opportunity for unemployed Nigeria?

3.        To what extent has the availability and the use of POS served as a source of income for the operators of POS business centers?


This study and its findings will be of great significance to the banking sector as it explores how the adaptation of POS by the banking sector has served as an employment opportunity for many initially jobless Nigerians, thereby reducing the pressure of unemployment in the country.

Furthermore, for students, teachers, lecturers and researchers who may likely carryout a study similar to this, this study will also serve as a source of information to such an individual.


The scope is the study limited to;

Investigating if POS business is a profitable venture for unemployed Nigerians; ascertaining if the invention of POS in Nigeria has served as an employment opportunity for unemployed Nigeria and examining the extent to which the availability and the use of POS has served as a source of income for the owners of POS business centers.

Therefore, the respondents of this study shall be limited to operators of POS business in Warri, Delta State,  Nigeria.


The main limitation of this research, among others, include time constraints, as the writer only had a limited amount of time to complete it. Financial constraints and language barriers, in particular, were significant limiting factors in this research.


Business: The term “business” also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

POS: POS stands for point of sale. A point-of-sale (POS) transaction is what takes place between a merchant and a customer when a product or service is purchased, commonly using a point of sale system to complete the transaction. Merchants typically use a POS system to complete a sales transaction. It also offers other banking services such as cash deposition, cash transfer, cash withdrawal and many others.

Employment: this is a relationship between two parties, usually based on contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit organization, co-operative or other entity is the employer and the other is the employee.



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