An Evaluation of the Role of POS Business in Employment Generation in Nigeria
Chapter One
OBJECTIVES OF THE STUDY
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:
- Investigate if the POS business is a profitable venture for unemployed Nigerians.
- Investigate if the invention of POS in Nigeria has served as an employment opportunity for unemployed Nigeria.
- 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.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
introduction
The Central Bank of Nigeria (CBN, 2011) noted that Nigeria’s aspiration to become one of the top twenty economies in the world could only come to fruition when all the enabling institutions and partners are fully functional. CBN also believe that the vision depends largely on the proposed e-payment system upon which the cashless policy will be established. This readily brings to mind a need to assess the institutions that will power the e-payment system among which are the acquirers, merchants, users, NIBSS, payment terminal service aggregators, payment terminal service providers (PTSPs) and other facilitators. The statutory responsibilities of the PTSPs to acquirers cover all aspects relating to terminal management and support, including but not limited to purchase and replacement of spare parts, provision of connectivity, training, repairs, and development of value-added services, amongst other things. These services rendered by the PTSPs are to increase access to cashless services by Nigerians. The hitches discovered in the cashless Lagos campaign such as poor communications network, limited POS deployed, interoperability of cards on the platforms, poor response time to customer complaints and user apathy, necessitates the probing of the statutory responsibilities of the PTSPs (Sanusi, 2011). Previous studies have been done as regards the adoption of point of sales terminal in Lagos State and Nigeria respectively from the perspective of consumer level of satisfaction (Adeoti and Osotimehin, 2012; Omotayo and Dahunsi, 2015). Also there was a study about the empirical assessment of the operational efficiency of electronic banking in Nigerian banks (Ekwueme, Egbunike, and Okoye, 2012). Adeoti (2013) studied the challenges to the efficient use of point of sales terminals in Nigeria. However, none of the previous studies researched from the perspective of the payment terminal service providers (PTSPs) as regards the challenges faced by merchants in the use of the payment terminals provided by the PTSPs, and the influence on SMEs’ business. In view of this gap, this study centered on the general evaluation of the performance of PTSPs with respect to the challenges merchants face in the use of the terminals provided by the payment terminal service providers (PTSPs), as well as how the operations of this payment terminals influence the performance of SMEs in line with driving the CBN’s cashless initiative in Nigeria. The statistics given by the NIBSS (2018) affirmed that only 109, 916 representing 77 percent of the total registered POS machines have been successfully deployed and connected. This leaves 23 per cent inactive. If the policy is to succeed, drastic measures should be taken to eradicate the flaws and systemic inadequacies being experienced, especially those accruing to PTSPs. To this extent, the centrality of a cashless system to our economy amplifies the urgency of a scientific inquiry of this nature, into how efficient the licensed PTSPs in Nigeria have operated so far. This study could help examine the challenges faced by merchants in the use of point of sale terminals and further access the influence of point of sale terminal system on the performance of the SMEs’ businesses in Lagos State. Studies have shown that challenges emanating from cashless campaigns have proven the indispensability of payment terminal service providers (PTSPs) in the success of the exercise. Literature has however paid little attention to the influence of the point of sale terminal service on the performance of the SMEs. It is therefore necessary to undertake more investigation on the issue to solve these identified problems
What are the Advantages of POS machines?
As of April 2020, 46% of in-person grocery shoppers in the US used a Credit card, 39% used debit cards, and 15% used cash. The population largely use POS terminals to pay for their purchases. In general terms, a Card Swipe Machine is called POS Terminal, which is used to collect payments from customers.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine an evaluation of the role of POS business in employment generation in Nigeria. Selected POS points in Lagos state forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain an evaluation of the role of POS business in employment generation in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of an evaluation of the role of POS business in employment generation in Nigeria
Summary
This study was on an evaluation of the role of POS business in employment generation in Nigeria. Three objectives were raised which included: Investigate if the POS business is a profitable venture for unemployed Nigerians, investigate if the invention of POS in Nigeria has served as an employment opportunity for unemployed Nigeria and 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. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected POS points in Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The study revealed that point of sales terminal system usage had positive significant effect on employment Lagos state, Nigeria as an area of study. It further reveals that utilizing point of sale terminals is a pre-requisite for SMEs to improve overall performance. Managers and owners of businesses in Lagos state should adopt the use of POS terminal in their organizations as it improves businesses.
Recommendation
Government should help young graduates with POS machines for easy operation for reduction of unemployment in Nigeria.
References
- Adeoti, O. O. (2013). ‘Challenges to the Efficient Use of Point of Sales (POS) Terminals in Nigeria’. African Journal of Business Management, 7(28), 2801-2806.
- Adeoti, O. O., & Osotimehin, K. O. (2012). ‘Adoption of Point of Sales Terminals in Nigeria: Assesment of Consumer’s Level of Satisfaction’. Research Journal of Finance and Accounting, 3(1), 1-5.
- Akano, E. (2012). Lessons from Nigeria’s Cashless Society Campaign. AITEC, 7. Available at http://aitec.usp.net/AITECBanking&MobileMoneyCOMESA (accessed 2 March 2012)
- Akhalumeh, P. B., & Ohioka, F. (2011). ‘Nigeria’s Cashless Economy: The Imperatives’. International Journal of Management & Business Studies, 2, 12-17.
- Ashike, H. (2011). ‘Cashless Economy can Reduce Risk of Carrying Huge Cash’. Businessday. Available at http://www.businessdayonline.com
- Bester, A. M., and Bronkhorst, S. (2015). Utilization of Payment Instruments at a Retail Chain in Guateng. Acta Commercii, 15(1), 318-325. doi:http://dx.doi.org/10.4102/ac.v15i1.318
- Central Bank of Nigeria. (2011). ‘Money Market Indicators & Money and Credit Statistics’. CBN Statistical Bulletin, 1, 12-19.
- Central Bank of Nigeria. (2013). Towards a Cash-less Nigeria: Tools and Strategies. Available at http://cenbank.org/cashless/ (accessed 12 August 2019)
- David, J. (2012). Cashless Society: In the Cashless Society. Boston: Academic Publisher
- Davis, F. (1989). ‘Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology’. MIS Quaterly, 13(3), 319-340. doi:http://dx.doi.org/10.2307/249008
- Ekwueme, C. M., Egbunike, P. A., & Okoye, A. P. (2012). ‘An Empirical Assesment of the Operational Efficiency of Electronic Banking:
