Government Cashless Policy and Poverty Reduction in Ife Central Local Government, Osun State, Nigeria:

Further Evidence from Point of Sale (POS) Utilisation

Abstract

The study examines the impact of government cashless policy on poverty reduction with a view to assessing the extent to which the utilisation of point of sale (POS) system contributes to poverty reduction among POS operators in the study area and also identifying the challenges and opportunities associated with the adoption of point of sale (POS) system.

This research relies on primary data collection. Structured questionnaires are administered to gather original data from the 50 POS operators, which represent the respondents for the analysis. Descriptive statistics such as frequency analysis and logistic regression are adopted.

The result shows that POS has a positive impact on the economy. Specifically, 94% of the operators are in support that POS systems are frequently used as a mean of transaction for the general public and a mean of livelihood for the operators reflecting their importance in economic growth. The estimated result from logistic regression analysis reveals that the POS system has significant positive economic and employment benefits, by facilitating transactions of local businesses, which led to poverty reduction among the operators. The study also finds that unstable power supply and limited internet connectivity as the major challenges confronting the POS operators.

The study concludes that Point-of-Sale (POS) systems are having a significant positive impact on poverty reduction, which led to job creation and economic growth among the operators in Ife Central Local Government area. The study therefore, recommends for an improved power supply and technology for better POS system adoption.