Economics Education and Counselling in Addressing Naira Note Scarcity Impacts on Point-of-Sale Businesses in Abuja

Abstract

The study examined economic education and counselling in addressing naira notes: Impacts on Point-of-Sale businesses in Abuja. The scarcity of naira notes, exacerbated by recent monetary policies and economic disruptions, has significantly affected small and medium-sized businesses relying on POS services for cash-based transactions. This study investigates how economics education can empower people and businesses with financial literacy, adaptive strategies, and innovative solutions to mitigate the adverse effects of currency scarcity. Counselling interventions are also examined as a means to support business owners and individuals in managing stress, navigating financial uncertainty, and adopting alternative payment methods. The study revealed that POS businesses experienced a sharp decline in transaction volumes as customers struggled to access cash. To cope with the scarcity, many POS operators raised transaction fees, leading to customer dissatisfaction and reduced patronage. The scarcity of cash led to increased queues, delayed transactions, and frustration among customers and operators. There was a notable increase in the use of digital payment methods, such as bank transfers and mobile money, as an alternative to cash transactions, and economic education provided insights into monetary policies and their implications, enabling businesses to adapt more effectively to the scarcity. The study recommended that capacity-building programs in collaboration with financial institutions, fintech companies, and government agencies organise and train operators on integrating these technologies into daily operations for seamless service delivery, among several others.