This study was aimed at analyzing the impact of local and small scale banking services on economic development of Nigeria with particular focus on point of sales (POS) and Akawo businesses in Omoku, Rivers State. The study employed a survey research design, in which a sample size of 110 respondents was drawn from a population of 152 owners and managers of POS and Akawo businesses in Omoku community in Rivers State using the Taro Yamane sample size formula. The correlational index of 0.84 was used for the reliability of the instrument. The simple random sampling technique was applied to get the number of respondents. The study used questionnaire as the primary sources of data collection. The data were analyzed using descriptive statistics, frequencies and arithmetic mean, while the Pearson’s Product Moments Correlation analysis at 0.05 level of significance was used to test the hypotheses. Findings from the study reveals that local and small scale banking businesses such as POS and Akawo play a significant role to the economic development of Omoku community. Based on the findings, it was concluded that the available of POS and Akawo businesses is significant to the economic growth of Omoku community especially as it touches the nukes and crannies of the community and enabling individuals and small business organization to easy gain access to financial resources without spending much time. The study recommends among others that the government through the central bank of Nigeria should create an enabling environment for these businesses to strive by reducing the charges place on the both the owners …