COPING STRATEGIES ADOPTED BY INFORMAL TRADER DURING NAIRA SCARCITY IN 2023

Abstract

The Naira redesign policy was preceded by the scarcity of Naira, the national legal tender. This disrupted social and economic activities and manifested into economic activities. Thus, this study investigated the coping strategies adopted by petty traders in the informal sector. The study adopted a descriptive research design and a non-probability sampling method in selecting Ifite school gate, Nkwo-Amaenyi and Eke-Awka purposively. A sample population of 385 derived using a sample calculator. Respondents were selected using simple random sampling technique. Data were derived through research structured questionnaire and analysed using simple percentage. Findings revealed that, the major challenges faced by traders in the informal sector are; poor sales, the lack of POS, lack of functional bank account, poor bank network and the lack of knowledge of internet banking. It was revealed that scam was not part of the challenge faced by these traders. The study also found out that, most petty traders in the informal sector used the bank account of family member or friends to transact their business as a mean of coping with the Naira scarcity while some others used POS and also, sold their goods to acquaintance and shop owners. Therefore, it was recommended that petty traders in the informal sector, have a functional bank account and that, banks improve their bank networks to aid bank transactions.