Lower Denomination Currency Notes and Customer Patronage of Small and Micro Business Products in Maiduguri, Borno State, Nigeria

Abstract

The use of lower denomination currency notes in Nigeria is observed to be a very important tool for common business transaction particularly to the traders, commercial vehicle owners and commuters. About 85% of the nation‟s daily transactions are estimated to be conducted in cash. The insufficiency of lower denominations of naira has posed great challenges on micro traders, commuters and transporters which may lead to loss of sales and differed services. This study examined the effect of lower denomination notes on customer patronage of Small and Micro Businesses (SMBs) product in Maiduguri Metropolis, Borno State, Nigeria. Simple random sampling technique was used to select 170 respondents from 300 Micro Enterprises in Maiduguri metropolis. Data were analyzed using descriptive and inferential statistics. Descriptive statistics was used to analyse the demographic data of the respondents and inferential statistics. Simple Linear Regression was used to test the hypotheses stated. The study revealed significant effect of lower denomination transaction on sales and customers‟ patronage of small business enterprises product in Maiduguri Metropolis [(???? 8.531; ???? 4.990, with (P< 0.05)]. The research recommended that small scale enterprises in Maiduguri metropolis should ensure that lower denomination currencies are available for their businesses.