ABSTRACT
The study examined the Coping strategies to naira redesign shock amongst rural household in Sapele Local Government Area, Delta State, Nigeria. Specifically this study described the socio-economic characteristics of the rural households, assessed their perception to the naira redesign, identified the coping strategies employed by rural households in response to the naira redesign and also identified the challenges they faced during the naira scarcity.
A two-stage sampling procedure was employed to select 75 rural households in the study area. Primary data were obtained through the use of questionnaires and interview schedule. Data obtained was analyzed using descriptive and inferential statistics such as multiple regression.
Findings revealed that the mean age and mean household size of the respondents was approximately 36 years and 5 persons. More than half (56.06%) of the households were female-headed households. Majority (90.7%) of the respondents' ware Christians and 44.0% of the respondents had secondary education. Trading (46.7%) was their major livelihood. The average farming experience and farm size were 10.2 years and 0.3 hectares respectively. More than half 57.3% of the respondents do not belong to any cooperative or a social group. Rural households had an unfavourable (98.7%) perception of the naira redesign. Reduction in income (x̄ =1.73), feeding difficulty (x̄ =1.71), and difficulty in personal movement (x̄ =1.69) were the major challenges faced. In addition, reduction in spending habits (x̄ =3.49), increased interest in accepting digital forms of payment (x̄ =2.99) and the use of POS machine (x̄ =2.72) were the major coping strategies employed. Result from multiple regression shows the sex (ß=4.547, p=0.008), marital status (ß=-4.45, p=0.028) and challenges of naira redesign (ß=0.475, p=0.002) had a significant contribution to the coping strategies employed by the rural households. The study concluded that households not just businesses were significantly affected by the naira redesign policy and government should launch extensive awareness campaigns to educate the rural households about the naira redesign process, its objectives, and the expected impact on cash availability.
