Effect of Naira Redesign on Small-Scale Industries Growth in Nigeria

The study examined the relationship between naira redesign, and it effect on small-scale enterprises growth in Isoko North and Ethiope East, Local government areas of Delta State, Nigeria. The study was designed as a cross sectional survey with an infinite population, and a sample size of 340 drawn from both small-scale businesses and informal traders randomly. The instrument for data collection was questionnaire, which were administered to the respondents and total of 338 were retrieved and used for analysis. The ANOVA statistical tool running on SPSS 24 were adopted in testing the hypotheses. The result from the analysis revealed that scarcity of new currency caused by the redesign of naira has moderate positive relationship on small-scale performance and scarcity of new naira has a high positive relationship on informal traders. Hence, it was concluded that redesign of naira, gave rise to scarcity of naira, which lead to informal traders buying naira from Point of Sales (POS) machines operators, and these led to folding up of many small-scale and informal traders’ enterprises. The study recommended among others that government in taking sensitive decisions such as naira redesign should involve relevant stakeholders.