Effect of Lower Currency Denomination on Business to Consumers in Era of Cashless Society: A Study of Maiduguri Metropolis Nigeria

Abstract

E-commerce transactions and cashless payments is a common denominator in financial transactions in Maiduguri Metropolis by business to commerce (B2C). The study investigated the effect of lower denomination currency (LCD) on B2C in the era of cashless society. The Metropolis is structured into four clusters of B2C. The study is on the effects of financial accessibility, financial innovation, maximum sales revenue and cash handling culture of B2C. Using four-likert scale and multiple linear regression the results showed that the financial accessibility revealed a high cost of handling cash book and that network issue affects the volume of business while financial innovation reduces the need for LCD and cost of holding cash. The results further showed that maximum sales revenue is a trade-off between liquidity and profitability; either way, it is a high liquidity or otherwise. On the effect of cash handling culture, the result showed that B2C does not require large amount of cash to operate and it does not require a professional to handle its cash reconciliation. The study recommended for improvement of financial accessibility, innovation and inclusion on B2C. The paper called on the CBN to be cautious in its call to B2C traders to key-in onto e-Naira in order not to destroy B2C retailers.