EFFECT OF CASH CRUNCH ON THE PUBLIC TRANSPORT SERVICES IN LAGOS STATE, NIGERIA

Abstract

This study examined the impact of the cash crunch on public bus transport services in Lagos, Nigeria. The objectives examined the effect of naira design on customer satisfaction with public transport services and also examined how the cash crunch affects public transport services in Lagos State. The study relied on a survey research design and the use of primary data, which were derived from a questionnaire instrument administered at the study location. Further, a combination of clustered, stratified, and simple random sampling techniques were used while respondents (ticketing officers and drivers) were selected for the questionnaire administration. The statistical regression technique from the SPSS software was used for data relationship analysis, while descriptive tools were utilised for the presentation of the results. The study found that with a mean criterion or decision rule (reject if the mean is < 3.00), hoarding of cash by the financial institutions in the country was the major cause of the cash crunch experienced, with a mean value of 4.93, while insecurity, accounting for a mean value of 1.61, was ranked the lowest. In addition, with respect to the effect on public transport bus service operations, cash inaccessibility was ranked highest with a mean value of 5.00, while labour shortage was ranked lowest with a mean value of 2.13. It was concluded that cash influences the public bus transport sector as business transactions become constricted and stiffened. Thus, resulting in a slowdown in operations and activities, a greater percentage of the respondents were not satisfied with the government's motives for the Naira redesign. It was recommended that the timing of policy should be adequately considered. Naira redesign policy should not be positioned at periods (the end of the year, the festive season, and the peak of the election season) that come with high spending and the increased use of cash. The demand for cash is stronger than usual during these periods.   Keywords: Cash crunch, Naira redesign, public transport services, operations, activities