Social Implications of the Cashless Policy on Market Traders in Abia State

Nigeria's cashless payment policy, implemented through Central Bank of Nigeria directives and most recently stressed during the 2023 naira redesign exercise, has generated significant social disruption for market traders in the informal economy whose transactions rely predominantly on physical currency. This study examines the social implications of the cashless policy for market traders in Aba and Umuahia, Abia State, South East Nigeria. A cross-sectional survey design was employed, with structured questionnaires administered to 380 traders across Ariaria International Market, Eke Awka Market, and Umuahia Main Market. Ten key informant interviews with market association leaders and commercial bank representatives supplemented the survey. Results reveal that 81% of respondents experienced significant business disruption during periods of cash scarcity attributable to the cashless policy. Female traders were disproportionately affected due to lower rates of smartphone ownership and bank account access compared to male counterparts. Point-of-sale adoption was highest among traders in electronic goods and clothing and lowest among food item traders whose customers were predominantly rural migrants without digital payment capacity. Social tensions, including market riots and trader protests, were documented in Ariaria Market during the peak cashless enforcement period. Financial exclusion among rural buyers reduced trade volumes in market segments dependent on periodic rural market days. The study recommends phased digital transition timelines sensitive to informal economy readiness, subsidized POS deployment in traditional markets, and digital literacy programs for female traders in South East Nigerian markets. Keywords: cashless policy, market traders, Abia State, digital exclusion, informal economy.