NAIRA REDESIGN – IMPLICATIONS ON NIGERIA ECONOMY
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
NAIRA REDESIGN – IMPLICATIONS ON NIGERIA ECONOMY
Chapter One
Introduction
Since the COVID-19 epidemic damaged the global economy, particularly Nigeria’s economic growth, monetary authorities have used a variety of techniques, including the redesign of the Naira, to lower inflation and stabilise the economy (Muhammed and Abdulmajeed, n.d).
As the country’s highest federal government bank, the central bank of Nigeria is responsible for monitoring inflation and combatting naira note counterfeiting. Only the Nigerian Central Bank has the authority to print and redesign the Naira in order to eliminate corrupt money from the system
manage the amount of cash in circulation to reduce inflation, maintain a strong security system by preventing voting fraud and kidnapping, and ensure a successful cashless economy that reduces the misuse of Naira notes and causes the Naira to appreciate over time (Olujobi, 2022).
The head of Nigeria’s central bank recently announced that the naira would be rebuilt with the goal of removing black market funds from the system, reducing crime, and lowering inflation (Analytical, 2022).
However, the redesign of the Naira is not unprecedented. Other countries, such as the United States and the United Kingdom, have altered the design of their currencies. The N5, N10, N20, and N50 notes were redesigned in 2007, while the N1000 was released in 2005.
However, with the approval of the federal government, the N200, N500, and N1000 notes will be redesigned in 2022 (Analytical, 2022). Although the public’s opinions on the timing of the Naira redesign have varied in light of the unusually high Naira to dollar exchange rate caused by the balance of payments deficit, market fluctuations, and high inflation, which in turn caused a steady rise in unemployment as many businesses struggle to survive (Orie and Orie, 2020).
The Nigerian central bank is in charge of overseeing monetary policy, which includes the redesign of the Naira, in order to control inflation, money hoarding, and counterfeiting.
This study will significantly contribute to the advancement of knowledge in a brand-new field of study by analysing the effects of the Naira redesign, a component of monetary policy in Nigeria’s economy.
The redesign of the naira is a sound monetary policy that is supported by key measures such as the interest rate and exchange rate, however GDP will serve as a proxy for Nigeria’s economic growth.
As a result, the primary goal of this research is to evaluate the influence of monetary policy and the redesign of the Naira on Nigeria’s economic growth.
There are both real and perceived implications to the new Naira note redesign strategy. The perceived impacts are determined by the perceived value, the legitimacy of the currency, and the ease with which the notes may be handled and identified.
In terms of its practical implications, the policy may have a greater impact on public perception, security measures, and effective public awareness initiatives. (Olujobi, 2022).
Overall, the policy has both positive and negative implications for society and the national economy, which reinforce one other. It would also strengthen the currency’s reputation as a symbol of confidence, stability, and prosperity. The positive impacts include:
Greater Security: The new Nigerian Naira notes include the newest security features, such as holograms and watermarks, which make it more difficult for counterfeiters to fabricate phoney money. As a result, there is more trust in the currency, and fraud and corruption are less prevalent.
Better Aesthetics: The new Nigerian Naira note design incorporates eye-catching colours and images of prominent figures from the country’s history. This has improved the currency’s entire appearance and feel, increasing consumer interest in it.
Greater Understanding: The redesign of the Nigerian Naira notes has increased people’s knowledge of the importance of money and its role in the economy. Numerous illustrations on the new notes depict notable figures from Nigeria’s past, raising awareness of the country’s history and cultural heritage.
Economic Growth: The redesign of the Nigerian Naira note has contributed to economic growth by increasing consumer confidence in the currency, reducing the incidence of fraud and corruption, and improving the money’s general appearance and feel. This has helped to enhance economic growth and activity.
Need help with a related project topic or New topic? Send Us Your Topic