IMPACT OF NAIRA REDESIGN IN CURBING BANDITRY IN NIGERIA
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IMPACT OF NAIRA REDESIGN IN CURBING BANDITRY IN NIGERIA
Abstract
The purpose of this study was to analyse the public’s impression of the influence of the Naira redesign on banditry in Nigeria. A four-point Likert-scale questionnaire was used to collect information from a sample of 100 people.
According to the findings, a sizable number of participants agreed that the redesign of the Naira notes had a good influence on reducing the occurrence of banditry in Nigeria.
However, a sizable proportion of interviewees stated that they were unsure about the redesign’s influence on banditry. The findings emphasise the necessity of a multifaceted approach to lowering the prevalence of banditry, including the redesign of Naira notes and other public-safety measures.
It is suggested that additional research be performed to gain a more full knowledge of the issue, as well as measures be made to improve public education and awareness of the security aspects of the new Naira notes. Regular public perception assessments are also advised in order to acquire reliable information on the influence of the Naira redesign on banditry in Nigeria.
CHAPITRE ONE
INTRODUCTION
1.1 Background of The Study
Currency changes were viewed as the cornerstone for further strengthening the macroeconomic framework, particularly monetary transmission; the greater the population’s reliance on local currency rather than US dollars, the greater the government’s influence over macroeconomic policy.
Over the years, Nigeria has seen the introduction and redesign of its currencies in circulation, with the CBN playing crucial roles in ensuring its stability (Naseem, 2012). The operations and performance of this sector have a direct impact on attaining macroeconomic goals while also enhancing the economy. For example, the Central Bank of Nigeria (CBN 2022) just made a statement stating that it has completed plans to redesign the Naira.
Money hoarding, inflation, and counterfeiting were mentioned as important factors for the CBN Governor’s unorthodox decision. According to the CBN, approximately N2.73 trillion of the N3.23 trillion in circulation in Nigeria is outside bank vaults.
his accounts for around 85% of all money in circulation (CBN, 2022). Furthermore, the Naira is not as secure as it should be since the N500 and N1000 denominations are easier to counterfeit.
This policy has sparked heated controversy among economists, attorneys, and other policy professionals. Many of them believe that these policy changes provide no meaningful economic advantages to the people and are merely a distraction in the midst of serious economic problems (Akin, 2023).
According to the CBN’s most recent report, 2020 Currency Report, 67,265 pieces of counterfeit notes with a nominal value of N56.83 million were confiscated in 2020, representing a 20.80% decrease in volume and a 12.18% decrease in value when compared to 84,934 pieces valued at N64.71 million in 2019.
The global guideline for the number of fakes per million is 100. In 2020, the counterfeit note-to-banknote volume ratio was 13 pieces per million, compared to 20 pieces per million banknotes in 2019. This demonstrates that the issue of currency counterfeiting is not widespread enough to require a currency redesign (IMF, 2022).
Recently, several countries have been debating the relative merits of “Dollarization,” that is, adopting the currency of an anchor country. One of the main potential costs of dollarization is the loss of monetary policy autonomy, the optimal currency areas, literature emphasises that the costs of dollarization are inversely proportional to the correlation between increases in productivity,
wealth, and capital accumulation. Thus, the home country suffers from dollarization to the extent that it is subject to idiosyncratic shocks. To assess the extent of these stabilisation costs, numerous literatures on currency reforms and their impact on national monetary policy were reviewed.
According to Emefiele, the CBN’s currency management has faced a lot of issues for some time. This involves significant public hoarding of banknotes, with statistics indicating that more than 80% of currency in circulation is outside the vaults of deposit money banks (Okolie, 2021).
At the end of September 2022, accessible figures from the CBN show that N2.73 trillion of the N3.23 trillion in circulation was outside the vaults of deposit money banks across the country, and allegedly owned by the people. This indicates that Nigerians have not entirely accepted the Central Bank’s cashless strategy (Yinnusa, 2022).
Due to underreporting and a lack of trustworthy statistics, determining the rate of banditry in Nigeria is challenging. However, it is widely acknowledged as a growing concern in the country, particularly in rural areas where security forces are frequently in short supply (Victor, 2022).
Bandits have been known to target highway travellers, attack rural communities, and plunder homes and businesses. The Nigerian government has taken attempts to address the issue, such as sending additional security forces and establishing special units, yet banditry remains prevalent in many parts of the country (Victor, 2022).
The proposed goal of the naira redesign is to reduce the country’s rising rate of banditry. Scholars and individuals in the country have suggested a number of ideas. Some Nigerians believe that the naira redesign programme will reduce banditry,
while others believe that it will not lessen banditry but will have a negative influence on the country. With this context in mind, this study will investigate the impact of naira redesign on banditry in Nigeria.
1.2 Statement of the Problem
Banditry has become a significant security concern in Nigeria in recent years, resulting in the loss of lives and property. Despite government efforts to combat this threat, it remains. The Naira Redesign project intends to strengthen the currency’s security characteristics in order to decrease counterfeiting and other financial crimes.
The study intends to investigate the influence of the Naira Redesign on banditry in Nigeria and to assess its effectiveness as a solution to this problem. Every type of cash is much more than its monetary value and the items it can purchase. Each piece is a depiction of the country from which it comes, displaying the legacy that makes its people proud to be called its own.
Currencies also reveal how diverse each country’s culture is. With famous figures depicted on its face, it offers people an idea of what the country has been through and who has performed the most important roles in its survival to this day. As a result of various modifications, some countries’ currencies have been redesigned.
This could be the product of new governments, policies, or ideas and beliefs. Whatever causes the change, all of this can only indicate one thing: revamping an entire set of currencies also entails a change in an entire nation. As a result, the difficulty for this study is determining the impact of naira redesign on banditry in Nigeria.
1.3 Goals of Research
The study’s main goal is to investigate the impact of naira redesign on banditry in Nigeria. The precise goals are as follows:
To assess the impact of the Naira Redesign in reducing banditry in Nigeria.
To assess the level of public trust in the currency’s security following the makeover.
To analyse the public’s impression of the influence of the naira redesign on banditry.
1.4 Research Questions
How effective has the Naira Redesign been in reducing the prevalence of banditry in Nigeria?
What is the level of public trust in the currency’s security following the redesign?
What is the public’s assessment of the naira’s redesign’s impact on banditry?
1.5 Significance of the Research
The study “Impact of Naira Redesign in Curbing Banditry in Nigeria” will present some benefits upon completion. Among the many advantages are:
The study would provide practical insights and recommendations on how money redesign might be utilised effectively as a tool to curb banditry in Nigeria.
The study’s findings could be used by the government and other relevant authorities to create a money that is less vulnerable to counterfeiting and criminal activity, thereby boosting public safety.
The research would add to the corpus of knowledge in the subject of money redesign and its impact on crime reduction.
The study could spark additional research into the subject, leading to a better understanding of the problem and more effective solutions.
The study’s findings could inform and influence policymaking by providing relevant authorities with practical and evidence-based information to help them make decisions.
Overall, completing the study “Impact of Naira Redesign in Curbing Banditry in Nigeria” would provide a comprehensive understanding of the issue and practical solutions to improve public safety, add to the existing body of knowledge, and inform policy-making.
1.6 Scope of The Study
The study will look at how the new redesign of the Naira currency has affected the rate of banditry in Nigeria. It will investigate the connection between currency redesign and criminal activity, specifically banditry.
The study will concentrate on the period following the redesign of the Naira currency and its impact on Nigeria’s banditry rate. The precise time frame will be determined by the availability of pertinent data.
1.7 operational Definition of Terms
The term “Naira redesign” refers to the process of redesigning the design of Nigeria’s currency, the Naira. This redesign includes changes to the currency’s physical appearance, such as colour, size, and security features,
as well as changes to its denomination. A currency redesign is typically done to improve security, prevent counterfeiting, and ensure that the currency remains current and easily identifiable.
Banditry: Acts of robbery or theft committed by armed robbers or bandits are referred to as banditry. Banditry is the use of violence or the threat of violence to steal property or money from individuals or groups. This type of criminal activity is frequently carried out in rural or remote areas where law enforcement is scarce.
Crime reduction: The reduction of the number or frequency of criminal acts in a specific geographical area or population. The goal of crime prevention initiatives is to make communities safer and to lessen the negative effects of crime on individuals, families, and businesses.
Public safety refers to the measures taken to ensure the safety and well-being of individuals, communities, and society as a whole. Public safety encompasses a wide range of initiatives and practices designed to prevent harm, reduce risk, and protect people from harm.
Policy making: Policy making refers to the process by which decisions are made and rules are established that guide the actions of individuals, organizations, or governments. Policy making involves the formulation, implementation, and evaluation of policies that address specific problems or issues.
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