A comparative study of the gains and pains of the Naira redesign policy in Nigeria: Implications for future policy

Abstract

The recent Naira redesign policy of the Federal Government of Nigeria in the wake of the 2023 general elections brought untold hardship to Nigerians despite its good intentions. This study explores the gains and pains of the Naira redesign policy and the implications of the scarcity of the new Naira notes on Nigerians. Twenty-four participants were selected for the study using multistage sampling techniques. Data were collected using in-depth interviews and analysed thematically using NVivo 12. Findings revealed that the policy, amongst other things, enthroned a cashless and digital banking system, enriched some individuals, and reduced kidnapping and terrorism within the period of Naira scarcity. The study equally found that the policy exposed Nigerians to starvation and untimely death, negatively affected some businesses, and led to the destruction of some bank properties. The study recommended, amongst others, that the Central Bank of Nigeria should print more new Naira notes, increase the daily withdrawal limit, and provide palliatives to help cushion the effects of the policy on average Nigerians.