The Effect Of Naira Redesigning On the Entire Economy Of Nigeria
Introduction
The redesigning of the Nigeria currency has already prompted a lot to be in place as much as good and bad for my country Nigeria, meanwhile early this 2023 this year, there was national less cash in circulation which has already prompted a lot of thing to be in place due to naira redesigning with it policy attachment. Meanwhile this redesigning has prompted a lot of negative effects that has hitted businesses badly, thereby disrupting the progress in the economy activities, meanwhile some source has it that the less in supply of the national currency that Nigerian experienced then before recovery from that was due to the cost in printing new naira note.***
Despite the negative effect it has caused, in some ways it has subjected Nigerian to adapt the use of the modelize means of banking through mobile banking, most especially within the retailers and consumers, although the trading scale within the small scale manufacturer was actually affected and hitted badly due to this promptu implementation of this policy across Nigerians. Some other good things pending to this redesign show the need why Nigeria Government needs to attend to some of the surfaced loopholes from this implementation.
Back then in February, the central Bank of Nigeria (CBN) made a declaration that the old naira note still in circulation is not a legalized tender with a stipulated period over the Introduction of the new naira note, although this impromptu decision takes all Nigerians unwares that has caused more good than harm to the citizen as I think so, as much as banks shutting down due to a little cash in circulation. This redesigning policy revealed the economic vulnerability surrounding my country Nigerian and exposed the various loopholes that the Central Bank of Nigeria (CBN) has to address based on physical cash reliance.
• Based on some source has it that the Central Bank of Nigeria redesign the naira notes for numerous reason as much has one of the reasons is to fight again currency fraud that has to do with illegal financial activities in place to incorporate and enhance the security measures that is aim to introduce some security measure that determine the counterfeiting of the notes and as much as preventing a lot of people from engaging in any level of fraudulent activities that tries to jeopardize the entire financial sectors. Hence these security features are mainly to overcome the hoarding of money from being exchanged easily while the aim is to stabilize the currency value by reducing the extent of hoarding or that of illegal activities surrounding the naira worth while the illicit gain is curtailed.
• As matter of fact against insurgency in Nigeria is sometime quit alarm that the means was actually device to drive away any form of money laundering in order to improve the security level that has to do with exchange of illegal activities that has to do with Kidnapping with ransom, which actually make it quite difficult for criminals to achieve their aim illegally.
• Another thought of this action of Central Bank of Nigeria over the currency is to combat against inflation, in order to safeguard the security measures surrounding the economy that makes it difficult to replicate the notes thereby giving more instilling confident over the authenticity of currency, of which the aim of the central financial institution recognised as Central Bank of Nigeria (CBN) is to curb inflationary actions and stabilize the economy while introducing policy that enforce a strategy that reinforce terms and conditions that is main to stabilize and build the entire economy.
• Another reason for redesigning the Nigeria note is that the Central Bank of Nigeria wanted to used medium to gain back full control over the amount of money in circulation while in and out flow of this Nigeria Currency is controlled, hence with the readjustment to suit to the plan that the Government implemented over the economy while they regulate the entire financial sector. Still, we Nigerians are still anticipating for some of this feature to manifest as Nigeria grumbles in inflation today.
The implementation over the redesigning of Nigeria currency and it policy which are all aimed to bring forth development has turn out to cause suffering among Nigerians because of mismanagement of this policy towards the citizens, to the extentent that some institution that are main be operation are being jeopardized as Nigeria went on to loss between N10-15 trillion of national productivity Accord to director-general of the National Bureau of Statistics (NBS) as estimate ***
Well, today with the develop situation surrounding Nigeria entails that benefit of the redesigning of the naira note is not seen or achieved at this point of writing this post, also there is also failure in means of payment since the the new naira note are not actually made available in circulation while they failed to improvise another means of payment while implementing this policy which has made it so difficult for people to trade most especially in the rural area of Nigeria then before reversing the old naira note as legalized tender today, that has already easy up things.
Today the cost of commodity across all the geographical area of Nigeria has increase in price due to the inflation that has arise to stay in Nigeria today why the currency is depreciating day after day over value of Dollar as CBN has it today, base on dollar exchange rate to Naira 899.893, The imbalance between the dollar has triggered almost all services within Nigeria to attest hike in price of their services, good and offer rendered.
The negatives impact of this misused and mismanagement of the naira redesigning policy ordered from supreme Court in Nigeria has caused a lot of business to fold up while a lot of Investors has decline in proofing there worth within Nigeria tends to have boost the economy, hence this has already caused less investment coming into the country Nigeria.
I think the effect of naira redesigning on the entire economy of my country Nigeria and it policy has a great negative effect that has subject a lot of Nigeria to some certain conditions that has prompted readjustment in personal life, business and many other despite the mission of implementing and redesigning is to improve the economy while the fraudulent activities are eliminated. But the reverse is the case today that leads to a huge deficit cost in the economy while the price of commodities attest to the next figure day after day. I suggest that some measure should be amended that will suit the citizens of Nigeria.
References
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