Cashless policy and Naira redesign of the Central Bank of Nigeria (CBN): a review

Abstract

Compared to other nations of the world particularly developed countries, the Nigerian economy is dominated by the use of cash in carrying out transactions. This necessitated the formulation and implementation of cashless policy in 2012 and naira redesign in 2023 to conform to global best practices in currency management since the introduction of cashless systems where transactions are carried out without the use of cash is gaining global attention. This study was conducted to review some of the pros and cons of the cashless policy and naira redesign by the Central Bank of Nigeria. The empirical information gathered are from research works by some analysts across the country, press briefings by the Apex Bank, Government Ministries, Agencies and Departments (MDAs), Presidency, newspaper reviews, etc. Findings from the study showed that the policy was well conceived considering the various opportunities that come with it. Notably, the fact that it reduced the number of unbanked population to an extent, increased employment generation through the influx of mobile banking operators and Point of Sale (POS) agents. However, it was generally opined that the policy implementation timeline was ill-advised. Due to the attendant consequences of the policy which made life somewhat unbearable for most citizens during the period, it was recommended that there be synergy between the three tiers of government (Executive, Legislature and Judiciary) while prioritizing stakeholders’ engagement and public awareness.