NIGERIA CURRENCY REDESIGN AND ITS ANTICIPATED EFFECTS ON THE NATION’S SMALL BUSINESS DEVELOPMENT

Abstract

Nigeria is one country that embarked on strategies to improve its financial policies and in the run, anticipated to grow the economy of the Nation. One of these policies was the recent 2022 redesign of the Nation’s currency in (₦200, ₦500, ₦1000 notes), launched on Wednesday, November 22, 2022. However, the small businesses in Nigeria viewed this policy with much mixed feelings, Reviewed literature was carried out. Small businesses developmental positions much more depended on the form of money in circulation, its acceptability, availability and how it was managed by the monetary authorities. The study adopted the descriptive survey design with a population of 2,850,900, adopted Yamane formula to arrive at a sample size of 400. Simple random sampling method was used for the selection of respondents with a distribution of 740 copies of questionnaire, self-administered and 620 responded and retrieved from small businesses. The source of data was primary. A five-point Likert-scale nature of questionnaire was adopted, validated by four distinguished lecturers. The method of data analysis was by linear regression. Findings showed that small businesses developmental planning would negatively be affected for they were not consulted for ideas at the initial point of conception of the process of currency redesign, during the redesign process and final launched of the currency hence small businesses were at serious risk of losing their developments’ planning initiative results. Also, small businesses would seriously lose their customers base astronomically having serious money exchange challenge with their individual and collective customers because of the very short period given by the Central Bank of Nigeria (CBN) for the fading out of the old currency designed to the new currency redesigned. In conclusion, it must be said that the Central Bank of Nigeria could have a better intention on the redesign of the currency. More so, the approach to its public engagements and public notifications were graced with mixed feelings. Recommended are that the Central Bank of Nigeria should quickly consult small businesses in all the processes on the redesign of the currency to help these small businesses in their developmental planning. Also, the Central Bank of Nigeria should give longer period for the fading out of the old currency designed to the new currency redesigned so that small businesses would not seriously lose their customers’ base astronomically.