The Effect of Naira Redesign Policy on profitability: The Sectorial Consequences of Consumers, Producers and the Government.

Abstract

The purpose of the currency redesign is to mop up the huge amount of cash that is outside the banking system. In view of this, the study underlines the Effect of Naira Redesign Policy on profitability: The Sectorial Consequences of Consumers, Producers and the Government. Drawing on descriptive research design based on reviewed literature on currency redesign and sectorial implications in Nigeria. However, it was discovered form the plethora of literature that: CBN's 2022 Naira redesign programme had disastrous impacts on Nigerians, especially small and medium-sized company owners and rural residents who found it extremely difficult to conduct transactions due to the cash crunch. Also, many unscrupulous behavior emanates that became fatally intertwined with the operation of the scheme exacerbated the cash shortage by packing and giving the majority of the new notes to a select group of privileged Nigerians at the expense of others. It was recommended that The currency swap policy must be suspended immediately and only resumed when the equivalent of the money withdrawn from circulation has been printed and is available to replace the old currency notes. Keywords: Naira; Monetary Policy; Cash shortage; Currency in circulation