CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The evolution of currency design serves as a pivotal instrument in shaping economic policies and behaviors within a nation. Nigeria, a country with a burgeoning economy and a rapidly advancing financial sector, has embarked on a transformative journey to modernize its monetary landscape. One significant facet of this initiative is the redesign of the national currency, the Naira, as a strategic tool to foster the adoption of cashless policies across the nation. The redesign of the Naira not only encompasses aesthetic alterations but also integrates security features and functional enhancements aimed at promoting digital transactions and reducing reliance on physical cash. Adepoju, A., & Adelaja, A. O. (2019).
The cashless policy framework in Nigeria aims to mitigate the risks associated with cash-based transactions, such as theft, counterfeiting, and money laundering, while simultaneously fostering financial inclusion and efficiency. By analyzing the redesign of the Naira within the context of this policy framework, it becomes evident that currency aesthetics, security features, and technological advancements play a crucial role in influencing consumer behavior and financial decision-making. Moreover, understanding the impact of currency redesign on cashless adoption provides valuable insights for policymakers, financial institutions, and stakeholders involved in Nigeria's economic development. Central Bank of Nigeria. (2021).
This study seeks to delve into the multifaceted aspects of the Naira redesign as a tool for implementing cashless policies in Nigeria. Through a comprehensive analysis of existing literature, empirical data, and case studies, it aims to elucidate the effectiveness of currency redesign in promoting digital transactions and achieving the objectives outlined in Nigeria's cashless policy agenda. Furthermore, this research endeavors to identify potential challenges, opportunities, and recommendations for optimizing the synergy between currency design and cashless initiatives to foster sustainable economic growth and financial stability in Nigeria. Iyaniwura, S. A., & Olokoyo, F. O. (2019).Top of Form
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1.2 Statement of the Problem
The redesign of the Naira currency in Nigeria serves as a potential tool in the implementation of the country's cashless policy. However, the effectiveness of this strategy hinges on various factors, including public acceptance, technological infrastructure, and policy enforcement. One of the key challenges lies in ensuring that the redesigned currency fosters trust and confidence among citizens, businesses, and financial institutions. Additionally, the success of the cashless policy depends on the accessibility and reliability of digital payment systems across urban and rural areas, as well as addressing concerns related to cybersecurity and financial inclusivity. Therefore, a comprehensive analysis of the Naira redesign's impact on promoting cashless transactions is imperative for policymakers to navigate the complexities of transitioning towards a more digital economy in Nigeria. Adepoju, A., & Adelaja, A. O. (2019).
Furthermore, the analysis should delve into the socioeconomic implications of the cashless policy, particularly its effects on marginalized communities and informal sectors heavily reliant on cash transactions. Issues such as affordability, education, and access to banking services must be addressed to ensure that the transition to digital payments does not exacerbate existing inequalities. Moreover, the effectiveness of the Naira redesign as a tool for promoting cashless transactions necessitates ongoing evaluation and adjustments to policy frameworks to address emerging challenges and optimize benefits for all stakeholders. Ultimately, understanding the dynamics of the Naira redesign within the context of Nigeria's cashless policy is crucial for fostering sustainable economic growth and financial stability in the country. . Central Bank of Nigeria. (2021).Top of Form
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1.3 Objectives of the Study
The main objective of the study is to examine Analysis of Naira Redesign as a Tool for Cashless Policy in Nigeria. Specific objectives of the study are:
- 1. To evaluate the effectiveness of the Naira redesign policy in driving cashless transactions in Nigeria.
- 2. To identify the challenges faced by different demographic groups in transitioning to a cashless system due to the Naira redesign.
- To analyze the long-term sustainability of the Naira redesign policy as a tool for the cashless policy, considering factors like access to digital infrastructure and financial literacy.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- What is the correlation between the Naira redesign policy and the use of digital payment methods in Nigeria compared to the period before the redesign?
- How do demographic factors such as location, income level, and age influence the challenges individuals face in adopting cashless transactions due to the Naira redesign?
- To what extent can the Naira redesign policy, alongside other initiatives, contribute to a long-term cashless economy in Nigeria, considering factors like digital infrastructure access and financial literacy programs?
1.5 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Economics sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.6 Scope of the Study
The study is delimited to Maiduguri Urban. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.7 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.8 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
REFERENCES
Adepoju, A., & Adelaja, A. O. (2019). Impact of Cashless Policy on the Nigerian Economy. International Journal of Economics, Commerce and Management, 7(8), 256-269.
Central Bank of Nigeria. (2021). Cashless Policy: Overview and ImplementationGuidelines.Retrievedfrom https://www.cbn.gov.ng/cashless/cashlesspolicy.asp
Iyaniwura, S. A., & Olokoyo, F. O. (2019). Digital Financial Services and Cashless Policy in Nigeria. Journal of Accounting, Finance and Auditing Studies, 5(3), 74-88.
