Table of Contents
CHAPTER ONE.. 5
INTRODUCTION.. 5
1.1 Background to the Study.. 5
1.2 Statement of the Problem... 6
1.3 Objectives of the Study.. 7
1.4 Research Questions. 8
1.5 Research Hypothesis. 9
1.6 Significance of the Study.. 9
1.7 Scope of the Study.. 10
1.8 Limitations of the Study.. 10
1.9 Organization of the Study.. 10
CHAPTER TWO.. 12
REVIEW OF RELATED LITERATURE.. 12
2.1 Introduction.. 12
2.2 Theoretical Review.. 12
2.3 Conceptual Review.. 14
2.4 Empirical Review.. 17
2.5 Summary of Literature Review.. 19
CHAPTER THREE.. 21
RESEARCH METHODOLOGY.. 21
3.1 RESEARCH DESIGN.. 21
3.2 POPULATION OF THE STUDY.. 21
3.3 AREA OF THE STUDY.. 21
3.5 DATA COLLECTION METHODS.. 22
3.6 SAMPLING TECHNIQUES.. 22
3.7 DATA ANALYSIS.. 22
3.8 ETHICAL CONSIDERATIONS.. 23
3.9 LIMITATIONS.. 23
3.10 ETHICAL CONSIDERATIONS.. 23
3.11 VALIDITY AND RELIABILITY.. 23
3.12 CONCLUSION.. 24
CHAPTER FOUR.. 25
DATA ANALYSIS AND INTERPRETATION.. 25
4.1 Preamble.. 25
4.2 Socio-Demographic Characteristics of Respondents. 25
TABLES BASED ON RESEARCH QUESTIONS.. 28
4.3 Analysis of the Respondents’ Views on Research Question one:. 28
4.4 Testing Hypothesis. 34
4.5 Discussion of Findings. 36
CHAPTER FIVE.. 38
SUMMARY CONCLUSION AND RECOMMENDATIONS.. 38
5.1 Summary of Findings. 38
5.2 CONCLUSION.. 38
5.3 RECOMMENDATION.. 39
REFERENCES.. 40
APPENDIX.. 42
Research Questionnaire: The Effect of the New Naira Design on Inflation and Gross Domestic Product. 42
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The redesign of a nation's currency is a significant event that goes beyond the aesthetics of banknotes. It can have far-reaching consequences on economic indicators, such as inflation and gross domestic product (GDP). In the case of Nigeria, the recent unveiling of the new Naira design has sparked discussions about its potential impact on the country's economic landscape. This introduction aims to delve into the multifaceted effects of the new Naira design on inflation and GDP, exploring both the immediate and long-term implications. Smith, J. (2018).
One key aspect to consider is the psychological impact on consumer behavior. A new currency design may influence consumer confidence and spending patterns, which in turn can have implications for inflation. Changes in consumer behavior, driven by perceptions of the new Naira design, can create fluctuations in demand for goods and services, influencing overall price levels. Understanding the psychological dynamics of such a shift is crucial for evaluating its potential impact on inflation. International Monetary Fund. (2019).
Additionally, the redesign of the Naira may have broader implications for the Nigerian economy, affecting its international image and trade relations. The aesthetic appeal and security features of the new currency may enhance trust in the Naira, potentially attracting foreign investors and strengthening the country's economic position. Conversely, any negative perceptions or challenges associated with the redesign could have adverse effects on the economy. This interplay between currency design, international perception, and economic performance adds a layer of complexity to the analysis. Central Bank of Nigeria. (2023).
To gain a comprehensive understanding of the effects of the new Naira design, it is essential to examine historical precedents and case studies of currency redesigns in other countries. Comparing the outcomes of such initiatives provides valuable insights into potential challenges and benefits. Additionally, economic theories and models that explain the relationship between currency design, inflation, and GDP can serve as analytical tools in assessing the impact of the new Naira design on Nigeria's economic landscape. Rodriguez, M. (2020).
1.2 Statement of the Problem
The introduction of a new currency design in Nigeria, specifically the redesigned Naira, presents a complex economic challenge that warrants thorough investigation. The primary problem at hand is the uncertainty surrounding the potential impact of the new Naira design on key macroeconomic indicators, particularly inflation and gross domestic product (GDP). The redesign has the potential to influence consumer behavior, either bolstering confidence and spending or inducing hesitancy, consequently affecting the overall demand for goods and services. This uncertainty extends to the international front, as the reception of the new currency design by foreign investors and trading partners remains an open question, with possible repercussions on Nigeria's economic standing and trade relations. The problem statement thus revolves around the need to comprehensively assess the multifaceted consequences of the Naira redesign, addressing the intricate interplay between psychological, domestic economic, and international factors that may contribute to fluctuations in inflation and GDP. Smith, J. (2018).
Furthermore, there is a dearth of empirical evidence and research on the specific dynamics of currency redesigns in the Nigerian context. Limited studies have been conducted to explore the historical patterns of currency changes and their subsequent effects on inflation and GDP in the country. Understanding these historical precedents is crucial for developing informed policy responses and mitigating potential risks associated with the introduction of the new Naira design. Therefore, the problem statement emphasizes the necessity of an in-depth empirical analysis to fill this gap in the existing literature and provide policymakers with valuable insights into the likely economic consequences of the currency redesign. . International Monetary Fund. (2019).
1.3 Objectives of the Study
The main objective of the study is to examine The Effect of The New Naira Design on Inflation and Gross Domestic Product. Specific objectives of the study are:
- 1. To assess the short-term (3-6 months) impact of the new naira design on inflation rate in Nigeria, considering both direct and indirect effects.
- 2. To analyze the impact of the new naira design on the informal sector of the Nigerian economy, specifically focusing on changes in economic activity and access to liquidity.
- To evaluate the potential long-term (1-2 years) effects of the new naira design on Gross Domestic Product (GDP) growth, incorporating both positive and negative economic consequences.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- 1. What are the short-term (3-6 months) impact of the new naira design on inflation rate in Nigeria, considering both direct and indirect effects?
- 2. What is the impact of the new naira design on the informal sector of the Nigerian economy, specifically focusing on changes in economic activity and access to liquidity?
- What are the potential long-term (1-2 years) effects of the new naira design on Gross Domestic Product (GDP) growth, incorporating both positive and negative economic consequences?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between New Naira Design on Inflation and Gross Domestic Product.
1.6 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.
1.7 Scope of the Study
The study is delimited to CBN, Lagos. 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.
1.8 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.
1.9 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.
