The naira redesign policy led by the Central Bank of Nigeria (CBN) has caused an increase in the adoption of cashless banking by customers.
The scarcity of cash in circulation has further accelerated this trend, which is being observed across various segments of the population, from ordinary citizens to high net worth individuals and companies.
There have been varying reactions to the ongoing naira redesign policy, which has led to the withdrawal of old currency notes and the introduction of new ones. CBN Governor Godwin Emefiele has stated that the policy has resulted in the removal of over N2 trillion from the economy. In his explanation, when currency is released into circulation, it is expected to be used and eventually returned to the CBN over time, thereby allowing the CBN to maintain firm control over the volume of currency in circulation.
Emefiele noted that: “Ordinarily, when CBN releases currency into circulation, it is meant to be used and after effluxion of time, it returns to the CBN, thereby keeping the volume of currency in circulation under the firm control of the CBN,’’.
