According to the Central Bank of Nigeria (CBN), currency in circulation in the country increased by 157.27 percent to N2.53 trillion at the end of May. This marked a gain of N1.54 trillion within the period under review. The increase followed a dip of 235.03 percent to N982.09 billion at the end of February due to the naira redesign policy implemented by the CBN. During the period, N2.3 trillion was mopped up from circulation. The CBN employs an accounting/statistical approach to track currency movements in circulation.
Former CBN Governor Godwin Emefiele announced plans to redesign the old N200, N500, and N1,000 notes in October 2022, with deadlines for swapping the old notes. The redesign policy faced legal challenges, and the Supreme Court extended the legal tender status of the old notes until December 31. The CBN implemented the court order in March, instructing banks to comply. However, the redesign policy faced public outrage, protests, vandalism of bank facilities, and cash shortages, particularly affecting vulnerable populations, the unbanked, and rural dwellers.
The implementation of the naira redesign project by the CBN faced significant challenges and backlash. Public resentment was fueled by deteriorating economic conditions and ongoing petrol shortages, leading to violent protests and cash crunches. The most vulnerable members of the population were the hardest hit by the policy. The policy’s execution was criticized for being unprepared and poorly perceived, with the consequences negatively impacting the public.
