The redesign of the Nigerian currency will greatly boost the nation’s cash flow and is a win in the war against counterfeit money. Currency fraud has grown to be a significant source of income for some, which has made counterfeiting quite challenging. According to CBN, Nigerians have formed factories and are merely printing bank notes because they do not use the banking system. The Nigerian Central Bank cannot identify counterfeit money. There is a problem if the regulatory body is unable to solve this, which is why rethinking is required. A secondary goal of naira redesign is to lessen kidnapping and the rapidly growing ransom trade. They typically hoard money, which is against the law in their field of business.
1. Naira redesign will aid EFCC in its fight against money laundering.
The Economic and Financial Crime Commission (EFCC) in Nigeria will benefit from the naira redesign by curbing money laundering. he EFCC boss has said “the objectives which the CBN seeks to achieve with the redesign and reissue of the higher denomination naira notes, are in tandem with the objectives of the Money Laundering Prevention Prohibition Act 2022, which criminalises the conduct of cash transactions above a certain threshold.”Many corrupt government officials, both former and current, have amassed large sums of old naira; as a result, they may now move around with it in a bullion van unhindered. Therefore, the redesign of the naira will force dishonest politicians who go in bullion vans to explain how they are able to get money.
2. Minimize vote buying in 2023 election
The main thrust while Nigeria government’s redesign Naira note is to seize any funds that are not under the CBN’s jurisdiction. The governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, in 2023 succinitly put “outside bank vaults, N2.7 trillion out of the total N3.23 trillion is in private vault”
Vote-buying and the acquisition of permanent voter cards will be addressed by the redesign of the naira in the elections of 2023. The unexpected CBN regulation of redesigning some currencies is predicted to surprise the system during the election period in Nigeria and have an impact on politicians who have accumulated sizable financial campaign cash to fight the 2023 election, because all old currencies are expected to return to the bank vault by February 10, 2023.
3. Reduce over depenency of Naira in Cash
Carrying cash in your hand will be reduced to a bare minimum with the redesign of the new naira. The new withdrawal regime further pegged the maximum cash withdrawal per week via an automated teller Machine (ATM) at N100,000 subject to a maximum of N20,000 cash withdrawal per day. Also, only denominations of N200 and below shall be loaded into ATMs while the maximum amount that can be withdrawn via Point of Sale (POS) terminal was limited to N20,000 daily.
This limitations placed on daily withdrawal will make Nigerian people to explore other alternative payment options like the USSD, online transfers etc
4. Encourage the re-adoption of E-naira
According to Section 19 of the CBN Act, the CBN issued the enaira as a digital form of fiat currency. It is a direct obligation of the CBN and legal tender that is also included in the currency in use in Nigerian society. The naira redesign will now encourage Nigerians to re-adopt the use of Enaira digital payment which was met with negative critiscism when it was launched.
5. Revolutionalization of digital payment system
The ongoing development of the internet and electronic commerce has altered how goods and services are promoted and sold. The development of electronic information resources and the digital era have raised a number of new problems for individuals who sell goods and provide information services. The customer’s need for greater convenience, better services, and time savings changes how businesses engage with their customers as a result of the Internet. With regard to how we manage service quality, one of the primary jobs of the internet as a communication medium and one that is crucial to customer happiness, the goal of the naira redesign is to revolutionalize the Nigerian ecosystem.
6. Reduction of Crime and crime tracking
CBN naira redesign comprehensive feature approach raises the bar for the new banknote design and security features. Benefit from a customized combination of visual effects such as breathtaking dynamics, unique ColorShift, and machine-readable features such as MultiCode™. The new banknotes will continue to be a dependable and secure form of payment thanks to unwavering security, environmentally friendly manufacturing, and maximum design and customisation options.
The MultiCode™ in the new naira will help in crime tracking. Kidnappers who collects money for ransome will be tracked via the MultiCode security embedded in the new naira.
IMPACT OF NAIRA REDESIGN ON NIGERIA ECONOMIC DEVELOPMENT
- Naira redesign will aid EFCC in its fight against money laundering
- Minimize vote buying in 2023 election
- Reduce over depenency of Naira in Cash
- Encourage the re-adoption of E-naira
- Revolutionalization of digital payment system
- Reduction of Crime and crime tracking
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