The decision of the Central bank of Nigeria to redesign some denominations of the nation’s currency has received lots of backlash from financial analysts and economists in the country.
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This has however not succeeded in discouraging the CBN to discontinue its plan to redesign the nation’s currency seeing as it will be beneficial to the country in terms of walking out of inflation and the so many attendant challenges facing the economy.
Recall that the Governor of the Apex bank had said that more than N2.73 trillion out of the N3.23 trillion currency in circulation is outside the banking sector, this is why the central bank is employing necessary avenues to mop up all cash from the economy, both within the vaults of banks and in the hands of citizens.
This move of the Federal Government will be a major boost in the fight against counterfeit currencies that are already in circulation, it will also aid in curbing illegalities such as tax evasion and address the inflation problem bedeviling the country’s economy.
According to the Mr. Godwin Emefiele, “the CBN redesigning the banknotes is based on the fact that currency management has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.”
The issue of the high cost of managing the currency which has become a serious challenge for the CBN will be addressed. Also, the planned redesigning of the naira notes will reduce vote buying during the forthcoming 2023 general elections and reduce large scale hoarding of the currency as those who have kept or starched money up will not be able to use the money for the illegal purposes of their planning.
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Political campaign funding will be easily monitored via this well intended policy of the CBN to redesign the nation’s legal tender, obviously a lot of those who engage in illegalities businesses would have had to start strategizing on how to get whatever funds they have at home or in the soak-away to the banks.
The plan might not look good right now but it will benefit Nigerians in the future
