An Examination of the Nigeria’s Controversial Currency Redesign Policy and The Reasons for the Policy Failure: A Political - Economic Ramifications Perspectives.

Abstract

The financial sector reform process is critical for economic growth and development. These perspectives are frequently emphasised in empirical research that relate financial sector expansion to economic growth. Recognising this, Nigerian economic managers have concentrated on the banking sector as a tool for influencing economic policy changes and adjustments. The most recent economic policy enacted by these financial sectors was the formal introduction of cashless financial policy in December 2022. This article extends on prior research and examines the performance of the Naira revised policy, what caused its failure, and what might have been done to make it effective.

This research looked at how a currency redesign policy paired with a cashless policy plan affected financial performance and the Nigerian macroeconomy. To look into this, the researcher did a systematic literature review (SLR). A SLR was performed on a sample of 120 research papers selected from a pool of 400 publications obtained from Scopus, Web of Science, Google Scholar, ABS journals, and other sources.  As a result, the currency reform strategy provides significant benefits for the financial sector. It is recommended that a suitable infrastructural and legal framework be built to facilitate the programme's efficient execution. The redesign of Nigerian currency, the naira, resulted in a cash shortage and economic hardship for the Nigerians. Policymakers can still implement recommendations by taking into account a variety of issues.