Implementing Currency Redesign Policy of the Naira in Nigeria: Stratagems for Reaching Economic Steadiness

Abstract

The main goal of banknote redesign was to achieve certain goals such as enhancing banknote security, preventing counterfeiting, protecting the nation’s common legacy (Pillah 2023:46). This goal was achieved in an electioneering period. This makes monetary policy central to macroeconomic policy and its effectiveness is critical to Nigeria’s overall economic growth. This paper deals with the implementation of the designation of the naira policy, looks at strategies for financial stability, develops a theoretical model of inclusive growth in Nigeria and provides factors for inclusive growth. Monetary policy development and implementation in Nigeria also identified and articulated major challenges that undermine effective monetary policy including underfunded rural sector of Nigeria, underdeveloped money and capital markets, and large amounts of money outside the banking system. The paper however notes that economic policy if properly and efficiently executed, can affect real economic output and positively affect key inclusive growth factors across Nigeria. Among others, this study recommends that the CBN should use a range of complementary monetary policy instruments including interest rates, reserve requirements, open market operations, and monetary stability that the CBN improve to address the problems of inefficiencies in lending, mismanagement of funds, limited access to credit and, the CBN had to ensure the supply new currency alongside old as directed by the Supreme court of Nigeria. An apex court of the Land.