Abstract
This study aimed to assess the perception of the public on the impact of the Naira redesign on banditry in Nigeria. A four-point Likert-scale questionnaire was used to gather data from a sample of 100 participants. The results showed that a significant proportion of the participants agreed that the redesign of the Naira notes has had a positive impact on reducing the incidence of banditry in Nigeria. However, a significant proportion of the participants also reported that they were not sure of the impact of the redesign on banditry. The findings highlight the importance of taking a multi-faceted approach in reducing the incidence of banditry, including the redesign of the Naira notes and other security measures aimed at protecting the public. It is recommended that further research be conducted to obtain a more comprehensive understanding of the issue and that efforts be made to improve public education and awareness on the security features of the redesigned Naira notes. Regular assessments of public perception are also recommended to obtain accurate information on the impact of the Naira redesign on banditry in Nigeria.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Currency reforms was regarded as the foundation to further strengthening the macroeconomic framework, particularly monetary transmission, the more the population relies on the local currency rather than U.S. dollars, the more control the government has over macroeconomic policy. Over years, Nigeria has experienced the introduction and redesigning of her currencies in circulations with the CBN playing pivoted roles in protecting its stability (Naseem, ‘2012). This sector’s operations and performance have a direct impact on achieving macroeconomics goals while also improving the economy, recently the Central Bank of Nigeria (CBN 2022) issued a statement that it has concluded plans to redesign the Naira.
The CBN Governor cited money hoarding, inflation, and counterfeiting as major reasons for its unusual decision. The CBN claims that about N2.73 trillion of the N3.23 trillion currency in circulation in Nigeria, is outside the bank vaults. This is about 85% of the total money in circulation (CBN, 2022). Also, the Naira is not as secured as it ought to be, as it is easier to counterfeit theN500 and N1000 denominations.
This policy has elicited serious debate amongst Economists, Lawyers, and other policy experts. Many of them hold the view that this policy changes holds no significant economic benefits for the people, and is a distraction in the midst of serious ravaging economic issues (Akin, 2023).
The CBN in its most recent report, 2020 Currency Report, states that a total of 67,265 pieces of counterfeit notes with a nominal value of N56.83 million was confiscated in 2020, indicating a 20.80% decrease in volume and 12.18% decrease in value, compared with 84,934 pieces valued at N64.71 million in 2019. The Global standard for number of counterfeits per million, is 100. The ratio of counterfeit notes to volume of banknotes in circulation was 13 pieces per million in 2020, compared to 20 pieces per million banknotes in 2019. This shows that the issue of currency counterfeit, is not as rampant as to warrant a currency redesign (IMF, 2022).
Recently several countries have been considering the relative merits of “Dollarization” that is, adopting the currency of an anchor country, one of the main potential costs of dollarization is that macroeconomics stability may be reduced by the loss of monetary policy autonomy, the optimal currency areas, literatures emphasizes that the costs of dollarization are inversely proportional to the correlation between increase in productivity, wealth and capital accumulation of the home country and the foreign country whose country serves as an anchor (Okolie, 2021). Thus the home country is worse off under dollarization to the extent that it faces idiosyncratic shocks, To evaluate the magnitude of these stabilization cost looking at several literatures on currency reforms and it effect on nationals monetary policies.
According to Emefiele, currency management by CBN has faced a number of challenges for some time now. This includes: Significant hoarding of banknotes by members of the public, with statistics showing that over 80% of currency in circulation are outside the vaults of Deposit money banks (Okolie, 2021). At the end of September 2022, available data at the CBN indicate that N2.73 trillion out of the N3.23 trillion currency in circulation, was outside the vaults of Deposit money banks across the country; and supposedly held by the public. This is an indicative that Nigerians have not fully accepted the cashless policy of the Central Bank (Yinnusa, 2022).
The rate of banditry in Nigeria is difficult to accurately determine due to underreporting and a lack of reliable data. However, it is widely recognized as a growing problem in the country, particularly in rural areas where security forces are often scarce (Victor, 2022). Bandits are known to target travelers on highways, attack rural communities, and rob homes and businesses. The Nigerian government has taken steps to address the issue, such as deploying additional security forces and setting up special units to tackle the problem, but the rate of banditry remains high in many parts of the country (Victor, 2022). The proposed purpose of the naira redesign is to curb the increasing rate of banditry in the country. Several notions has been raised by Scholars and Individuals in the country. A certain percentage of Nigerians are in support that the naira redesign policy will reduce banditry, while some percentage asserts that it will not reduce banditry but only have negative impact on the country. It is with this background this study will unravel the impact of naira redesign in curbing banditry in Nigeria.
1.2 Statement of the problem
In recent years, banditry has become a significant security challenge in Nigeria, leading to loss of lives and property. Despite efforts by the government to curb this menace, it persists. The Naira Redesign project aims to improve the security features of the currency to reduce counterfeiting and other financial crimes. The study aims to examine the impact of the Naira Redesign on curbing banditry in Nigeria and determine its effectiveness as a solution to this problem. Every single kind of currency is so much more than its value and the things that
it can buy. Each piece is a representation of the nation that it comes from, and shows the heritage that makes its people proud to be called its own. Currencies also show how rich the culture of each nation is. With prominent people displayed on its face, it gives people a gist of what the country has been through and who played the biggest roles in helping it survive to this day. Different nations have gone through currency redesigns as they cope through different changes. This could be a result of changing regimes, policy or of new principles and beliefs. Regardless of what triggers the change, all this only means one thing: redesigning an entire set of currencies also spell a change in an entire nation. This study is therefore faced with the problem of identifying the impact of naira redesign in curbing banditry in Nigeria.
1.3 Research Objectives
The main objective of the study is to examine the impact of naira redesign in curbing banditry in Nigeria. The specific objectives are:
- To evaluate the effectiveness of the Naira Redesign in reducing the incidence of banditry in Nigeria.
- To determine the level of public confidence in the security of the currency after the redesign.
- To assess the perception of the public on naira redesign impact on banditry
1.4 Research Questions
- What is the effectiveness of the Naira Redesign in reducing the incidence of banditry in Nigeria?
- What is the level of public confidence in the security of the currency after the redesign?
- What is the perception of the public on naira redesign impact on banditry?
1.5 Significance of the Study
Upon completion of the study “Impact of Naira Redesign in Curbing Banditry in Nigeria”, it will present some benefits. Some of the key benefits include:
The study would provide practical insights and recommendations on how currency redesign can be effectively used as a tool to reduce the incidence of banditry in Nigeria.
The findings of the study could be used by the government and other relevant authorities to design a currency that is less susceptible to counterfeiting and criminal activities, thus improving public safety.
The study would contribute to the existing body of knowledge in the field of currency redesign and its impact on crime reduction.
The study could inspire further research into the topic, leading to a deeper understanding of the issue and more effective solutions.
The findings of the study could inform and influence policymaking by providing relevant authorities with practical and evidence-based information to guide decision-making.
Overall, completing the study “Impact of Naira Redesign in Curbing Banditry in Nigeria” would provide a comprehensive understanding of the issue and offer practical solutions to improve public safety, contribute to the existing body of knowledge, and inform policy-making.
1.6 Scope of the Study
The study will focus on the impact of the recent redesign of the Naira currency on the rate of banditry in Nigeria. It will examine the relationship between currency redesign and criminal activities, specifically banditry. The study will focus on the period following the redesign of the Naira currency and its impact on the rate of banditry in Nigeria. The specific time frame will be determined based on the availability of relevant data.
1.7 Operational definition of Terms
Naira redesign: The term “Naira redesign” refers to the process of revising the design of Nigeria’s currency, the Naira. This redesign involves changes to the physical appearance of the currency, such as its color, size, and security features, as well as changes to its denomination. The purpose of a currency redesign is typically to improve its security, prevent counterfeiting, and ensure that the currency remains up-to-date and easily recognizable.
Banditry: Banditry refers to acts of robbery or theft committed by armed robbers or bandits. Banditry typically involves the use of violence or the threat of violence to take property or money from individuals or groups. This type of criminal activity is often carried out in rural or remote areas where the presence of law enforcement is limited.
Crime reduction: Crime reduction refers to the reduction in the number or frequency of criminal acts in a specific geographic area or population. The goal of crime reduction initiatives is to create safer communities and reduce the negative impacts of crime on individuals, families, and businesses.
Public safety: Public safety refers to the measures taken to ensure the well-being and security of individuals, communities, and society as a whole. Public safety encompasses a wide range of initiatives and practices designed to prevent harm, reduce risk, and protect people from harm.
Policy making: Policy making refers to the process by which decisions are made and rules are established that guide the actions of individuals, organizations, or governments. Policy making involves the formulation, implementation, and evaluation of policies that address specific problems or issues.
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