Abstract
This study was on The Impact of Naira Redesign in Curbing Corruption in Nigeria. Three objectives were raised which included: Â To evaluate the effectiveness of the redesigned Naira’s advanced security features in reducing counterfeit currency circulation and its association with money laundering and corrupt practices, to examine the extent to which the Naira redesign contributes to enhancing transparency and accountability in financial transactions, particularly in reducing opportunities for corruption in Nigeria and to assess the impact of public awareness campaigns and civic engagement initiatives related to the redesigned Naira on curbing corruption and encouraging citizens to identify and report corrupt practices. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from residents in Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Chapter one
Introduction
- Background of the study
Corruption has long been a significant challenge in Nigeria, impeding the country’s economic development and eroding public trust in government institutions. To combat this pervasive issue, the Central Bank of Nigeria (CBN) introduced a redesigned currency, the Naira, with enhanced security features and a renewed emphasis on transparency. This study examines the impact of the Naira redesign in curbing corruption in Nigeria, drawing on available evidence and studies.
The redesigned Naira incorporates advanced security features, making it more difficult for counterfeiters to replicate. This measure helps reduce the circulation of fake currency, which has been linked to money laundering and corrupt practices (Oloyede & Olaoye, 2018). By safeguarding the integrity of the currency, the redesign aims to curb illicit financial flows and illicit activities associated with counterfeit money.
The Naira redesign is accompanied by a concerted effort to promote transparency and accountability in financial transactions. As part of this initiative, the Nigerian government has encouraged the use of digital payment systems, such as mobile banking and electronic transfers, which leave a digital trail. This shift towards electronic payments can enhance accountability and traceability in financial transactions, thereby reducing opportunities for corruption (Ezeanya, 2018).
The CBN and other government agencies have actively engaged with the public to raise awareness about the redesigned Naira’s features and its significance in the fight against corruption. Through various media campaigns, workshops, and educational programs, citizens are encouraged to identify and report corrupt practices involving the currency. This heightened public awareness can lead to a more vigilant and participatory society, acting as a deterrent to corruption (Isa, 2021).
The Naira redesign has also extended to public offices, where the currency is used for official transactions. The adoption of the new currency in government agencies has facilitated financial accountability and reduced the opportunities for graft in public procurement processes and other financial dealings (Ibrahim, 2019).
While the Naira redesign has shown promising results in curbing corruption, it faces some challenges. The high cost of currency redesign and implementation, as well as resistance from corrupt networks that benefit from the existing system, can hinder its full effectiveness (Isa, 2021).
The Naira redesign in Nigeria represents a significant step towards combating corruption and improving financial integrity. By incorporating advanced security features, promoting transparency and accountability, engaging citizens, and fostering a culture of vigilance, the redesigned Naira seeks to disrupt corrupt practices and promote sustainable economic growth. However, ongoing evaluation and adaptation of anti-corruption strategies are necessary to address the evolving challenges and ensure the long-term success of this initiative.
Statement of the problem
Corruption has long been a pervasive and deep-rooted issue in Nigeria, posing significant challenges to the country’s socio-economic development and political stability. Various government initiatives and anti-corruption measures have been implemented over the years to tackle this problem, but the success has been limited. In response to this persistent challenge, the Central Bank of Nigeria (CBN) introduced a redesigned currency, the Naira, with enhanced security features and a renewed emphasis on transparency. However, the effectiveness of the Naira redesign in curbing corruption remains a subject of concern and warrants thorough investigation.
Key questions to be addressed:
- Is the redesigned Naira with improved security features effective in curbing counterfeit currency circulation, which has been linked to money laundering and corrupt practices?
- To what extent does the Naira redesign contribute to enhancing transparency and accountability in financial transactions, particularly in reducing opportunities for corruption in Nigeria?
- What is the impact of public awareness campaigns and civic engagement initiatives related to the redesigned Naira on curbing corruption and encouraging citizens to identify and report corrupt practices?
- How has the Naira redesign influenced corruption in public offices and financial dealings involving government agencies?
- What are the limitations and challenges faced in the implementation and adoption of the Naira redesign as a tool to combat corruption in Nigeria?
Addressing these questions will provide a comprehensive understanding of the effectiveness and potential shortcomings of the Naira redesign in the fight against corruption in Nigeria. The findings of this study will be essential in informing policymakers, government agencies, and relevant stakeholders on the most appropriate strategies and measures to address corruption effectively and promote transparency and integrity in the country’s financial system.
Objective of the study
The primary objective of this study is to assess the impact of the Naira redesign in curbing corruption in Nigeria. To achieve this, the study will focus on the following specific objectives:
- To evaluate the effectiveness of the redesigned Naira’s advanced security features in reducing counterfeit currency circulation and its association with money laundering and corrupt practices.
- To examine the extent to which the Naira redesign contributes to enhancing transparency and accountability in financial transactions, particularly in reducing opportunities for corruption in Nigeria.
- To assess the impact of public awareness campaigns and civic engagement initiatives related to the redesigned Naira on curbing corruption and encouraging citizens to identify and report corrupt practices.
Research Hypotheses
The following research hypotheses are formulated;
H1: there is no effectiveness of the redesigned Naira’s advanced security features in reducing counterfeit currency circulation and its association with money laundering and corrupt practices
H2: there is no extent to which the Naira redesign contributes to enhancing transparency and accountability in financial transactions, particularly in reducing opportunities for corruption in Nigeria
Significance of the study
The study on the impact of the Naira redesign in curbing corruption in Nigeria holds significant importance for various stakeholders and has broader implications for the country’s socio-economic development and governance. The following are the key areas of significance:
- Informing Policy Decisions: The findings of this study will provide valuable insights to policymakers and government agencies regarding the effectiveness of the Naira redesign as an anti-corruption measure. The evidence-based recommendations derived from the study can help in formulating more targeted and efficient policies to combat corruption and enhance financial integrity.
- Strengthening Anti-Corruption Strategies: Understanding the strengths and weaknesses of the Naira redesign initiative will enable policymakers and relevant institutions to refine existing anti-corruption strategies. The study can highlight potential areas for improvement and help in developing comprehensive approaches to tackle corruption effectively.
- Enhancing Financial Transparency and Accountability: By examining the impact of the Naira redesign on transparency and accountability in financial transactions, the study can contribute to the broader efforts to create a more transparent and accountable financial system in Nigeria. This can attract foreign investments, improve investor confidence, and foster economic growth
Scope of the study
The scope of the study covers the impact of naira redesign in curbing corruption in Nigeria. The study will be limited to selected residents in Lagos state
Limitation of the study
While the study on the impact of the Naira redesign in curbing corruption in Nigeria aims to provide valuable insights, it is essential to acknowledge its inherent limitations, which may influence the scope and generalizability of the findings:
- Time Constraints: Conducting a comprehensive study on a complex and multifaceted issue like corruption requires significant time and resources. Given the limitations of time for data collection and analysis, the study may not be able to explore all aspects of the Naira redesign’s impact on corruption in-depth.
- Data Availability and Reliability: The study’s reliability and accuracy depend on the availability and quality of data. Access to reliable and up-to-date data on corruption, counterfeiting, and the effectiveness of the Naira redesign may be limited, affecting the robustness of the findings.
- Sample Size and Representativeness: The study’s findings may be influenced by the sample size and representativeness of the selected participants or data sources. A small or non-representative sample may limit the study’s ability to make broader conclusions about the entire Nigerian population.
- Challenges in Measuring Corruption: Corruption is a clandestine activity that is often difficult to measure accurately. The reliance on self-reporting or perception-based data may introduce biases or inaccuracies in assessing the extent of corruption and its relation to the Naira redesign.
Despite these limitations, the study aims to provide valuable insights into the impact of the Naira redesign on curbing corruption in Nigeria. Researchers and readers should interpret the findings with a consideration of these limitations and use them as a basis for further exploration and improvement of anti-corruption strategies.
Definition of terms
Curbing: restrain or keep in check.
Corruption: Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one’s personal gain
Redesign: To change the way something looks or functions is to redesign it
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