In October 2022, the former governor of the Central Bank of Nigeria (CBN) issued directives regarding introducing new naira notes to replace the current denominations of 200, 500, and 1,000 naira notes. This policy, implemented in January 2023 brought about a significant impact on the Nigerian economy. The paper employed a qualitative approach, utilizing secondary data from a comprehensive review of academic journals, case reports, and other online sources. This work adopted the Rational choice theory and the Quantity theory of money to explain the situations around the the naira redesign and recommended that for monetary policy to be effective a well structured implementation plan should be set in place and strengthen the financial infrastructure.
Esq et al. (Thu,) studied this question.