Currency Redesign Policy Implementation: Implications for Industrial Performance in Nigeria ()
ABSTRACT
This paper investigates the effect of currency
redesign policy implementation on industrial performance in Nigeria. The study
adopted survey research design using Google Form and Computer Aided Personal
Interviewing (CAPI) tool for data collection, which were carried out in the
months of February and March 2023. A total of 514 micro, small, medium and
large scale enterprises (MSMLEs) were randomly selected across some selected
industrial sectors in five states within the six geo-political zones and
Federal Capital Territory, Abuja, Nigeria. A response rate of 59.53% at a
reliability level of 95% was recorded. The study revealed that the currency
redesign policy implementation has negative short term effect on industrial
performance. The effect includes weak access to cash flow, vulnerable economic
hardship, inadequate marketing/loss of customers; and low returns on business
investment. In the long run, the study revealed the positive effect of the
policy as leading to reduced currency counterfeiting, encouraged a
cashless economy, addressing cash hoarding that has led to
reduction in the incidences of kidnapping and terrorism as well as strengthen
the Naira against the US dollar in the long run term. The result also revealed
that the policy has a significant difference (X2 = 15.3, p ≤ 0.05) on enterprise performances by
scale from small to large. The paper concludes that the currency redesign
policy implementation has both negative and positive implications for
industrial performance. The paper recommends the need to make Nigerian monetary
policy implementations more industrially effective
and friendly in the future. Moreso, monetary policy should be set in such a way
that the objective it wants to achieve is clearly and transparently defined in
response to the dynamics of the domestic and global economic developments for
industrial growth in Nigeria.
Share and Cite:
Dada, A. (2023) Currency Redesign Policy Implementation: Implications for Industrial Performance in Nigeria.
American Journal of Industrial and Business Management,
13, 889-910. doi:
10.4236/ajibm.2023.139050.
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