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VOL. 9, ISSUE 1 (2024)
Currency redesign and cash crunch: Implications on demand for consumer goods in Nigeria
Authors
Abereola, Samuel Niyi, Ogunode Philips Olatunde, Ajibola O Peter Adu
Abstract
The primary goal of
redesigning the naira is to enhance banknote security, preventing
counterfeiting, protecting the nation's common legacy, managing the amount of
money in circulation, and decreasing the total cost of currency management.
Although the government of Nigeria meant well by introducing this policy but
the attendant effect of its introduction has negatively affected sales and
demand for consumers goods. This study examined the effect of currency redesign
and naira crunch on demand for consumers’ goods in Nigeria. The study adopted
survey research design while the population of the study consists of sellers
and buyers of consumers’ goods at ‘Oja Oba’, in Ado-Ekiti, Ekiti State Nigeria.
Since there is no sampling frame for the study, the researchers used
convenience sampling to select 100 sellers and 200 customers making a total of
300 respondents. Questionnaire was the instrument for data collection. Data
collected was collated and analysed using binary logic regression. The finding
revealed that currency redesign and cash crunch has significant negative effect
on sales and purchases of consumers’ goods in Ado-Ekiti within the period under
focus. This study recommends that relevant government Agencies should create
sufficient awareness to encourage petty traders and sellers of consumers’ goods
to open bank account and make it functional. More so, Government at all levels
should carry members of the public along when formulating policies that affect
them before implementation.
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Pages:19-22
How to cite this article:
Abereola, Samuel Niyi, Ogunode Philips Olatunde, Ajibola O Peter Adu "Currency redesign and cash crunch: Implications on demand for consumer goods in Nigeria". International Journal of Academic Research and Development, Vol 9, Issue 1, 2024, Pages 19-22
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