Banking and Finance Project Topics

Effect of Nigeria’s Recent Currency Redesign Policy on Small-scale Businesses Operation in Abakaliki Metropolis

Effect of Nigeria's Recent Currency Redesign Policy on Small-scale Businesses Operation in Abakaliki Metropolis

Effect of Nigeria’s Recent Currency Redesign Policy on Small-scale Businesses Operation in Abakaliki Metropolis

Chapter One

Objectives of the Study

The study sought to achieve the following objectives:

  1. To assess the impact of the recent currency redesign on transaction processes in small-scale businesses in Abakaliki Metropolis.
  2. To examine changes in consumer spending patterns following the currency redesign policy in the study area.
  3. To analyse the adjustments in pricing strategies adopted by small-scale businesses in response to the currency redesign.



Conceptual Review

Currency Redesign and Security Features

The concept of currency redesign, as underscored by the Central Bank of Nigeria (CBN) in its press release of September 29, 2020, titled “President Jonathan Launches N50 Anniversary Note,” represents a strategic initiative aimed at fortifying the nation’s currency against the persistent threat of counterfeiting (CBN, 2020). This redesign goes beyond a cosmetic transformation, delving into the incorporation of advanced security features and technological advancements. The emphasis is on creating a more secure currency that not only serves as a medium of exchange but also acts as a robust deterrent against counterfeiters seeking to compromise the integrity of the national currency.

In the realm of currency redesign, the integration of advanced security features is a pivotal aspect. The CBN’s proactive approach, as highlighted in the press release, focuses on deploying cutting-edge security measures to safeguard the new banknotes from counterfeiting attempts (CBN, 2020). Such security features may include intricate designs, holographic elements, and other technologically sophisticated elements that make it exceedingly challenging for counterfeiters to replicate or produce fake currency. This exploration of advanced security features signifies a commitment to staying ahead of counterfeiters, demonstrating a forward-thinking approach to currency management.

Technological advancements play a crucial role in the currency redesign initiative. The incorporation of state-of-the-art technologies is geared towards not only enhancing the security of the currency but also ensuring its resilience in the face of evolving counterfeiting techniques. The use of cutting-edge technology aligns with global trends in currency design and serves as a proactive measure to mitigate the risks associated with counterfeit currency circulation (CBN, 2020). This exploration and integration of technological advancements underscore the CBN’s commitment to leveraging innovation for the benefit of a more secure and resilient currency.

In summary, the exploration of currency redesign in the context of security features and technological advancements, as elucidated by the CBN’s press release of 2020, emphasizes a comprehensive approach to combat counterfeiting. By delving into advanced security features and leveraging technological advancements, the currency redesign initiative aims not only to enhance the security of the nation’s currency but also to stay ahead in the ongoing battle against counterfeiters (CBN, 2020). This strategic approach positions the redesigned currency as a robust instrument in maintaining the integrity and credibility of Nigeria’s financial system.

Transaction Processes in Small-Scale Businesses

An in-depth analysis of transaction processes within the sphere of small-scale businesses unveils the intricate ways in which the currency redesign has influenced their day-to-day operations and financial transactions (Abubakar, 2022). Small-scale businesses, being integral components of local economies, often experience immediate and tangible impacts when currency dynamics undergo significant changes. The study delves into the nuances of how these enterprises conduct their financial transactions, encompassing aspects such as cash handling, customer payments, and cash flow management.

The currency redesign’s influence on transaction processes within small-scale businesses manifests in various facets. Changes in the physical attributes of the currency, such as new security features or altered denominations, can directly affect the handling and acceptance of cash transactions (Abubakar, 2022). This includes potential challenges in verifying the authenticity of the redesigned banknotes and adjustments required in cash management practices within these enterprises.

Moreover, the study navigates through the terrain of customer transactions and interactions. It delves into how the currency redesign influences consumer behaviour concerning payment methods and spending habits within small-scale businesses (Abubakar, 2022). Businesses may encounter shifts in customer preferences regarding payment modes or changes in purchase patterns due to perceptions about the redesigned currency’s credibility or usability.

Cash flow management becomes a critical focal point within this analysis. The study scrutinizes how the currency redesign impacts the liquidity and financial stability of small-scale enterprises (Abubakar, 2022). Fluctuations in transaction processes, potentially arising from adjustments necessitated by the redesigned currency, could influence the cash flow dynamics within these businesses, affecting their operational capabilities.

In summary, the examination of transaction processes within small-scale businesses in the context of the currency redesign, as explored by Abubakar (2022), unveils a comprehensive understanding of the operational shifts and challenges faced by these enterprises. By dissecting the impact on cash handling, customer transactions, and cash flow management, the study offers insights into how the currency redesign reverberates through the day-to-day operations of small-scale businesses, shedding light on the challenges and adaptations required in response to these currency dynamics.




The methodology employed in this study was meticulously crafted to address the research objectives and investigate the effects of Nigeria’s recent currency redesign policy on small-scale businesses in Abakaliki Metropolis. Following the guidance of established research, this chapter outlines the research design, population, sampling technique, data collection methods, data analysis approach, and ethical considerations integral to this investigation.

Research Design

In this study, a quantitative survey research design was employed to systematically gather numerical data from a substantial sample, offering statistical insights into the repercussions of the currency redesign on small-scale businesses in Abakaliki Metropolis. The selection of a quantitative survey design was rooted in its capacity to facilitate the structured and quantifiable collection of data. This methodology allowed for the application of statistical analysis to derive meaningful conclusions from the responses (Saunders et al., 2019). The rationale behind opting for this approach was aligned with the research’s objective of achieving a comprehensive understanding of the extensive implications stemming from the currency redesign policy on small-scale businesses.

The research design’s appropriateness was driven by the need to capture a wide-ranging view of the effects of the currency redesign on the targeted businesses. By systematically administering a survey to a large sample, the study aimed to gather diverse and representative data that could be analyzed quantitatively. This approach not only facilitated the identification of trends and patterns but also enabled the generation of statistically significant insights into how the currency redesign impacted small-scale businesses in Abakaliki Metropolis. The quantitative survey design, as guided by established research methods (Saunders et al., 2019), ensured a robust methodology for investigating the multifaceted implications of the currency redesign policy in the chosen business context.

 Population of the Study

The target population for this study included small-scale businesses in Abakaliki Metropolis, taking into account the economic diversity and representation across various sectors within the area. The decision to designate this specific population was justified by the necessity to obtain a comprehensive and diverse dataset that accurately mirrored the heterogeneity of small-scale businesses in the region. The selection of a population size comprising 1200 respondents was rooted in the desire for a robust sample that could capture the varied dynamics within the small-scale business community. This substantial sample size was crucial in enhancing the generalizability of the study’s findings to the wider small-scale business landscape in Abakaliki Metropolis. The intention was to ensure that the research outcomes provided a representative and nuanced snapshot of the challenges and responses experienced by small-scale businesses in the aftermath of the currency redesign, aligning with established research methodologies (Anderson et al., 2020).



Data Presentation




Summary of Findings

The findings from the study provide a comprehensive understanding of the impact of the recent currency redesign on small-scale businesses in Abakaliki Metropolis. These findings are crucial for policymakers, business owners, and the broader community as they navigate the economic landscape shaped by the currency redesign policy.

The analysis of Table 4.6 indicates that a substantial proportion of respondents (67.3%) agreed or strongly agreed that the recent currency redesign positively influenced the efficiency of transaction processes in their small-scale businesses. This suggests that the redesign has had a tangible impact on improving the day-to-day operations of these enterprises. The findings align with the intended goal of the redesign, emphasizing enhanced security features and technological advancements to combat counterfeiting (CBN, 2020).

Moreover, Table 4.7 highlights that a majority of respondents (73.1%) agreed or strongly agreed that there has been an improvement in the speed and convenience of financial transactions since the implementation of the currency redesign policy. This positive trend in transaction speed could be attributed to the technological advancements incorporated into the redesigned currency. However, it is noteworthy that a segment of respondents (23.1%) expressed uncertainty or disagreement, indicating the presence of diverse experiences among businesses in the metropolis.

Security Measures in Financial Transactions: Table 4.8 shows that a significant portion of respondents (68.3%) agreed or strongly agreed that the currency redesign has led to increased security measures in their financial transactions, thereby enhancing the safety of these transactions. This finding supports the government’s objective of curbing counterfeiting through advanced security features (CBN, 2020). However, it is crucial to address the concerns of the 28.8% who expressed uncertainty or disagreement, as this reflects a notable segment of businesses that may not perceive a substantial improvement in security measures.

The study’s findings, as presented in Table 4.9, indicate that a considerable percentage of respondents (77.9%) agreed or strongly agreed that the recent currency redesign has created challenges in the accuracy and reliability of their transaction processes. This suggests that while the redesign may have brought positive changes, it has also introduced complexities that businesses need to navigate. The challenges in accuracy could be attributed to the adjustment period during the implementation of the redesigned currency.

Moving to consumer behaviour, Table 4.10 sheds light on how consumers in the study area have adapted to the currency redesign. A majority of respondents (67.3%) agreed or strongly agreed that consumers have become more cautious in their spending habits following the redesign. This finding suggests a shift in consumer behaviour, possibly influenced by uncertainties or adjustments prompted by the redesigned currency.

Table 4.11 provides insights into the impact of the redesign on consumer spending in small-scale businesses. A significant proportion of respondents (75%) agreed or strongly agreed that the currency redesign has led to an increase in consumer spending on essential goods and services in their businesses. This finding indicates a positive economic outcome, with consumers prioritizing essential purchases.

Moreover, Table 4.12 highlights that a majority of respondents (70.2%) agreed or strongly agreed that consumers in the study area have exhibited a shift towards digital or non-cash transactions since the implementation of the currency redesign policy. This shift aligns with global trends towards digitalization and could have implications for businesses in terms of adapting to changing payment preferences.

Table 4.13 reveals that a substantial proportion of respondents (72.1%) agreed or strongly agreed that small-scale businesses have witnessed a decline in overall consumer spending as a result of the currency redesign. This finding underscores the economic challenges faced by businesses, emphasizing the need for adaptive strategies to maintain financial stability.

In terms of pricing strategies, Table 4.14 demonstrates that a majority of respondents (84.6%) agreed or strongly agreed that small-scale businesses in Abakaliki Metropolis have increased prices to compensate for perceived losses due to the currency redesign. This suggests that businesses have felt the need to adjust their pricing strategies to cope with the economic changes introduced by the redesign.

Flexibility and Transparency in Pricing: On the aspect of flexibility, Table 4.15 shows that 78% of respondents either agreed or strongly agreed that the recent currency redesign has prompted small-scale businesses to adopt flexible pricing strategies to remain competitive. This highlights the adaptive measures taken by businesses to navigate the changing economic landscape.

Moreover, Table 4.16 indicates that a significant proportion of respondents (80.4%) agreed or strongly agreed that the currency redesign has led to a more transparent and straightforward pricing structure in small-scale businesses. This positive outcome could contribute to increased consumer trust and satisfaction.

However, Table 4.17 reveals that a majority of respondents (81.7%) agreed or strongly agreed that small-scale businesses have faced challenges in communicating and implementing new pricing strategies post-currency redesign. This finding emphasizes the importance of effective communication strategies for businesses to convey pricing adjustments to their customers successfully.

The one-sample t-test, as presented in Table 4.18, provides statistical insights into the impact of the currency redesign on transaction processes, changes in consumer spending patterns, and adjustments in pricing strategies. The mean values for each category suggest that respondents generally perceive positive impacts, although statistical tests are required to validate these perceptions.


In light of the hypotheses tested and the subsequent statistical analyses, the study yields valuable insights into the nuanced impact of the recent currency redesign on small-scale businesses in Abakaliki Metropolis. The findings indicate that the redesign has significantly influenced transaction processes, consumer spending patterns, and pricing strategies. Businesses reported positive changes in transaction efficiency, security measures, and consumer spending, aligning with the intended objectives of the redesign policy. The observed adjustments in pricing strategies reflect the adaptive nature of small-scale enterprises in response to the evolving economic environment.

However, it is crucial to acknowledge the challenges highlighted in the study, such as the perceived decline in transaction accuracy and the communication hurdles in implementing new pricing strategies. These challenges underscore the complexity of managing transitions in currency systems and emphasize the need for targeted support mechanisms.

Overall, the study contributes empirical evidence that informs both policymakers and small-scale businesses about the multifaceted consequences of currency redesign. As businesses navigate the intricacies introduced by the redesigned currency, policymakers can leverage these findings to tailor interventions that address specific challenges and foster a more seamless transition. The study underscores the importance of a holistic approach to policy implementation, considering both the intended benefits and the challenges experienced by businesses in Abakaliki Metropolis.


  1. Enhance Communication Strategies: Recognizing the challenges small-scale businesses face in communicating and implementing new pricing strategies, it is recommended that policymakers and relevant authorities devise effective communication channels. Workshops, seminars, and accessible informational materials can aid businesses in understanding and implementing pricing adjustments more seamlessly.
  2. Capacity Building Programs: Given the positive impact of the recent currency redesign on transaction efficiency, there is an opportunity to further enhance the capabilities of small-scale businesses. Introducing capacity-building programs that focus on technological proficiency and digital transactions can empower businesses to leverage the redesign’s benefits fully.
  3. Continuous Monitoring and Evaluation: Establishing a robust monitoring and evaluation system is crucial to assess the ongoing impact of the currency redesign on small-scale businesses. Regular assessments can identify emerging challenges, enabling timely policy adjustments and support measures.
  4. Financial Literacy Programs: Recognizing the shift towards digital transactions, implementing financial literacy programs can empower businesses and consumers alike. This includes educating them on the advantages, risks, and best practices associated with digital financial transactions.
  5. Collaborative Initiatives: Facilitate collaboration between policymakers, financial institutions, and small-scale businesses. Joint initiatives can lead to tailored financial solutions, including affordable loans and grants, to support businesses in adapting to the redesigned currency landscape.
  6. Accessibility to Authentication Technologies: In response to concerns about the accuracy and reliability of transaction processes, ensuring the accessibility of reliable and affordable authentication technologies can alleviate these challenges. Businesses can benefit from technologies that enhance the security of financial transactions.
  7. Regular Review of Pricing Strategies: Encourage small-scale businesses to regularly review and adjust pricing strategies based on market dynamics. This flexibility is vital for businesses to remain competitive and adapt to evolving economic conditions, ensuring sustained growth.
  8. Policy Flexibility: Policymakers should maintain a degree of flexibility in currency redesign policies. The study reveals that the impact of such policies can vary among businesses. Regular reviews and adjustments to policy frameworks based on real-time feedback will contribute to a more adaptive and supportive economic environment for small-scale enterprises.

Contribution to Knowledge

This study significantly contributes to the existing body of knowledge by shedding light on the multifaceted impact of the recent currency redesign on small-scale businesses in Abakaliki Metropolis. The exploration of transaction processes (Table 4.6) reveals a positive influence on efficiency for a substantial portion of businesses. This nuanced understanding is crucial, as it challenges previous assumptions about potential disruptions during currency redesigns. The identification of challenges in accuracy and reliability (Table 4.9) highlights specific areas that require attention, guiding policymakers and businesses toward targeted solutions to enhance transaction processes.

Consumer spending patterns have been a subject of considerable concern in the wake of currency redesigns globally. This study (Table 4.10) demonstrates a nuanced perspective, indicating that while a significant portion of consumers has become more cautious, a considerable number still maintain pre-redesign spending habits. This finding contributes to the literature by emphasizing the heterogeneity in consumer responses, challenging generalized assumptions about spending behaviour post-redesign.

The study’s examination of pricing strategies (Table 4.14) and the subsequent adoption of flexible pricing approaches (Table 4.15) contributes valuable insights into the adaptive capacity of small-scale businesses. It suggests that businesses are not only adjusting to compensate for perceived losses but also actively employing strategic flexibility. This nuanced understanding of pricing dynamics offers a more comprehensive view of how businesses navigate economic changes, contributing to a deeper comprehension of microeconomic responses to macroeconomic policies.

Furthermore, the utilization of a one-sample t-test (Table 4.18) to test hypotheses related to the impact of currency redesign on transaction processes, consumer spending patterns, and pricing strategies adds a quantitative dimension to the study. This methodological choice enhances the robustness of the findings, providing statistical evidence to support or refute the stated hypotheses. The integration of quantitative analysis contributes methodological diversity to the literature on the impacts of currency redesigns.


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