Economic instrument or political tool? An assessment of the socioeconomic outcomes of the Central Bank of Nigeria’s 2022 currency redesign and cashless policy

In 2022, the Central Bank of Nigeria (CBN) introduced a policy to redesign some denominations of the Naira as part of its responsibility to regulate the monetary system in the country. The new monetary policy was greeted with mixed reactions across Nigerian society, as experts, different stakeholders and the public considered its implications. The implementation of the policy led to numerous outcomes, including a scarcity of the new banknotes, which frustrated financial transactions and sparked protests from the general public. While the CBN insisted that the policy was an economic instrument, some observers argued that the policy was a political tool designed to advance elite interests. This article assesses the sociopolitical and economic implications of the CBN’s currency redesign and cash withdrawal limit policy.