Money is a means of exchange of goods and services it can either be physical cash or a digital currency. Before the introduction of money people exchange goods and services through barter trading system, Money was introduced all over the world in Asia, Africa and Europe just to make buying and selling much more easier for people. In 21st Century digital currency was introduced digital currency like crypto, electronic currency.
Nigeria use both physical cash and digital currency. In 2021 Central Bank of Nigeria ban every crypto currency transaction in Nigeria, Centra bank put restriction on bank from processing crypto currency transaction. In 2022 Central Bank of Nigeria introduce E Naira, it's a digital currency it was build to function like a crypto currency but it's only the Central Bank of Nigeria can mint it.
Nigeria economy is in serious problem because of new naira note introduce by the Central Bank of Nigeria. The Apex bank of Nigeria introduce new 200, 500 and 1000 naira note. Declaring that the old 200, 500 and 1000 naira note will note be use as a legal tender from January. This policy look shocking and funny because the Apex bank only gave three month noticed. However the Apex bank implant the policy. The Apex bank claim that it's necessary to redesign the naira bank of security reason and also for the bank to have full control of the cash in circulation, about 70% of cash in circulation is outside the banking system. Some Nigerian have argued that this policy is politically motivated because Nigeria is in election circle.
The Naira resigned policy introduce by the Apex bank as failed because it faid to produce enough new note that will serve the population, Nigeria as about 200 million population this policy as made alot of Nigerian suffer both the rich and the poor suffer because of the bad policy. People don't cash to pay for goods or pay for transportation services.Nigeria as huge population of literate and people that does not use the internet, some does not have phone, the Apex bank force the policy on the citizens. For each transaction done online the federal government collect tax of 1.70 naira, this policy increase the tax of federal government, but inflicted pains of the citizens..
Nigeria supreme court gave judgement that both the old naira note and new naira note should co exist till December 2023, yesterday the Apex bank release a statement that the old naira note remain legal tender.
Fell free to share your perspective about this topic of Naira resigned and what you think the Apex bank ought to have done to make the policy successful.
