EFFECT OF THE NAIRA REDESIGN POLICY ON THE ECONOMIC GROWTH OF NIGERIA

Abstract

The study examined the effect of the Naira Redesign Policy on Nigeria's economic growth. The specific objectives of the study are to; examine the effect of the Inflation Rate on the Gross Domestic Product (GDP) Growth Rate, and evaluate the effect of the Financial Inclusion Rate on the Gross Domestic Product (GDP) Growth Rate in Nigeria. A mixed-methods research design was employed, combining quantitative and qualitative approaches to provide a comprehensive understanding of the policy's impact. The study focused on analyzing existing data to derive insights. The data was collected from Central Bank of Nigeria (CBN) publications, and National Bureau of Statistics (NBS) reports. Reports from banks and international financial organizations (e.g., World Bank, IMF). The data collected was analyzed using multiple regression analysis. The result revealed that the Inflation Rate has a significant effect on the Gross Domestic Product (GDP) Growth Rate with (β2 = −0.292;p < 0.05), while the Financial Inclusion Rate has no significant effect on the Gross Domestic Product (GDP) Growth Rate with (β1 = −0.452;p > 0.05). in Nigeria. The study concluded that the Naira Redesign Policy has contributed to the dynamics of Nigeria's economy, but its effects are nuanced. The study recommended that the government and the Central Bank of Nigeria (CBN) should implement robust monetary policies aimed at curbing inflation