Are there Benefits of Naira Redenomination? Empirical Evidence from Ekiti State University

Abstract

Redenomination of naira has constituted the themes and subject matters of many workshops, conferences and seminars. It has also made top headlines on pages of national dailies and periodicals and has also become subjects of debate in the academia. The consideration ranges from the objectives of naira redenomination to its benefits. Hence, the study examined the benefits of naira redenomination in Nigeria. It employed descriptive statistics with experimental research design and administered questionnaires to 120 randomly selected among lecturers and postgraduate students of departments of management science, economic and political science, Ekiti State University, Ado-Ekiti, Ekiti State, Nigeria. From the findings, it was discovered that there are many benefits of naira redenomination to Nigerian economy including efficient pricing, efficient payment system, easy conversion to other currencies, reduction cost of printing, distribution and processing of currency, portability of the currency units, reduction in transaction in efficiency, promotion of macro-economic stability etc. The findings concluded that the federal Government and Central Bank of Nigeria should revisit the policy, enlighten the general public about the benefits of naira redenomination and complement redenomination with infrastructural development in both rural and urban areas of the country.