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New Notes Fail To Curb Rise In Inflation Rate

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2 years ago

March 15, 2023

There are indications that the objectives of redesigning the naira notes might have failed after all.

Prior to the unveiling of the new naira notes namely N1,000, N500, and N200, there had been speculations that the project was meant to turn the country’s economy into a cashless one, reduce the money in circulation, tackle counterfeiting and eventually reduce the nation’s inflation rate.

However, this has proven to be partly a failure, as the country’s consumer price index (CPI), which measures inflation or the rate of change in prices of goods and services, increased to 21.91 percent in February 2023, up from 21.82 percent in the previous month.

The inflation rate data is contained the latest CPI report released on Wednesday by the National Bureau of Statistics (NBS).

The increase comes across as the second consecutive rise in the country’s inflation figure this year, as Nigerians struggle to access cash for their daily needs.

Recall that President Muhammadu Buhari officially unveiled the newly redesigned naira denominations introduced by the Central Bank of Nigeria (CBN) in November 2022.

The newly redesigned naira was launched ahead of the weekly Federal Executive Council (FEC) held inside the Council Chamber of the Presidential Villa, Abuja.

The CBN had on October 26 announced its plan to redesign 200, 500 and 1000 naira notes. It gave December 15, 2022 as the date to start circulating the new notes.

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