Naira redesign and cash crisis

In October 2022, the Central Bank of Nigeria (CBN) under Governor Godwin Emefiele announced a currency redesign policy, introducing new versions of the 200, 500, and 1,000 naira notes. The policy set a January 31, 2023 deadline for exchanging old notes, later extended to February 10. As the deadline approached, severe cash shortages emerged across the country as banks struggled to distribute sufficient new notes while the old currency lost validity.

The CBN justified the redesign as necessary to control inflation, reduce counterfeiting, and capture currency outside the banking system. However, the timing—just months before the February 2023 presidential election—sparked political controversy, with some viewing it as an attempt to influence electoral outcomes by limiting cash-based vote buying. The policy's implementation coincided with Nigeria's broader economic challenges, including high inflation and foreign exchange pressures that had persisted since the 2016 recession.