Nigeria’s central bank made critical mistakes that doomed the country’s currency redesign
NIGERIA has successfully introduced new banknotes on about 10 occasions since its independence in 1960. So why has the latest attempt been so controversial and traumatic? And what measures need to be taken to avoid a future debacle? Nigeria’s central bank announced the introduction of new banknotes last November, with the changeover to new notes scheduled for mid-December. The rollout of the policy disintegrated into chaos, amid mounting anger among ordinary Nigerians. The rollout of the currency change was disastrous. The fallout included: Severe shortages of the new banknotes. Precipitous declines in business transactions (especially in the informal sector). Long…