The Bane of Legal Tender Redesign Policy on Economic Growth in Nigeria

• Published in: Acta Universitatis Danubius. Œconomica 2024-01, Vol.20 (1)
• Main Authors: Aribaba, F O, Abdul-Lateef, Olamide Ahmodu, Egbewole, I K, Ajayi, J O, Ogunniyi, O R, Adesunloro, B R, Akinrinlola, M O
• Format: Article
• Language: English
• Subjects: Comparative analysis; Data analysis; Descriptive research; Economic growth; Economic policy; GDP; Gross Domestic Product; Inflation; Inflation rates; Money; Normal distribution; Normality; Patriotism; Regression analysis; Research design; Statistical analysis; Statistical methods; Statistics
• ISSN: 2065-0175; 2067-340X

The study examines the bane of legal tender redesign policies on economic growth in Nigeria. It employed a causal-comparative research design for the study. The data were collected for ten (10) years, spanning from 2013 to 2022, with quarterly observations specifically chosen to capture the recent challenges posed to the Nigerian economy during the period of redesigning the legal tender. The data was sourced from the National Bureau of Statistics (2023) report. The statistical method used included normality testing, descriptive statistics, and OLS regression analysis to test the research hypotheses. Data analysis was conducted using E-views 10.0 statistical software. The finding revealed that Kolmogorov-Smirnov and Shapiro-Wilk tests indicated a normal distribution, except for the inflation rate and GDP. The study's findings led to the rejection of all hypotheses, including INFR (t: 0.368060; p=0.7150>0.05), CPS (t: -0.696308; p=0.4907>0.05), and COB (t: 1.972444; p=0.0563≥0.05). As a result, the study concludes that the redesign of legal tender is only one aspect of economic policy. This suggests that redesigning legal tender notes with key national celebrations or anniversaries to boost feelings of patriotism and unity encourages positive mawkishness that promotes economic growth.