Assessment of Central Bank of Nigeria(CBN) Media Campaign Against Naira Abuse Amongst Nigerians in 2024
Chapter One
Objectives of the Study
The main purpose of this study is to assess the Central Bank of Nigeria’s media campaign against naira abuse amongst Nigerians in 2024. Specifically, the study will;
i. Determine the extent of naira abuse in Nigeria.
ii. Determine the factors influencing naira abuse in Nigeria.
iii. Determine the media campaign’s effectiveness in promoting respectful handling of the naira.
iv. Determine the challenges faced in implementing a media campaign against naira abuse.
CHAPTER TWO
REVIEW OF LITERATURE
INTRODUCTION
Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
Precisely, the chapter will be considered in three sub-headings:
CONCEPTUAL FRAMEWORK
History of Central Bank of Nigeria
The period 1892 – 1952, there was an enquiry by the then colonial administration to investigate banking practice in Nigeria. The G. D. Paton Report which emanated from the enquiry was the basis for the first Banking Ordinance of 1952. The ordinance was designed to ensure orderly commercial banking and to prevent the establishment of unviable banks(CBN, 2021). A draft legislation for the establishment of Central Bank of Nigeria was presented to the House of Representatives in March, 1958. The Act was fully implemented on 1 July, 1959 when the Central Bank of Nigeria came into full operations.
Central Bank Act, 1958
The Central Bank Act, 1958 (as amended) and the Banking Decree 1969 (as amended) constituted the legal framework within which the CBN operates and regulates banks. The wide range of economic liberalization and deregulation measures following the adoption, in 1986, of a Structural Adjustment Programme (SAP) resulted in the emergence of more banks and other financial intermediaries. The Banks and Other Financial Institutions (BOFI) Decrees 24 and 25 of 1991, which repealed the Banking Decree 1969 and all its amendments, were, therefore, enacted to strengthen and extend the powers of CBN to cover the new institutions in order to enhance the effectiveness of monetary policy, regulation and supervision of banks as well as non-banking financial institutions (Ayeni & Nwaoboli, 2023). Unfortunately in 1997, the Federal Government of Nigeria enacted the CBN (Amendment Decree No. 3 and BOFI (Amended)] Decree No. 4 in 1997 to remove completely the limited autonomy which the Bank enjoyed since 1991.
THE 1997 AMENDMENTS
The 1997 amendments brought the CBN back under the supervision of the Ministry of Finance. The Decree made CBN directly responsible to the Minister of Finance with respect to the supervision and control of bank and other financial institutions, while extending the supervisory role of the bank to other specialized Banks and Financial Institutions (Ayeni & Nwaoboli, 2023). The amendment placed enormous powers on the Ministry of Finance while leaving the CBN with a subjugated role in the monitoring of the financial institutions with little room for the Bank to exercise discretionary powers.
THE 1998 AMENDMENTS
The CBN (Amendment) Decree No. 37 of 1998 which repealed the CBN (Amended) Decree No. 3 of 1997. The Decree provided a measure of operational autonomy for the CBN to carry out its traditional functions and enhances its versatility.
THE CBN ACT, 2007
The current legal framework within which the CBN operates is the CBN Act of 2007 which repealed the CBN Act of 1991 and all its amendments. The Act provides that the CBN shall be a fully autonomous body in the discharge of its functions under the Act and the Banks and Other Financial Institutions Act with the objective of promoting stability and continuity in economic management (Ayeni & Nwaoboli, 2023). In line with this, the Act widened the objects of the CBN to include ensuring monetary and price stability as well as rendering economic advice to the Federal Government (Ayeni & Nwaoboli, 2023).
History of Nigeria Currency
During the pre-colonial era, different cultures used a variety of items as means of exchange. These included cowries, manilas, beads, bottles and salt amongst others. The first major currency issue in Nigeria was undertaken sequel to the colonial ordinance of 1880 which introduced the Shillings and Pence as the legal tender currency in British West Africa (Ayeni & Nwaoboli, 2023). The units of coins managed by the Bank of England were one shilling, one penny, ½ penny and 1/10 penny and were distributed by a private bank, the Bank for British West Africa till 1912 (Ayeni & Nwaoboli, 2023). From 1912 to 1959, the West African Currency Board (WACB) issued the first set of banknotes (insert hyperlink) and coins in Nigeria, Ghana, Sierra Leone and the Gambia. The highest banknote denomination was one pound, while the one shilling coin was the highest coin denomination. On 1st July, 1959 the Central Bank of Nigeria (CBN) issued Nigerian currency banknotes, while the WACB-issued banknotes and coins were withdrawn. On the 1st of July 1962, the currency was changed to reflect the country‟s republican status. The banknotes which bore the inscription, ‟FEDERATION OF NIGERIA„, now had, „FEDERAL REPUBLIC OF NIGERIA‟, inscribed at the top. The notes were again changed in 1968 following the misuse of the currency banknotes during the civil war. Sequel to the decision by the government to change from the metric to decimal, the name of the Nigerian currency was changed in January, 1973. The major unit of currency which used to be £1 ceased to exist and the one naira which was equivalent to ten shillings became the major unit, while the minor unit was called the kobo; hundred of which made one naira. On 11th February 1977, a new banknote with the value of twenty naira (₦20) was issued. It was the highest denomination introduced at the time as a result of the growth of the economy; the preference for cash transactions and the need for convenience.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried out to assess central bank of Nigeria media campaign against Naira abuse amongst Nigerians in 2024 using Gwagwalada, Abuja as a case study. Residents in Gwagwalada, Abuja form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of five hundred (500) questionnaires were administered to respondents of which only four hundred (400) were returned and validated. For this study a total of 400 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
SUMMARY
In this study, our focus was to assess central bank of Nigeria media campaign against naira abuse amongst Nigerians in 2024. The study specifically was aimed at highlighting the extent of naira abuse in Nigeria, determine the factors influencing naira abuse in Nigeria, determine the effectiveness of the media campaign in promoting respectful handling of the naira and determine the challenges faced in implementing media campaign against naira abuse. A total of 400 responses were validated from the enrolled participants where all respondent are drawn from residents in Gwagwalada, Abuja.
CONCLUSION
Conclusively, based on the evidence obtained in this study, the extent of Naira abuse prevalent in Nigeria is high. In addition the study found that the factors influencing naira abuse in Nigeria includes, lack of public awareness, unregulated financial systems, cultural factors and inadequate security features. Furthermore, the study establish that the media campaign is very effective in promoting respectful handling of the naira. Lastly, the study revealed that the challenges faced in implementing the media campaign against naira abuse includes, misinformation, coordination among stakeholders, political considerations and funding and resources.
RECOMMENDATION
Based on the responses obtained, the researcher proffers the following recommendations:
- The CBN should develop more targeted outreach programs that focus on educating specific demographic groups, such as traders, market women, and transportation workers, who are often at the frontline of handling cash. These programs could include on-ground seminars, workshops, and partnerships with local associations to ensure a deeper understanding of the importance of preserving the naira and the consequences of abuse.
- The CBN should create engaging and informative content, including short videos, infographics, and social media challenges that can go viral, to spread awareness about naira abuse. Collaborating with influencers and content creators could amplify the campaign’s reach and effectiveness.
- To complement the media campaign, the CBN should collaborate with law enforcement agencies to strengthen monitoring and enforcement mechanisms against naira abuse. This could include setting up a dedicated hotline for reporting abuse, increasing surveillance in areas prone to violations, and conducting regular inspections. Additionally, publicizing the penalties for naira abuse through the campaign can act as a deterrent and reinforce the seriousness of the offense.
REFERENCES
- Adegboyega, K. (2020). Social media, cultural commodification and the promotion of synthetic values in Nigeria. In E. S. Asemah, D. O. Ekhareafo & T. Santas (Ed.). Discourses on Communication and Media Studies in Contemporary Society (pp. 291-300), Jos University Press
- Adeolu, O. (2019). Currency Management in Nigeria: The Role of the Central Bank. Journal of Monetary Economics, 12(3), 45-67.
- Adesina, A. (2019). Enforcement Challenges in the Campaign Against Naira Abuse. Nigerian Journal of Legal Studies, 10(2), 58-72.
- Adewale, T. (2020). Economic Pressures and the Persistence of Naira Abuse in Nigeria. African Economic Review, 14(3), 33-47.
- Aguebor, D.(2021). The coverage of new CBN policy on redesigned naira note by select mainstream newspapers in Nigeria.
- Ajayi, A. (2023). The impact of currency note quality on Naira abuse. Journal of Nigerian Economics, 15(2), 45-59.
- Anaeto, K. C., Onabanjo, O. O., &Osifeso, J. B. (2008). The impact of advertising on consumer buying behavior. European Journal of Scientific Research, 24(1), 121-132.
- Ayeni, A. A. & Nwaoboli, E. P. (2023). Media managers‟ perceptions of the impacts Central Bank of Nigeria (CBN). (2020). Counterfeiting and Currency Management: Challenges in Nigeria. Annual Report. Retrieved from https://www.cbn.gov.ng.
- Central Bank of Nigeria (CBN). (2020). Security Features on Nigerian Banknotes. Retrieved from https://www.cbn.gov.ng.
