ABSTRACT

The study focused on the effect of the CBN Naira redeisgnation policy on the Nigerian economy. Specifically, the study sought to empirically investigate the perception of Nigerians towards the policy, its impact on the standard of living of Nigerians, its effect on Business performance, as well as it impact on the growth and development of SMEs.

A survey research design was adopted and the population of the study were randomly drawn from individuals and businesses located within the ugbowo axis if Benin city, Edo state. A sample of size of 100 respondents were conveniently selected for the study. The study adopted the use of structured Questionnaires, tailored towards the objectives of the research, in obtaining data and responses from the respondents. A hundred copies of questionnaire was administered and retrieved for analysis. Research questions were raised and hypothesis generated to guide the conduct of the research; and the Data obtained from the respondents was analyzed using Descriptive statistics, mean frequency, Linear Regression models, Analysis of Variance (ANOVA), and Independent t-test through the Statistical package for Social Sciences (SPSS).

Findings obtained from the study indicates that, Nigerians have negative perception of the redesignation policy, the policy negatively impacted on the standard of living of Nigerians, as well as on the business performance. It was also found that the policy exacted a great deal of difficulty on Nigerians in their day-to-day affairs. While the economy witnessed a surge in the number of small business operators particularly during the policy implementation period, who sought to exploit the situation to their advantage.

Based on the findings, the study recommends among other things that government should consider conducting a comprehensive analysis of the possible effects of its policies on its citizens, and the economy at large as his will aid the government in making informed decisions, as well creating possible measures at mitigating the possible challenges that may ensue in its implementation.