Effect of naira redesign policy on welfare of civil servants: a study of Abakaliki metropolis

Abstract

Public policy such as currency redesign produce far reaching effects especially on citizens’ welfare. The recent experience with currency redesign in Nigeria left numerous wounds. The research investigated the effect of naira redesign policy on the welfare of civil servants, a study of Abakaliki metropolis. The population of the study were the staff of selected Ministries, Departments and Agencies (MDAs) in Ebonyi State. The study adopted simple random sampling to select 115 participants which included Directors, Executive Officers, Executive Assistants, Clerical and General Staff .The researcher utilized primary data sourced from structured questionnaire and employed percentage analysis and the Pearson Likelihood Ratio to analyze the data. The study revealed that the naira redesign policy brought significant costs, such as the high cost of transportation, high cost of food prices, home and office supplies and thus reduced the financial welfare of civil servants. It was also indicated that the naira redesign policy brought about psychological trauma due to inconveniences resulting from lack of access to new naira notes; the time lost due to queuing on ATM centres resulted to inconveniences and social discomfort on civil servants. Based on the findings, the study recommended that government should devise means of addressing the various identified challenges facing the naira redesign policy; this will help to mitigate the likely effect of the withdrawal of the old notes from circulation on the welfare of civil servants. The CBN should put mechanisms in place to achieve the prospects of the naira redesign policy.