1.0 chapter one

introduction

1.1 Background to the Study

On October 26, 2022, the Central Bank of Nigeria (CBN) unveiled a new plan to redesign the 200, 500, and 1000 denomination banknotes—the three largest in the country. New notes featuring improved security measures and a variety of colours went into circulation on December 15, 2022 (CBN, 2022). The Apex Bank's decision to demonetize the old notes by February 10, 2023, and only distribute a specific quantity of the new notes, resulted in an unprecedented cash shortage (Adegboyega, 2023). It was particularly difficult for the impoverished, unbanked, and illiterate segments of the populace to complete transactions via e-banking channels since Nigeria lacked the necessary infrastructure for a cashless economy to flourish. Nigerians responded as a result to the new programme.

A section of the country's political elite voiced indignation, alleging that the government was using the CBN as an attack dog to bankrupt politicians before of the national elections scheduled for February and March of 2023. The strategy was designed, planned, and implemented so swiftly that many economists predicted it would have a catastrophic effect on Nigeria's economy. Many others who thought the campaign was unnecessary attacked it for trivial reasons, such as thinking that the new notes were an only “recolored” copy of the old ones rather than “redesigned,” which is a common occurrence in Nigerian public discourse (Nwanma, 2023).

Reducing vote buying is one of the possible implications of currency redesign on the election process. Vote buying is a phenomena that has become common in Nigerian elections, where candidates and their backers use money to sway the decisions of voters. Vote buying casts doubt on the validity of election results and compromises the electoral process's credibility and integrity. Since there will be fewer of these new banknotes in circulation, they will be harder to counterfeit, and they will be easier to track—as demonstrated by the arrests that occurred on election day in certain regions of the nation—political actors may find it more difficult to engage in vote-buying. In Nigerian politics, vote-buying is a regular practice, especially during elections. This type of electoral misconduct entails exchanging gifts or cash for votes (Adewumi, 2018). Vote buying undermines the integrity of the electoral process, threatens the legitimacy of elected officials, and denies citizens their right to a free and fair election (Omodia, 2016). In Nigeria, vote buying takes place in municipal and national elections alike. It is frequently used by political parties and candidates to sway people and win elections (Nwankwo, 2019). A variety of methods, such as direct monetary payments, the provision of goods and services, and assurances of future benefits, can be used to purchase votes (Olugbenga, 2016). Since it is frequently carried out in secret and the beneficiaries are frequently reluctant to report it, it is challenging to identify and prosecute. Vote buying must therefore be addressed in a comprehensive and multidimensional manner. There is a chance to solve vote buying in Nigeria with the redesign of the Naira notes. The new banknotes are harder to counterfeit because they have additional security measures and design components. This might make it harder for politicians and those who support them to obtain large sums of money or to create and disperse counterfeit money in order to purchase votes (Ihenacho, 2020). Additionally, the revamp may make it simpler for law enforcement to identify and pursue vote-buying instances. In addition, the plan attempts to discourage the increasing ransom payments for kidnappings, which are frequently financed by cash, and to syphon off cash from the banking industry, which is frequently used to buy votes. These actions may restrict the amount of money available for vote buying and increase the difficulty for politicians to carry out this tactic. Not all of the ramifications of the currency redesign for preventing vote buying have been thoroughly investigated. This study seeks to fill this gap by Assessment Of The Impact Of Naira Redesign On Electoral Processes In Nigeria (A Case Study Of 2023 General Election)

1.2 STATEMENT OF PROBLEM

The Nigerian federal government implemented a policy by the central bank of Nigeria ahead of the 2023 elections in response to electoral malpractice and voting manipulation. The Naira redesign policy was the name of it. Combating voting fraud and other election anomalies that may be funded was the primary goal of the policy. Due to the policy's relative failure, Nigerians experienced more suffering at this time .furthermore the redesign of the Naira, Nigeria's national currency, was a significant policy intervention implemented by the Central Bank of Nigeria (CBN) in the lead-up to the 2023 general elections. This currency redesign aimed to address issues such as vote buying and the hoarding of cash. However, the timing and execution of this policy coincided with the electoral period, raising concerns about its impact on the electoral process. The central problem is to determine how the Naira redesign influenced various aspects of the 2023 elections in Nigeria. This includes understanding whether the policy had any effects on voter behavior, election financing, political campaigning, and the overall integrity of the electoral process. The redesign might have had multiple repercussions, including the potential for creating disruptions in the availability of cash, affecting voters’ ability to participate, and influencing the dynamics of electoral campaigns. There is limited empirical research on how the Naira redesign specifically affected voter turnout and behavior in 2023 elections. Previous studies may not have adequateltely captured how voters' access to cash influenced their participation in the 2023 elections. While the redesign aimed to curb corruption, there is limited research on whether it effectively reduced corrupt practices related to cash transactions during elections or inadvertently introduced new challenge.  It is to this the study centers An Assessment of the Impact of Naira Redesign on Electoral Processes in Nigeria.

1.3 OBJECTIVES OF THE STUDY

The major aim of the study is Assessment of the Impact of Naira Redesign on Electoral Processes in Nigeria. Other specific objectives of the study include

1) To asses the impact of Currency Redesign on Electoral process and Integrity in 2023 elections

2) To examine the impact of Naira design on Voting buying during the 2023 general elections in Nigeria

3) To examine the political dimension and reasons for Naira redesign during the 2023 general elections

4) To outline the reasons for the failure of Naira design during the 2023 general elections in Nigeria

1.4 RESEARCH QUESTIONS

1)What is the impact of Currency Redesign on Electoral process and Integrity in 2023 elections?

2) What is the impact of Naira design on Voting buying during the 2023 general elections in Nigeria?

3) What is the political dimension and reasons for Naira redesign during the 2023 general elections?

4) What are the reasons for the failure of Naira design during the 2023 general elections in Nigeria?

1.5 Hypothesis

Ho1: There is no significant impact of Naira redesign on Electoral process of the 2023 general Elections in Nigeria

1.6 Significance of the study

The study will give various insights into the various implications the introduction of the Naira design will have on Electoral process of Nigeria in the 2023 general elections. Various challenges and prospects identified in the study will also enable various stakeholders to tackle these challenges effectively by making policies that will address them and Fight against election malpractice in Further elections.

1.7 Scope of the study

The Study Will Be Delimited to an assessment of the impact of naira redesign on electoral processes in nigeria (a case study of 2023 general election in Abuja)

1.8 Organization of the study

The study will be divided into five chapters. The first chapter will contain the introduction,  the second chapter will deal with relevant studies found in the literature and that are related to the study. The third chapter will deal with research methodology. Fourth chapter will deal with the analysis and Finally, chapters five will contain the summary, conclusions and recommendations which are derived from this study.

1.9 Limitation of the study

The researcher was faced with the following constraints in carrying out this study:

Time: The time within the researcher is too short to carry on the detail study on this topic.

Resources: Another constraint of the researcher is financial resources to carry on the detail study of this topic.

Data: Another limitation to this study will be lack of data to make valid study on the research problem.

1.10 Operational definition of terms

Naira redesign: The naira redesign policy aims to improve Nigeria's monetary policy, promote cashless transactions, and enhance the naira's credibility

Electoral processes: An electoral system or voting system is a set of rules that determine how elections and referendums are conducted and how their results are determined