The World Bank has warned the newly redesigned naira which went into circulation last week may have a negative effect on economic activity, especially for poor Nigerians due to its timing and short transition period.
The World Bank, in its report, however, says the new policy would negatively affect small businesses, especially those who have day-to-day cash transactions.
The report says while periodic currency redesigns are normal internationally and the naira does appear to be due for it since naira notes have been redesigned for two decades, the timing of and short transition period for this demonetization may have negative impacts on economic activity, in particular for the poorest households.