POLITICAL ECONOMY PERSPECTIVE OF THE EFFECTIVENESS OF NAIRA REDESIGN POLICY ON BANDITRY IN LAPAI LOCAL GOVERNMENT AREA, NIGER STATE

Abstract

The study examined the effectiveness of the Naira redesign policy on banditry in the Lapai Local Government Area of Niger State. In terms of methodology, primary data was used for this study. The study used a synthesis of financial intermediation theory and frustration-aggression theory as its theoretical framework. The analytic techniques for this study were descriptive statistics, frequencies and percentages. The descriptive statistics and percentages were used to determine the perception and extent of effectiveness of the Naira redesign on banditry in the study area. The chi-square test was also used to test for the hypothesis by examining the effectiveness of the relationship between Naira redesign and banditry in the study area. The study found that the
newly designed notes led to short-term cash shortages that affected the bandits’ activities in the study area. The removal of the old notes rendered stores of currency held by bandits in their forest hideouts useless. The redesigned Naira notes made it harder for bandits to hoard ill-gotten cash in the area. The redesigned Naira notes curtailed the activities of bandits in the study area. It was also established that the Naira redesign was further effective in curbing banditry in Lapai local government of Niger State. The study recommends, therefore, the need for the government to ensure robust monetary tightening for a sustainable period. This can permanently sustain a cashless economy by the Central Bank of Nigeria (CBN), and also curb banditry. There is a need for greater political will to mobilize financial and human resources to fund disarmament and deradicalization programmes to curtail the challenges of banditry.