NAIRA REDESIGN POLICY ON THE PERFORMANCE OF ENTERPRISES IN THE FEDERAL CAPITAL TERRITORY (FCT), ABUJA

Abstract

The frequent implementation of the Naira redesign policy in Nigeria has raised concerns over its effect on the performance of enterprises, particularly regarding cash accessibility and operational continuity. This study therefore investigated the impact of the Naira redesign policy on the performance of enterprises in the Federal Capital Territory (FCT), Abuja, with specific focus on the dimensions of currency availability and cash withdrawal limits, and their influence on revenue generation and operational efficiency. The study adopted a descriptive survey research design, targeting a population of 637 enterprises across four major commercial markets Wuse, Garki, Life Camp, and Kubwa of which 295 respondents were sampled using a multi-stage sampling technique. Primary data were collected through a structured questionnaire, and the reliability of the instrument was confirmed using Cronbach’s alpha, while content validity was established through expert review. Data analysis was performed using regression analysis with the aid of SPSS version 27 to test the hypothesised relationships. The findings revealed that currency availability significantly increased revenue generation, while cash withdrawal limits positively influenced operational efficiency of enterprises in the FCT. The study concluded that liquidity-related aspects of the Naira redesign policy are critical drivers of enterprise performance, supporting the theoretical framework of the Liquidity Preference Theory. Based on these results, the study recommended that the Central Bank of Nigeria ensure adequate and timely distribution of redesigned currency and review cash withdrawal limits to enhance enterprise operations and revenue outcomes.