In December 2022, the Nigerian media space was swimming with reports that captured the diverse reactions of Nigerians to the Central Bank of Nigeria’s (CBN) Naira Redesign Policy. These reports highlighted frustration among traders, concerns about fake currency, and apprehensions over limited circulation of the new notes. Following the public feedback, we revisited the topic to provide a deeper analysis of the policy’s impact and consulted with Olumide Orekoya, an experienced investment banker, to share his insights and practical advice for businesses and consumers.
The Naira Redesign Policy, introduced by the CBN in November 2022, aims to curb inflation, combat counterfeiting, and promote a cashless economy. It replaces old currency notes with redesigned versions and enforces stricter cash withdrawal limits to encourage electronic transactions. According to Orekoya, the redesign is not just about aesthetics; it is a strategic move to strengthen monetary control. With over 80% of Nigeria’s cash circulating outside the banking system, Orekoya notes that the policy compels more money into formal banking structures, enabling better oversight and economic regulation.
Orekoya’s financial expertise stems from an illustrious career at Standard Bank Group, Africa’s leading financial services provider. Rising rapidly from Analyst to Associate, he has managed transactions worth over $2 billion and led groundbreaking projects across seven countries. His accomplishments include orchestrating a $300 million portfolio restructuring—the largest real estate lending deal in Sub-Saharan Africa—which generated $1.5 million in fees and $700,000 in ancillary income. These achievements position him as a leading voice in understanding the far-reaching implications of the Naira redesign.
While the policy’s goals are clear, its implementation has posed challenges. Orekoya acknowledges disruptions caused by limited availability of the new notes. SMEs, which heavily depend on cash transactions, face difficulties transitioning to electronic payments, and consumers have struggled with long ATM queues and restricted withdrawals. However, he sees this transition as an opportunity for businesses to modernize. He highlights the long-term benefits of efficiency, transparency, and security that come with adopting digital payment systems.
Reflecting on his innovative work in financial infrastructure, including championing Nigeria’s first data center in the Eko Atlantic Free-zone Area and structuring a $43 million deal for the first Mini-LNG gas plant in Northern Nigeria, Orekoya believes that businesses must adapt to technological changes to remain competitive. Digital payments, he argues, are not just a trend but the future of commerce in Nigeria.
Orekoya also emphasizes the need for stronger implementation strategies. He recommends that the CBN work closely with commercial banks to ensure adequate distribution of new notes and resolve technical issues with digital platforms. Drawing from his consulting experience at CIUCI, where he reduced patient waiting times through electronic health record systems, he stresses the importance of building trust in electronic systems to drive adoption.
While acknowledging the difficulties caused by the transition, Orekoya maintains an optimistic outlook. He believes that reduced inflation, improved monetary controls, and better access to credit through banks will ultimately spur economic growth. As a top-performing student, graduating in the top 10% of his class with a 4.53 GPA, and earning awards like the Beyond Excellence Award at Standard Bank, Orekoya’s analytical approach underscores his confidence in the policy’s long-term success.
The Naira Redesign Policy is a bold step toward modernizing Nigeria’s financial system, but its success depends on effective implementation and stakeholder cooperation. Orekoya concludes that the temporary pain of transition will lay the foundation for a more resilient and efficient economy. Drawing on his CFA qualifications and deep experience in financial structuring, he encourages Nigerians to embrace digital transformation and remain committed to financial growth despite short-term challenges.
