Trouble with new fiscal policy and new fiat note in Nigeria.

Money laundering and embezzlement have been one of the biggest problems in most developing countries and this has made their developing process decrease down the marginal line.

Each country's government has made a different policy to reduce these activities of laundering and embezzlement.

Nigeria as a case study.

Recently, the Nigerian government has made a new policy to combat the corruption that has eaten deep into the root of the country's development.

This new policy was set to help control the circulation of the flow of money in the system. Aishah Ahmad, deputy governor, financial system stability directorate, CBN (Central Bank of Nigeria), spoke while briefing the house of representatives on the cashless policy and the new withdrawal limits.

The cashless policy was introduced in the year 2012 and the aim was to allow more citizens to fully embrace alternative electronic payment platforms like the bank app and ensure further development and expansion of financial access points.

Later a daily limit of 500,000 nairas ($690) to 1 million nairas ($1380) was set for individual and business owners. This policy has helped to fight daylight robbery, reduce the movement of huge amounts of money by individuals and also help the government track the inflow and outflow of the citizens' expenditures.

Even with the new policy, it has little effect on the huge amount that is contiguously stolen from the government pulse. Many would wonder how money can be stolen from the government. 2022 the CBN deputy government Ahmad announced a new policy that will take effect in January 2023. This policy limits the usage of funds and transactions to 20,000 Naira ($27)daily for individuals. The highest amount an individual has access to is 20,000 Naira. Now you would wonder how a person would build a house on $27 daily.

Currently, citizens are avoiding the usage of banks but this policy was passed into law to reduce laundering and embezzlement as they claim.

Trouble with the new Naira Note

The president and the president of the Central Bank of Nigeria have decided to change the look of the Naira note. It was said that due to the presidential election, many political parties have harbored lots of Naira note that will be used to bribe citizens to get votes for their party member. The creation of new notes was the best solution they could come up with. The previous note looks the same as the new note but the color differs.

According to punch news

The Deputy Governor, of Financial System Stability, Central Bank of Nigeria, Aisha Ahmad, has told the House of Representatives that she does not know how many notes were printed in the recent redesign of the naira.
The CBN had recently introduced new N200, N500, and N1,000 notes, with concerns that the newly designed denominations are scarce in circulation.
Ahmad who represented the CBN governor, Godwin Emefiele, while responding to questions from members of the House, said she could not ascertain the exact amount and the number of notes printed. The CBN deputy governor said she did not want to give a wrong figure.
The CBN deputy governor later said a total of 500 million mints were ordered.

Since the CBN doesn't know the total amount of minted notes, many people have capitalized on this and a lot of fake notes are in circulation in the country. Citizens can't differentiate between the new note and the fake one which has led many into trouble. Citizens of the country now reject the new note, they don't collect it at POS stands or at banks. People refuse to use the new note to run their businesses. The new note has caused a lot of trouble in the country and the citizens are waiting for a response from the president and the president of the Central bank.

But this leaves another question unanswered.

If the government wants a cashless society, why ban cryptocurrency in the country?