BAZE UNIVERSITY.
DEPARTMENT OF MASS COMMUNICATION.
DISSERTATION PROPOSAL
AN ASSESSMENT OF CENTRAL BANK OF NIGERIA’S PUBLIC RELATIONS
STRATEGIES IN HANDLING NAIRA REDESIGN CRISIS IN NIGERIA.
BY
JULIET TARIBOERE MOLOS
BU/22A/PGS/8347
NOVEMBER, 2023
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Table of Contents
1.1 Background to the Study. ...................................................................................................... 1
1.2 Statement of the Problem. ..................................................................................................... 2
1.3 Research Questions. .............................................................................................................. 4
1.4 Objectives of the Study. ........................................................................................................ 4
1.5 Research Propositions. .......................................................................................................... 5
1.6 Significance of the Study. ..................................................................................................... 5
1.8 Scope and Limitations of the Study. ..................................................................................... 6
1.9 Operational Definition of Terms. .......................................................................................... 6
1.10 Research Methods. ............................................................................................................. 8
1.10.1 Introduction .................................................................................................................. 8
1.10.2 Research Design. .......................................................................................................... 8
1.10.3 Population of the Study. ............................................................................................... 9
1.10.4 Sample Size and Sampling Technique. ........................................................................ 9
1.10.5. Types and Sources of Data. ...................................................................................... 10
1.10.6 Data Collection Methods. ........................................................................................... 10
1.10.7 Method of Data Analysis. ......................................................................................... 11
1.10.8 Instruments for Data Collection ..................................................................................... 11
1.10.9 Organization of the Study. .......................................................................................... 11
References. ................................................................................................................................ 14
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1.1 Background to the Study.
Nigeria’s Apex bank, the Central Bank of Nigeria (CBN) On October 26, 2022 embarked
on a monetary policy implementation which involved the redesign of some denominations of the
naira currency. The Central Bank of Nigeria (CBN) announced a move to redesign the currency
(N200, N500, and N1000 notes) and introduce new notes into circulation to replace the old ones.
The policy came into full implementation in February, 2023 (Otitoju, et al 2023). The objectives
of the policy included improving the security features of the currency in order to reduce the rate
of currency forgery, reduce the total amount of money in circulation to reduce inflation, increase
the percentage of money availability in bank volts in order to increase the rate of financial
inclusion. According to the Central Bank of Nigeria (CBN), more than 85% of the money in
circulation is kept outside the vaults of commercial banks, therefore it was necessary to redesign
the naira because it had been so long since the notes had been updated, which is recommended to
be done every 5 to 8 years. The amount of money in circulation has more than doubled, rising from
N1. 46 trillion in December 2015 to N3. 23 trillion in September 2022. Data from the CBN shows
an 11.07% increase in the value of cash kept outside of banks from the N2.54 trillion reported in
a comparable time of 2021 Year-on-Year (Onimisi in Otitoju, 2023).
The redesign of currency has both advantageous and disadvantageous economic effects.
By assisting governments in reducing counterfeiting and being one step ahead of threats, currency
redesigns boost a currency's security (Onimisi in Otitoju et al, 2023). Additionally, it is projected
to strengthen financial inclusion, increase economic growth, and cut cash management expenses.
It will also make it easier for the government to keep an eye on the money supply. Analysts claim
that revamping the naira has reduced tension and quelled fears in Nigeria. By lowering the quantity
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of money stored outside of banks, it will reduce the money stock and decrease the long-term trend
of inflation. The resulting deflationary pressure may lead to interest rate cuts, which will boost
economic activity in the short to medium term, boost aggregate demand, and enhance output
growth. According to analysts, the redesign of the naira, which was put into effect just before the
national elections in 2023, may have made it less attractive to buy votes (Otitoju, 2023).
Donald & Treadwell (2005) opined that public relations is the art of gaining the goodwill
and support of the publics of organisations and it enables organizations all over the world to
maximize profit as well as create a synergy between the organization and its environment in a bid
to foster co-operation and collaboration between these separate entities. In so doing, they make the
public have a sense of belonging and interest in the said organisations. Nwosu cited in Ekunlago
& Akemolkun (2002) notes that public relations are a two-way traffic, serving the public and the
institution as well. To these institutions, public relations creates a favourable image for
organisations. It modifies or changes the way people see an institution to a favourable one by
explaining and mobilizing public opinions and views to the advantage of the institution.
1.2 Statement of the Problem.
Public relations handle negative externalities that emanate from the implementation of the
strategies and policies of organizations and this is known as crisis management. Crisis
management is public relations responsibility. Public relations enable organization to steer its
external environment towards understanding its goals and objectives as well as garnering public
effort and support in the attainment of these objectives and goals. Organisations now go all out to
explain their policies and strategies, ideas and prospects to the public through public relations
outfits (Oyekele, 2020). Coombs (2000), synthesized several definitions and perspectives of the
term “crisis” and defined it as “the perception of an unpredictable event that threatens important
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expectancies of stakeholders and can seriously impact an organisation’s performance and generate
negative outcomes.” The Naira redesign policy had a devastating effect on the Nigerian society.
In fact, it can be termed a crisis as the redesign policy plunged a large section of the
Nigerian populace into hard economic and social conditions that threatened the expectations of the
populace and generated negative outcomes. The crises stemming from the Naira redesign policy
in Nigeria posed significant challenges to the socioeconomic activities and living standards of the
citizens. The implementation of the redesign and swapping of the N200, N500, and N1000
denominations by the Central Bank of Nigeria resulted in divergent views and reactions from the
public. The flaws and mismanagement associated with the policy caused general hardship,
frustration of socioeconomic activities, and a decline in living standards (Nwaezeihenatuoha,
2003). The problems that arose from the Naira redesign policy included scarcity of new currency
notes, leading to difficulty in conducting business transactions and the buying, selling, production,
and exchange of goods and services. Unemployment increased due to layoffs and a lack of job
opportunities, with small-scale industries and businesses going insolvent. The abnormal increase
in prices, especially when buyers presented old currency notes, also contributed to inflationary
trends Akinlo & Odusola (2023). Furthermore, unethical practices by banks, point-of-sale (POS)
operators, and other financial agents, such as hoarding and selling the redesigned notes at
exorbitant prices, have exacerbated the situation (Akinlo & Odusola, 2003).
The implementation of the Naira redesign policy also resulted in long queues and
unmanageable crowds at banks and ATMs, causing inconvenience and frustration for the public
(Eromosele, 2023). Social functions and religious activities were disrupted or postponed due to
the scarcity of new currency notes and the rejection of old ones. The policy threw many citizens
into abject poverty and general hardship, negatively impacting their daily lives and overall well-
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being. People found it difficult to engage in financial transactions as cash which is a predominant
means of exchange in Nigeria became hard to come by due to a number of reasons such as the
CBN’s daily transactions limit, the insufficiency of the redesigned currencies and also the lack of
proper communication from the CBN to the general public, so therefore, this study aims to assess
the public relations policies of the Central Bank of Nigeria in handling the Naira redesign crisis.
1.3 Research Questions.
The study adopts the following questions in a bid to assess the public relations strategies
of the Central Bank of Nigeria in Naira redesign crisis management.
1. What were the public relations strategies the Central Bank of Nigeria adapted in handling
the Naira redesign crisis in Nigeria?
2. How impactful were the public relations strategies of the Central Bank of Nigeria in
handling the Naira redesign crisis in Nigeria?
3. What were the gaps in communication of the Central Bank of Nigeria public relations
strategies for handing the Naira redesign crisis?
4. What are the recommendations and strategies for effective public relations and crisis
management?
1.4 Objectives of the Study.
The aim of the study is to assess the Central Bank of Nigeria’s public relations strategies
in handling Naira redesign crisis in Nigeria. However, the study adopts the following specific
objectives to enhance precision it its research effort:
1. Assess the public relations strategies of the Central Bank of Nigeria in handling the Naira
redesign crisis in Nigeria.
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2. Identify gaps in communication of the Central Bank of Nigeria public relations strategies
for handing the Naira redesign crisis.
3. Assess the impact of the public relations strategies of the Central Bank of Nigeria in
handling the Naira redesign crisis in Nigeria.
4. Propose recommendations and strategies for effective public relations and crisis
management.
1.5 Research Propositions.
1. The public relations strategies employed by the Central Bank of Nigeria in handling the
Naira redesign crisis were aimed at maintaining transparency, addressing public concerns,
and restoring trust in the currency management system.
2. The impact of the public relations strategies implemented by the Central Bank of Nigeria
in handling the Naira redesign crisis varied among different stakeholder groups, with
varying levels of effectiveness in addressing public concerns and restoring confidence in
the currency management system.
3. There were significant gaps in communication during the Central Bank of Nigeria's public
relations strategies for handling the Naira redesign crisis, leading to misinformation,
confusion, and a lack of understanding among the public.
4. Recommendations and strategies for effective public relations and crisis management.
1.6 Significance of the Study.
The study provides significance from a practical as well as a theoretical perspective.
Practically, the study will provide public relations strategists and managers with public relations
framework and strategies to manage crisis especially in the financial sector and public institutions.
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It would help identify and evaluate the communication and crisis management strategies
that can be employed by the government, central bank, and financial institutions during crisis
management and propose recommendations and strategies for effective public relations and crisis
management, including stakeholder engagement plans, media relations strategies, and crisis
communication protocols, to strengthen the resilience of the currency management system and
rebuild public trust in times of crises.
1.8 Scope and Limitations of the Study.
The scope of the study shall encompass the academic discourse surrounding public
relations as an academic discipline as well as an art, that is a field of practice. The institutional
scope of this study shall cover the apex bank in Nigeria, the Central Bank of Nigeria which is in
charge of directing government’s monetary policies of which currency (Naira) redesign is an
instrument of monetary policy framework. Also, the naira redesign policy which was formulated
in 2022 and came into implementation toward the end of 2022 and into 2023 will be core focus of
this study, as this study will access the effectiveness of the public relations strategies deployed by
the Central Bank of Nigeria during the time of the policy implementation.
The limitations of the study are not yet fully form but anticipatory, time, access to data,
favourable disposition of the respondents in the scope of the study are expected. However, the
study will envisage steps to tackle these limitations as they occur.
1.9 Operational Definition of Terms.
Public Relations: Public relations is a field of study and practice which avails organizations and
institutions to convey its objectives and goals to its public. It also provides the organization with
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tools to manage its image, push its agenda as well as inform its publics on its activities in a bid to
condition the mindset and reaction of the public towards the organization.
Naira Redesign: A monetary policy of the apex bank in Nigeria, the Central Bank of Nigeria
designed to deal with issues arising from the currency of the naira in the country. It involves
changing of the color, texture and features of naira notes. This policy affected the upper
denominations of the naira which are the N200, N500 and the N1000. It is undergone to achieve
certain objectives such as dealing with inflation, counterfeiting, fraud, damaged notes as well as
enhancing economic growth.
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1.10 Research Methods.
1.10.1 Introduction
Research methodology defines the techniques and frameworks that guide the collection,
analysis and interpretation of data to ensure a proper understanding of the phenomenon of study.
The methodology of this study includes; the research design, population of the study, sampling
and sampling technique, research instrument, and methods of data analysis.
1.10.2 Research Design.
Research methodology refers to the systematic and scientific approach used by researchers
to conduct a study and find answers to defined research questions or problems. It encompasses the
overall research design, data collection methods, analysis techniques, ethical considerations, and
reporting approach used in a study (Leedy & Ormrod, 2016). The research design provides an
overall plan and structure for the study. Common types of research designs include experimental,
non-experimental, survey, case study, and mixed methods designs (Creswell, 2014). The study
will use a survey design methodology to access the public relations strategies of the Central Bank
of Nigeria in handling the Naira redesign crisis. The survey research design is appropriate as it is
cost-effective, time-efficient, and suitable for studying large samples. Furthermore, surveys are a
reliable method of data collection as they use standardized questionnaires, reducing the
subjectivity of responses. Surveys refer to investigating a phenomenon or events that occur at the
time of the research and connected with same problem situation that is felt over a wide area by a
large population. Survey research aims to extract information which would be processed into data
from a population of interest utilizing tools such as questionnaire or interview instruments and
further subjecting such data to statistical analysis for the purpose of drawing conclusions. Survey
is a groundbreaking discovery in the social and management sciences disciplines.
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The justification for adopting the survey research design is to enable an in depth
understanding of perspective of the public on the impact the Central Bank’s public relations
strategies employed to manage the naira redesign crisis. The survey research affords the
opportunity for respondents to be sampled scientifically and objectively provide data for making
inferences on public relations activities of the Central Bank of Nigeria in managing the naira
redesign crisis. This study will be within the scope of the Naira redesign policy of the Central Bank
as it is a crisis point. Survey design method avails us the opportunity to obtain relevant information
from a broad spectrum of respondents in the same scope of the study.
1.10.3 Population of the Study.
According to Schutt (1999) research population is the sum total of all the elements of units
of analysis which a study is interested in. The population of this study will include all residents of
the Federal Capital Territory Abuja. The population of the study is 3, 067, 500 according to
macrotrend site, based off of National Bureau of Statistics 2016 projections.
1.10.4 Sample Size and Sampling Technique.
The study utilized Taro Yamane formula in determining its sample size.
n = N/ 1+ Ne2
Where N = Population Size
n = sample size
e = 0.05.
N = 3, 840, 000 (Source: Macrotrends. www.macrotrends.net)
n = 3, 840, 00 / 1 + 3, 840, 000 (0.05)2
n = 3, 840, 000 / 9601
n = 399.
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Also, the study will utilize simple random sampling as its sampling technique. This gives
every element in the population of the study an equal opportunity to be sampled thereby
eliminating bias and room for non-probabilistic sampling errors.
1.10.5. Types and Sources of Data.
The types of data for this study will include the following;
Primary data: This is data for the study that was obtained directly by the study through interaction
with the respondents and phenomenon under examination. This would include both quantitative
and qualitative data that will be subjected to various analytical techniques to obtain results which
would provide a better understanding of the scope of the study.
Secondary data: This is data that was derived from other works, sources and repositories
of information such as journals, books, articles, blogs, online sources and newspaper publications.
For a robust and comprehensive perspective, the research was supported by secondary data which
would be used to support the primary data that will be obtained for the study.
1.10.6 Data Collection Methods.
Data will be collect using a self-administered semi structured questionnaire and interviews.
The questionnaire will comprise of two sections. The first part will contain demographic questions,
while the second part will contain questions related to Central Bank of Nigeria’s public relation
strategies in handling the naira crisis. The questionnaire will use a Likert scale format consisting
of 3-point scales, ranging from agree to disagree. Also, the interview will be conducted by the
researcher with questions that are relevant to the scope of the study. The interview will undertaken
in a bid to elicit unrestricted responses from the respondents and give a deeper perspective to the
public relations strategies of the Central bank in managing the naira redesign crises.
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1.10.7 Method of Data Analysis.
The data collected from the survey questionnaire will be analyzed using descriptive and
inferential statistics. Descriptive statistical methods such as frequency distributions and simple
percentages were used to describe the study's demographic characteristics and also statistically
represent the responses from the surveys. Also, the interview data will be treated with qualitative
techniques. The interviewees will be sampled also from the population of the study and the data
obtained was analyzed with content analysis with the purpose of identifying themes and patterns
in the responses to the interview questions.
1.10.8 Instruments for Data Collection
The study will utilize questionnaires as the instrument for data collection. The items will
be designed to correspond with the research questions, and research objective as outlined in chapter
one.
1.10.9 Organization of the Study.
ORGANISATION OF THE STUDY
Below is the proposed organization format of this research work:
I.
Title
II.
Certification
III.
Dedication
IV.
Acknowledgment
V.
Table of content
VI.
Abstract
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Chapter One: Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Research questions
1.4 Objectives of the study
1.5 Propositions of the study
1.6 Significance of the study
1.7 Scope and Limitations of the study
1.8 Operational Definition of Terms
Chapter Two: Literature Review and Theoretical Framework
2.1 Literature review
2.2 Theoretical Framework
Chapter Three: Methodology
3.1 Research design
3.2 Population of the study
3.3 Sample size
3.4 Source of data
3.6 Instrument of data collection
3.7 Method of data analysis
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Chapter Four: Data Presentation and Analysis
4.1 Data presentation, discussion and analysis
4.2 Interpretation of findings
Chapter Five: Conclusion, Summary and Recommendations
5.1 Summary of major findings
5.2 Conclusion drawn from the findings.
5.3 Recommendations.
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References.
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Output and Inflation. Applied Economics 691-703
Coombs, T. (2000). Crisis management: advantages of a relationship perspective. Public
Relations as Relationship Management. Hillsdale, NJ: Lawrence Erlbaum.
Creswell, J. W. (2014). Research design: Qualitative, quantitative and mixed methods approaches.
Sage Publications.
Donald, T. &Treadwell, J.B. (2005). Public relations writing: Principles in Practice. London:
Sage Publications.
Ekunalago, T. & Akemolkun, W. (2002). Interactive public relations.: Taymos Communications
Abuja.
Eromosele, E. (2023). Naira redesign, queues and quest for a new Nigeria. The Guardian,
17 February.
Heale, R., & Twycross, A. (2015). Validity and reliability in quantitative studies. Evidence-based
nursing, 18(3), 66-67.
Macrotrensds (2023). https://www.macrotrends.net/countries/NGA/nigeria/population
Nwaezeihenatuoha, P. E. (2023). Public Opinion on Influence of Naira Redesign on
Socioeconomic Activities and Living Standard in Nigeria. IMSU Journal of
Communication Studies. Vol 7(1)
Otitoju, M. A., Sunday, G. A., Abiola, I. B., & Abudu, W. A. (2023). Impact of Currency ReDesign on Nigeria Economy 2022 – 2023. (2023). International Journal of Social Science
and Humanities Research (online) Vol. 11, Issue 3, pp: (50-56).
Oyeleke, A. (2020). Public Relations and Crisis Management in Federal Teaching
Hospital Abakaliki and University of Nigeria Teaching Hospital, Enugu. Ebonyi State
University Journal of Mass Communication. Vol. 7, Issue 1, pp. 194-203
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