The Effect of Naira Redesign Policy on International Remittance Inflows into Nigerian Households

This research investigates the effect of the Central Bank of Nigeria's naira redesign policy on international remittance inflows into Nigerian households. Remittances from the Nigerian diaspora constitute one of the country's largest sources of foreign exchange, exceeding official development assistance and rivalling FDI inflows in certain years. The 2022-2023 naira redesign exercise created a cash scarcity that fundamentally altered how remittances were received, converted, and utilised by beneficiary households, particularly in rural areas with limited banking infrastructure. The study employs a survey research design with data collected from 130 remittance-receiving households across Imo State, a state known for a large diaspora population in the United States and Europe, using structured questionnaires. Data are analysed using descriptive statistics and paired t-tests comparing remittance utilisation patterns before and after the policy. The theoretical framework is grounded in the economics of remittances and the portfolio choice theory of household finance. The study examines shifts toward digital remittance channels, changes in remittance frequency and volumes, and the impact on household consumption and investment decisions. Findings are anticipated to reveal that the policy accelerated adoption of mobile money and fintech remittance platforms, though temporary liquidity constraints impaired household welfare during the transition. Recommendations are directed at the Central Bank and remittance service providers to coordinate currency reform communications with diaspora communities and strengthen mobile money infrastructure in rural areas. Keywords: remittances, naira redesign, household finance, diaspora, Central Bank of Nigeria