A country may redesign its bank notes in order to achieve certain goals. These may include enhancing security of the notes, preventing counterfeiting, protection of the nation’s common legacy, managing the quantity of money in circulation, and reducing the cost of currency management. This study examines the correlation between the recent Naira redesign policy and inflationary trends in Nigeria. The work highlights the unintended consequences of abrupt currency redesign and underscores the need for strategic planning and implementation to prevent inflationary shocks and unintended and adverse consequences on the economy. Using monthly data of one year before and one year after the implementation of the redesign sourced from the Central Bank of Nigeria statistical Bulletin and the National Bureau of statistics statistical Bulletin, the study assesses impact of the policy and its significant influence on the level of inflation in the country. Employing the statistical tool of Pearson moment correlation analysis, the findings suggest a strong positive relationship between the Naira redesign policy and rising inflationary rates, primarily driven by liquidity constraints, supply chain disruption, and speculative behaviours. The study recommends a phased approach to currency redesign in the future to mitigate the adverse economic impact