Cashless Policy Frustrates Nigerians

If one is to conduct a poll today in Nigeria, the leading crisis may be the Naira redesign policy of the Central Bank of Nigeria that has left millions ‘pennyless,’ and unable to buy or sell merchandise of all sorts, most especially fresh food in open markets, and other services.  Pennyless, by the way, does not mean they do not have money in their bank accounts. They do not have access to the money in their bank accounts.

The Nigerian apex bank, and the present administration of Muhammadu Buhari announced their intention to issue redesigned notes for the three highest denominations of 1000, 500 and 200 Naira notes on November 22 of 2022 and gave a deadline for a swap of the old notes for January 31, 2023.  What further complicates the issue is that the new notes were not introduced immediately for a gradual swap following the announcement.  Most people said they first saw the new notes two weeks before the deadline for using the old notes.

In addition, the policy says people have been restricted to a daily cash withdrawal that should not exceed 20,000 either from the bank halls, or ATM.  

For almost a week now, most ATMs have run dry while vendors everywhere have not yet adjusted to using POS to receive direct deposits from customers bank cards.

As reported by Premium times, the Central Bank governor Godwin Emefiele confirmed Friday February 10, that the Supply arising from the limited capacity to print enough new Naira notes is responsible for the severe cash crunch hurting Nigerians.

Mr Emefiele was summoned to address an emergency meeting of the National Council of State, by President Muhammadu Buhari because of threats of social instability following the shortage of the new Naira note. Trade and commercial transactions have almost come to a stand still in the Nigerian informal sector as a result.  And many banks closed down, as pictures of bank employees sneaking out of banks that have been stormed by angry depositors abound