The Central Bank of Nigeria’s cashless policy and the redesigned naira notes has created a lot of economic hardship for people both in the urban and rural areas with most Nigerians unable to carry out e-transactions on their phones.
More often than not digital payments run by banks are often times not reliable , leaving businesses struggling just as a growing number of customers are finding it increasingly difficult to access cash to pay for goods and services, thereby creating a situation where the new naira notes is being traded in black market.
Consequently, many businesses and shops have had to shut down. The stall and business owners complain of lack of cash to run and operate their business concerns.
“Someone might want to transfer funds to you, but it can’t be processed and they don’t have cash because of this issue,” said Chima Ekwueme, who sells car parts in Nigeria’s capital, Abuja. “Sometimes, I ask them to drop my goods and go and find money anywhere.” .
Associated Press reports that the cash crunch has become so severe that businesses are at a standstill. Some Nigerians have alleged that even some banks are unable to carry out bank transfers, leaving customers more frustrated than ever.
“I have not been able to carry out any transfer from my phone with the bank application that I stored since this policy took effect,” Mudashiru Abike, a business owner said.
Mrs Nkem Ofodile, a housewife has similar story of woes to tell. According to her, her undergraduate son in one of Nigeria’s private universities, called to complain about not being able to get his bank App on his phone working. “ I asked him to try and get to his bank to lay his complaints,” Nkem said
These level of frustrations cut across board, leaving many dejected and hurting. Most Automated Teller Machines, ATM, are not working and in some banks, customers after queuing almost a whole day, are only able to get not more than N2,000 .
The cash supply crisis has disrupted such sales across the country, forcing a good number of businesses to shut down, said Muda Yusuf, head of the Nigeria Center for Promotion of Private Enterprise.
“The two critical sectors of the economy — trade and commerce as well as agriculture — have been very badly affected because they do a lot of transactions in cash, especially in rural areas,” Yusuf said. “This policy has brought their economic activities to a halt.”
Authorities should allow more time for the old notes to be gradually replaced by the new ones, he said.
“To make matters worse, the supply is extremely limited. Economic activities have been practically crippled as some people have locked their shops,” Yusuf added.
Nigerian authorities said the redesigned banknotes and new withdrawal limits would help curb the use of money to influence the Feb. 25 presidential election, though experts argue the currency changes are being done at the expense of most Nigerians. They’re already facing inflation of 21.3%, a 37% increase in the rate in a year.
With reports from AP