It all starts with the January 31st deadline that the Central Bank of Nigeria set for Nigerians to return the old 1000, 500 and 200 notes to the banks, then they announce a 10 day extension until February 10th, then it follows the shortage of new banknotes.
The scarcity of old and newly redesigned notes doesn’t make some Nigerians wonder if the notes are really ready to operate a cashless policy.
The shortage of di naira notes for Nigeria does not become an additional level of difficulty for the citizens of Africa’s most populous kontris.
Now it is common to see very long queues in front of banks and ATMs, as they try to withdraw cash, be it old or new bills.
Videos of pipo wey dey fighting while trying to gain access to ATMs or even inside bank rooms do not circulate on social media. Dis na unusual situation for Nigeria and for the citizens.
Within all the confusion, pipo dey wey dey supposedly spent di new naira anyway.
Videos of politicians don’t go viral as they share the new notes they give to Dia’s followers and family members as they show off the redesigned notes they collect as “gifts”. cash
This situation and the shortage make the governor of the Central Bank of Nigeria, Godwin Emefiele, allege that the banks accumulate new banknotes.
E tok on Tuesday when we appeared before the ad-hoc Committee of the House of Representatives when by torchlight the new naira note was implemented.
On the same Tuesday, local tori pipo reported the news of a senior CBN official saying that they caught some commercial bank officials for one of the southwestern states and mismanaged the new notes.
Di Deputy Director, Department of Banking Supervision, CBN Lagos, Kayode Makinde, says: “we see some pipo trying to accumulate new bills.”
“We come across cases of sabotage by the operators,” Makinde said. BBC does not fit independently verified wetin Makinde tok.
But even though agencies like the Independent Commission for Corrupt Practices and Other Related Crimes fail to arrest ‘hoarders’ of di naira, currency remains scarce.
And like many ATMs across the country they are also unable to dispense cash or make pipo start to wonder if Nigerian banks are sabotaging CBN policies.
‘Cashless policy for the benefit of banks’
Banks seek the center of the cash shortage as CBN accuses them of sabotaging the cashless policy.
On Dia’s side, the bank sees no reason why dem are going to sabotage the cashless policy because the policy is “not to their own advantage.”
Tok tok pesin for one of the major banks in Nigeria, tell the BBC that banks are big beneficiaries of the cashless policy.
“Knock out the cost of handling cash, the cost of transporting cash is a really expensive business for banks, very expensive.”
Also, to hold cash, banks pay a deposit vault insurance premium per branch.
“Don’t forget to say that banks pay daily vault insurance premiums per branch depending on the amount of cash they have,” he says.
She adds, let’s say, cash into a nonprofit asset, that is, let’s say they don’t make any profit if they hold them.
But the banks do not see what is happening as scarcity per se, but they say that na pipo neva is in line with reality, they say that there is less money in circulation now that there is no cash.
They see it as a consequence of collecting old notes to replace them with new ones that don’t do much for the old ones.
Our source says: “I think they say that pipo calls scarcity the natural consequence of cleaning out the old and putting the new in a way that doesn’t put me on the same level as the old.
For example, let’s say one trillion in circulation and say system look am say, we don’t need one trillion in circulation, we’re going to clean up one trillion in circulation and when we put in a new bill, we only put in five hundred billion. Dat na wetin pipo dey calls scarcity.
“If you take a good look at the full can, there’s no change in the amount of cash available, so Pipo just needs to go electronic. Dat na di reality. So, how much do we get in shape so that companies and people move to the electronic channel? All we need is to adapt.”
As the tins are now, Nigerians cannot see how much cash they have access to before again, he said.
Is Nigeria ready for cashless policy?
Nigeria is transitioning from a cash to cashless society, the wey di CBN bin process is first introduced to im kontri pipo by October 2022 with an announcement saying and go to redesign the three largest currency notes to di kontri wey be: N200, N500, N1000.
Since the announcement of the cashless policy, they don’t want to resist POS agents who make a living providing cash to pipo, we need cash, but they don’t want to go to the bank for the community day.
Politics gets the most resistance from politicians in the heart of election season and needs cash for supposed vote buying plus oda transactions they don’t want to trace to demsef, dis na wetin stakeholders dey tok.
The latter group sees the new policy as a direct attack on them.
On Wednesday, Kaduna State Governor Nasir el-Rufai, for an interview with TV channels, said that the timing of the new policy will weaken APC ahead of the upcoming elections.
“Na very good intention – very clear intention. Say president na white heart. But doing it at this time within that time doesn’t make any political or economic sense. And for this program to work, we are involved as governors, at the subnational level.
“For my state, we have two local districts without banks. For Borno State, out of 27 local districts, only two get banks. For Yobe State, out of 17 local districts, only two get banks,” said Governor El- Rufay.
Wetin be cashless policy?
Operating a cashless policy means saying that the Central Bank discourages the use of raw cash for transactions.
But this policy encourages the widespread use of bank transfers, ATM cards, POS and other financial instruments to transfer cash electronically.
For Nigeria, this policy hasn’t been in place for about seven years, but it’s not the first time that Nigeria’s top bank, di CBN, has actually implemented a plan to go cashless.