Firstly, I would like to appeal to the readers of this post to be dispassionate about its contents and mentally dissociate from calumny as your contribution is a service to the growth of our country Nigeria.

What, today seems to be a hurried decision by the CBN is in actual fact a sequel to the numerous efforts by the Apex bank to rescue our ailing economy. Previous methods applied have had mixed result, but we must appreciate them for not folding their hands and watching.

Bad fiscal policies started the problem and the CBN is left to bear the brunt. From the prohibition of AbokiFX to the ban on black market FX traders, eNaira (crypto), Afrigo, the tone of the CBN has been consistent.

https://arbiterz.com/cbn-nibss-launch-afrigo-africas-first-national-payment-card-scheme/

In a failing body one organ will not replace the duties of another, rather it will augment its function to best compensate for the failure of the other.

Here are a few points in support of the recent currency swap by the CBN and enforcement of cashless policy and hopefully this will open the eyes of the some Nigerians to the silver-lining of this initiative as well as the pretense and perfunctory diligence of politicians.

It is said Nigerians are suffering, my question then will be who are these Nigerians suffering?

We are the poverty capital of the world, meaning the majority live below 1.9USD (900-1500NGN) a day…

https://businessday.ng/amp/opinion/article/nigeria-how-do-we-expect-world-poverty-capital-to-be-safe/

https://www.thisdaylive.com/index.php/2021/09/06/report-nigeria-still-poverty-capital-of-the-world/amp/

Over 99.4% of Nigerians have less than 500,000 NGN in their bank account…

https://www.ripplesnigeria.com/99-4-of-bank-accounts-hold-less-than-n500000/?amp

https://saharareporters.com/2022/11/02/ruling-apc-has-impoverished-nigerians-just-06-percent-have-n500000-above-bank-accounts

Minimum wage is 30,000 NGN, so I begin to wonder how much cash is required for daily sustenance if the majority of employed persons early the above stated.

https://www.premiumtimesng.com/news/headlines/507087-nigerias-minimum-wage-grossly-inadequate-cant-meet-basic-nutritional-needs-of-an-adult-report.html?tztc=1

My second argument aims to take our attention back to the errors made by the CBN and its subsequent attempt to correct it.
A serving minister had raised the alarm on the dastardly act of printing more money to pay debts. This poorly thought of ingenuity is a part of the problem being addressed now.
With all the monies pumped into the economy by the Apex bank, it cannot account for over 2.7trn NGN. Monies not registered in any deposit bank, monies present in houses, not yielding interest nor being tax.

https://platinumpost.ng/2021/05/03/weve-been-printing-money-since-2015-but-we-were-warned-not-to-tell-nigerians-amaechi/

https://platinumpost.ng/2021/04/10/fg-printed-n60bn-in-march-as-oil-money-dries-up-obaseki/

What do we have when there’s a lot of money in a country pursuing less goods… if you guessed inflation, you’re right. This is coupled with the artificial inflation created by the black market because for every dollar purchased above it’s true value the CBN is forced to create a naira equivalent directly or indirectly.

Thirdly, we must accept the fact that the only constant thing in life is change. We are behind in electronic banking and the opportunities within is more than that without. In an age of bitcoins cashless policy is yesterday news.
The onus is on us to best educate ourselves on how best to adapt our businesses to this system. It’s safer, faster, reliable and sharp practices as well as reduces terrorism, banditry and other duffel-bag transacted crimes.

It expands the tax net.
Politician are accustomed to speaking from two corners of their mouth, but what still amuses me is the hypocrisy they adorn with pride. As citizens we must be able to sift through their statements and discern their true intentions.
Illegal taxation is rife in Nigeria because it profits politicians the most and not the common man. The various face cap wearing, unregistered unions that extort bystanders and petty traders in the name of levies, remit their proceeds to politicians and this denies you the victim access to quality social amenities…

https://www.thisdaylive.com/index.php/2023/01/26/fg-urged-to-reduce-borrowing-increase-igr-by-widening-tax-net/amp/

There’s been enough time to make the swap and adjust… sadly the commercial banks have failed to play their part in making sure other media of transactions are hitch free.

https://guardian.ng/news/cash-swap-programme-takes-off-nationwide-one-week-to-deadline/

In conclusion, this government hasn’t gotten a lot right, but on this they have done a stellar job, but for the saboteurs.

I urge fintechs to seize this opportunity and expand their platforms to make transactions easier.

I urge tech start ups to engage SMEs and MSMEs to key into having an online presence with payment options at very low costs.

And I urge critics and commentators to be constructive, the problem are both economic and ideological poverty not the CBN. Refrain from character assassination and proffer solutions and insights.

I look forward to your responses.

God bless Nigeria!

Nigerian logic

“CBN didn’t print enough new notes” but POS operators somehow have these illusive new notes for sale. Shouldn’t Nigerians interrogate these operators as to where they got the monies from?

The CBN will not return the previous volume of cash to the economy, it’s pushing for cashless transactions.
So yes, sooner or later the mechanics, welders, plumbers, carpenters will need to have a bank account and a POS.

“Transfer no dey go”, but it does work whenever you pay into the POS operators account and not when you pay your vendors or sellers. POS operators must tell us the network or type of POS they use.

“They’re people who are unbanked”, this is an unfair statement as banks have a unit who’s vested with the responsibility of taking banking to the population and help them open accounts in minutes. For some years now there’s been so much campaign about DIY banking.

Please let’s desist from online crowdsourcing with hackneyed submissions and seek out the truths from official channels. There are a lot of liars on the internet that prey on the genuine hardship of a few.
Cashless policy should be supported, take advantage of the various instruments for transactions CHEQUE books, transfer forms, USSD, ATMs, mobile banking, internet banking etc…

Side note…
For those who are better enlightened, how do we as a country institute a credit scoring system, good mortgages, credit cards etc… if people are allowed to empty accounts at will? Horde cash? Etc
if you say with time… when?
Nigerians from remote areas travel abroad and in days become acquainted to eBanking model abroad but want to take their time back home.