A lot of brouhaha has gone about the Naira redesign policy which has pathetically been dangerously politicized with some politicians scheming on how to defeat it.

While some are scheming to defeat the policy because they think it puts them at a disadvantage, some others are throwing their weight fully behind the policy because they believe it will give them a fighting chance against some supposed heavyweight politicians with heavy financial war chest to prosecute the upcoming elections.

But away from politics, let’s try to make a dispassionate appraisal of the policy, highlight its numerous advantages and why well meaning Nigerians should support it to succeed.

1) CORRUPTION
One of the major things that the cashless policy being pursued by the CBN through Naira Redesigning will tackle, greatly, is corruption. Every keen follower of the Nigerian system knows that most illicit funds that are being stolen from govt coffers are moved in cash to avoid being traced by govt anti money laundering agencies. But with the introduction of cashless policy, if it succeeds, it will now be increasingly difficult for these scrupulous elements to move illicit funds as almost every electronic transaction can be traced through the help of BVN.

2) INSECURITY
A popular maxim in the security sector is that “security is an expensive venture”. It is the reason billions are budgeted for it.

But just like security, insecurity is similarly an expensive venture. It costs millions to buy guns and maintain supply of logistics. Now, the money used for this venture is moved through the “black market” in cash to avoid triggering suspicion from security agencies.

Now, if this policy succeeds, cash will disappear from the system and these guys will be forced to either source funding in alternative currency or be forced to pack up. I hope you don’t believe the propaganda that they have Ghana Must Go of the new currency?

3) KIDNAPPING AND RANSOM TAKING
There’s this question that people have been asking as if it’s a joke but when you think through it critically, you would realize it’s actually true.

When last did you hear of kidnap since the Naira Redesign was introduced? Well, even the kidnappers know that kidnapping anybody and demanding for millions of naira in cash to be dropped off in whatever location is now equivalent to wild goose chase. Because the average Nigerian, and even the rich, cannot boast of 50,000 naira cash right now, not to talk of millions of Naira.

So, in the long run, it’s either these guys start to demand their ransom in dollars, for instance, which they know cannot be easily sourced or they begin to dare the authorities by accepting ransom through bank transfers which will expose them to easy arrest. Or alternatively, they would be forced to close shop.

4) MORE REVENUE FOR GOVERNMENT AND BANKS

For every electronic transaction in Nigeria, government has a 7.5% VAT that will go to it. Now, with almost everyone forced to start making payments via the electronic means, it means that there would be spike in electronic transactions which would also translate to more revenue to the government. A revenue that if used judiciously will aide the provision of social amenities and infrastructures.

On the side of the banks, with near disappearance of cash from the economy, most people who previously did not have a bank account would be forced to open a bank account as absence of it would mean you might have to close shop. Now, just like the government owns about 7.5% VAT on every transaction, so also does the banks have their own percentage which would translate to increase in revenue accruable to banks. And more revenue, banks will have more funds to either recruit more staff or pay their current staff better; a gain for Nigerians working in the bank.

5) GROWTH IN FINTECHs
Before this policy, Nigeria was already touted as the Fintech capital of the world, but with this policy, I expect Nigeria to cement her place as the Fintech capital of the world and even give an insurmountable gap to other nations in that regard.

Why do I say this? In that period when bank apps were failing, Nigerians resorted to some Fintect platforms like Opay, PalmPay, Sparkle, etc. I was surprised the day somebody made a payment to me with Sparkle ❇️. Before then, I had only heard about the platform once.

So, that’s it. This policy will help in the development and growth of Fintechs like these which would create heavy financial inflows for their owners. And I’m sure some of these platforms are owned by Nigerians. And even when not owned by Nigerians, they still offer employment to Nigerians and their growth means the possibility of need for more number of staff which will translate to jobs for Nigerians.

6) REDUCTION IN INFLATION
One of the disadvantages of too much cash in circulation is inflation. Nigeria’s inflation has been running riot and defiling arrest with its attendant high cost of goods in the market. But with the Naira redesign and accompanying scarcity of cash, traders have been reported to have no or low sales due to absence of goods. What this means is that we now have fewer cash chasing much goods, deflation, as against much cash chasing fewer goods, inflation. Don’t be surprised when the data for February inflation rate comes in and inflation has started taking a down spiral.

There you have it.

While I acknowledge some immediate discomforts that comes with the implementation of the policy, the long term benefits that the policy will bring far outweighs whatever short term discomforts it is causing us.

So, I join the President and the CBN Governor in appealing to us, Nigerians, to allow the policy succeed and not join some scrupulous politicians who are only after their selfish interest to sabotage this laudable policy.

Penguin is a bird of reason

Nlfpmod
Mynd44

Nice

Only fools will see this and wail

Penguin2:
A lot of brouhaha has gone about the Naira redesign policy which has pathetically been dangerously politicized with some politicians scheming on how to defeat it.

While some are scheming to defeat the policy because they think it puts them at a disadvantage, some others are throwing their weight fully behind the policy because they believe it will give them a fighting chance against some supposed heavyweight politicians with heavy financial war chest to prosecute the upcoming elections.

But away from politics, let’s try to make a dispassionate appraisal of the policy, highlight its numerous advantages and why well meaning Nigerians should support it to succeed.

1) CORRUPTION
One of the major things that the cashless policy being pursued by the CBN through Naira Redesigning will tackle, greatly, is corruption. Every keen follower of the Nigerian system knows that most illicit funds that are being stolen from govt coffers are moved in cash to avoid being traced by govt anti money laundering agencies. But with the introduction of cashless policy, if it succeeds, it will now be increasingly difficult for these scrupulous elements to move illicit funds as almost every electronic transaction can be traced through the help of BVN.

2) INSECURITY
A popular maxim in the security sector is that “security is an expensive venture”. It is the reason billions are budgeted for it.

But just like security, insecurity is similarly an expensive venture. It costs millions to buy guns and maintain supply of logistics. Now, the money used for this venture is moved through the “black market” in cash to avoid triggering suspicion from security agencies.

Now, if this policy succeeds, cash will disappear from the system and these guys will be forced to either source funding in alternative currency or be forced to pack up. I hope you don’t believe the propaganda that they have Ghana Must Go of the new currency?

3) KIDNAPPING AND RANSOM TAKING
There’s this question that people have been asking as if it’s a joke but when you think through it critically, you would realize it’s actually true.

When last did you hear of kidnap since the Naira Redesign was introduced? Well, even the kidnappers know that kidnapping anybody and demanding for millions of naira in cash to be dropped off in whatever location is now equivalent to wild goose chase. Because the average Nigerian, and even the rich, cannot boast of 50,000 naira cash right now, not to talk of millions of Naira.

So, in the long run, it’s either these guys start to demand their ransom in dollars, for instance, which they know cannot be easily sourced or they begin to dare the authorities by accepting ransom through bank transfers which will expose them to easy arrest. Or alternatively, they would be forced to close shop.

4) MORE REVENUE FOR GOVERNMENT AND BANKS

For every electronic transaction in Nigeria, government has a 7.5% VAT that will go to it. Now, with almost everyone forced to start making payments via the electronic means, it means that there would be spike in electronic transactions which would also translate to more revenue to the government. A revenue that if used judiciously will aide the provision of social amenities and infrastructures.

On the side of the banks, with near disappearance of cash from the economy, most people who previously did not have a bank account would be forced to open a bank account as absence of it would mean you might have to close shop. Now, just like the government owns about 7.5% VAT on every transaction, so also does the banks have their own percentage which would translate to increase in revenue accruable to banks. And more revenue, banks will have more funds to either recruit more staff or pay their current staff better; a gain for Nigerians working in the bank.

5) GROWTH IN FINTECHs
Before this policy, Nigeria was already touted as the Fintech capital of the world, but with this policy, I expect Nigeria to cement her place as the Fintech capital of the world and even give an insurmountable gap to other nations in that regard.

Why do I say this? In that period when bank apps were failing, Nigerians resorted to some Fintect platforms like Opay, PalmPay, Sparkle, etc. I was surprised the day somebody made a payment to me with Sparkle ❇️. Before then, I had only heard about the platform once.

So, that’s it. This policy will help in the development and growth of Fintechs like these which would create heavy financial inflows for their owners. And I’m sure some of these platforms are owned by Nigerians. And even when not owned by Nigerians, they still offer employment to Nigerians and their growth means the possibility of need for more number of staff which will translate to jobs for Nigerians.

There you have it.

While I acknowledge some immediate discomforts that comes with the implementation of the policy, the long term benefits that the policy will bring far outweighs whatever short term discomforts it is causing us.

So, I join the President and the CBN Governor in appealing to us, Nigerians, to allow the policy succeed and not join some scrupulous politicians who are only after their selfish interest to sabotage this laudable policy.

Penguin is a bird of reason

Nlfpmod
Mynd44

- Reduce cash in circulation.
- Eliminate vote buying.

It will and must succeed.

Nothing good comes easy.

Disadvantages

Unemployment :Bulk tellers , pos operators people walking for opay kuda and others will loss their jobs

It will affect small scale business more businesses will close down

It will affect the GDP

It will cause inflation

The farmers will be affected which will lead to shortage of food supply

More people will be depress , frustrated and more sucide act

It affect the revenue of the country

It might lead to anarchy

This is nice write-up. My people in the SW should read it

seunlayi:
This is nice write-up. My people in the SW should read it

Lol!

Unfortunately your people in the Southwest are letting Tinubu lead them to the slaughter because of his selfish ambition.

But I know it’s not all of you sha.

All this would happen if its done within a reasonable time frame.

Since the announcement of this policy, about 5 people have died, people's businesses have crumbled and people are really passing through alot.

Today alone, I met 2 people asking to transfer money to me so that I pay their transport fare just because they don't have the new notes.

Would any of you support the carpet bombing of a location which houses both civilians and terrorist because you want to eliminate the terrorist?