Nigerian Economy Loses N20trn To Cash Crunch – CPPE

Nigerian economy has lost not less than N20 trillion from the deceleration of economic activities, crippling of trading activities, stifling of the informal economy, contraction in the agricultural sector and the paralysis of the rural economy, arising from Naira scarcity. 

Two weeks after the supreme court judgement that the old N500 and N1,000 notes be legal tender until the end of the year, Nigerians are still grappling with scarcity of cash, even as the chief executive of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf called on the federal government to alleviate the suffering of the masses.

Although some banks have been paying out with the old notes, it is being rejected by Nigerians as they said the banks are not accepting it. 

LEADERSHIP findings revealed that some banks were not outrightly rejecting the old notes but were insisting that customers fill the forms for depositing the old notes on the portal of the Central Bank of Nigeria (CBN).

Noting that the scarcity of cash has also led to corresponding job losses in hundreds of thousands, Yusuf called on the federal government to direct the CBN to inform Nigerian public that the old currency notes alongside the new notes remain legal tender until the 31st December 2023, in line with the supreme court judgement.

“The CBN should be directed to officially communicate the outcome of the Supreme court judgement to the banks and affirm compliance with the judgement. The president should publicly empathise with Nigerians on the unwarranted and inexcusable pain and suffering that the currency redesign policy has wreaked on them.

“The protracted acute cash scarcity has not only crippled economic activities in the country, it is now a major risk to the livelihoods of most Nigerians.  Millions of citizens have slipped into penury and destitution as a result of the disruptions and tribulations perpetrated by the currency redesign policy, especially the mopping up of over 70% of cash in the economy. Nigerians have not been this traumatized in recent history.

“The economy is gradually grinding to a halt because of the collapse of payment systems across all platforms. Digital platforms are performing sub-optimally  because of congestion; physical cash is unavailable because the CBN has sucked away over 70% of cash in the economy; and the expected relief from the supreme court judgement has not materialised.  

“The banks claimed that the CBN has not officially communicated the supreme court judgement to them for any actions; the President has maintained a worrying muteness on the judgement; the market women and men are waiting to hear from the president Buhari or the CBN governor on the legal tender status of old currency notes. 

“Curiously, there is an apparent reluctance or unwillingness by the federal government and the CBN to comply with the supreme court judgement.  This is very disturbing and inexplicable.

“We again plead with the President to immediately intervene to put an end to the devastating and traumatic outcomes of a repressive, poorly conceptualized and badly implemented currency redesign policy.,” Yusuf pointed out.