The harrowing experience which accompanied the introduction of the cash policy in the country appears to be easing off, and Nigerians are gradually adjusting to it; TOPE SUNDAY writes.
Today, one of the issues leading the discourse is the cashless policy of the federal government, which is spearheaded by the Central Bank of Nigeria (CBN). Unarguably, it has remained to date, the most talked about, and next to the 2023 presidential election. This may be so because of its effects on the economy and on the generality of Nigerians.
Despite the problems faced by Nigerians as a result of the Naira re-designing, and its scarcity, citizens are gradually adjusting to the policy which most people consider to be anti-poor.
Policy ab initio
The CBN, on October 26, 2022, announced the introduction of the re-design of N200, N500, and N1, 000 banknotes. The CBN governor, Godwin Emefiele, told journalists at a special press briefing in Abuja that the banknotes were to be re-designed after due approval from the federal government, and in a bid to control the currency in circulation, among other reasons for embarking on the exercise.
In compliance with the apex bank’s policy that limited withdrawals across all channels to N500, 000 weekly, banks suspended further cash disbursement via customers’ Naira credit and pre-paid cards.
Consequently, the CBN announced an upward review of its cash withdrawal policy across all payment channels by individuals and corporate organisations.
Under the updated regime, the bank stated that effective January 9, 2023, individuals and corporate entities could withdraw a maximum of N500, 000 and N5 million, respectively, compared to the N100, 000 and N500, 000 which was previously announced on December 6, 2022.
However, the apex bank, in an updated circular dated December 21, 2022, and addressed to all Deposit Money Banks (DMBs) and Other Financial Institutions, Microfinance Banks, Mobile Money Operators, and Agents, explained that the upward review was as a result of the feedback it received from stakeholders.
Exploitation
A social media user, Wakeel Salawu, alleged that the policy gave room for exploitation, insisting that traders who accepted transfers demanded between N20, N30, and N50 as bank charges.
He said: “There is an ugly trend in the commercial environment gaining ground and no one seems to complain. Most SMEs business owners that accept transfers would ask the buyer to add N20, N30, or N50 to the price, calling it ‘bank charges.’ Ironically, many buyers who will make issues with corporate Banks accept it as ‘normal,’ as ‘nothing big’ and ‘I don’t have a choice.’ Some will even fall to ‘you are bigger than that.’
“Just yesterday, I watched a gas attendant making cool cash on students who did not care about throwing away their parents’ hard earned money as he received N30 to N50 on transfer into his O Pay account. Within minutes, he had cornered about N1, 000.
“This is one of the wickedness of ourselves to ourselves. I patronise you, you made a profit from me, and you still exploit me! This request is a lie and exploitation without justification. No bank charges anything for money that comes into the account except up to N10, 000 when the bank charges N50 stamp duties.”
He continued, “So, where is the justification for collecting N50 on the transfer of N500 and below 10k? Even users of online bank platforms that take no charges do ask for bank charges. Unless you use ATM cards on commercial POS terminals, no charges on direct online transfers of below N10k.
“Anyway, I have always resisted this and no one has been able to defend it. I can’t imagine losing N1k daily on several daily transfers when I am not a Yahoo boy or money ritual. If it is 10k upward, I will add the stamp duty without you asking, even if I am dashing you the money.
“Anyway, it is becoming a norm, courtesy of the wicked and obnoxious cash policy. The choice is yours to conform with or resist exploitation.”
Reactions
Speaking with Blueprint Weekend, an Abuja-based trader, Mrs. Josephine Onyenehize, said she now enjoys the cash policy, adding that it has eased off all the stress associated with cash.
“It was difficult initially when the cashless policy was introduced but as soon as we started to see cash flow, it became easier and the stress associated with the introduction of the policy has greatly reduced as most customers quickly adapted. In my own experience, the cashless policy is a welcome development and I think its operation is okay.
In fact, the new policy is okay. We are coping and we love it except for at the initial stage when most people did not have an understanding of how the policy works,” she said.
On his part, Malam Isiaka Shehu, who operates a cyber cafe at the corner shop in the Federal Housing Authority (FHA) Estate, Lugbe, said he had opened multiple accounts to ease his business transaction.
He said: “Concerning the new cashless policy, I’ve been coping by opening multiple accounts with different banks and also making use of Opay. On the workability of the policy, as somebody who is into ICT, I think it is encouraging and I think it will work as it helps people to save money.”
On the fate of Nigerians in the rural areas, he said: “The world is a global village as no place can truly be called a village anymore because some of the so-called villages have better access to the internet than even some cities. After all, they too have to browse the internet and use Facebook and emails. As for some remote areas that have not been covered by the internet, it is the responsibility of the internet service providers to expand and extend their services and antenna to these areas for them to enjoy the policy.”
A wine shop operator at Lugbe, who identified himself as Mr. Mayor, said it has reduced the stress of moving huge amounts of money around amidst insecurity.
“By the grace of God, this policy to me is fine and okay because, with it, one does not have to carry large sums of money around thereby making one’s self a target for criminals while the imposed limitations on daily withdrawals also help to curtail unnecessary spending.
“With the restrictions placed on daily withdrawals which I understand can not exceed more than N20, 000 daily, people can still afford to meet their daily financial needs such as paying for Okada, getting food stuff and groceries as well as other commodities required in everyday existence and, in the situation where the N20, 000 is not enough to purchase what you want, then one can make use of USSD codes for transferring money or use the ATM cards to complement the cash-in-hand.
“Therefore, I think the policy is working and it is a welcome development. One just needs to plan in terms of what is needed and how much it will cost to obtain them.”