The Centre for the Promotion of Private Enterprise (CPPE), a leading economic think-tank in Nigeria, estimated the protracted acute cash scarcity has cost the country over N20 trillion even as the negative impacts on households and ordinary Nigerians cannot be quantified in monetary terms.
The Centre’s Chief Executive Officer, Dr. Muda Yusuf, in a statement issued at the weekend linked the huge losses to the country to the deceleration of economic activities, the crippling of trading activities, the stifling of the informal economy, contraction in the agricultural sector and the paralysis of the rural economy with corresponding hundreds of thousands of job losses over the past weeks.
Yusuf pointed out that millions of citizens had 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 per cent of cash in the economy. Nigerians have not been this traumatized in recent history.
He rued: “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 per cent of cash in the economy; and the expected relief from the Supreme Court judgment has not materialized. The citizens are consequently left in a quandary.
“The banks claimed that the CBN has not officially communicated the supreme court judgment to them for any actions; the President has maintained a worrying muteness on the judgment; 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”, the seasoned economist added.
While noting the seeming reluctance or unwillingness by the Federal Government and the CBN to comply with the apex court’s judgment, the OPS’ frontline advocate said that ‘this is very disturbing and inexplicable.
According to him, Nigerians have continued to groan in the adversity inflicted by the acute cash shortage amid rejection of old currency notes by market operators, refusal by banks to accept the old notes, silence by the presidency on the Supreme Court judgment; and absence of official pronouncement by the CBN on the issue. ”
Yusuf also lamented that retail transactions across sectors had become nerve-wracking and distressing as payment system challenges persist.
He expatiated: “Evidently, President Buhari did not seem to appreciate the gravity and enormity of the suffering and pain that Nigerians have been experiencing since the onset of the currency redesign policy. 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. We request the following immediate actions.”
To mitigate the negative impact on the broad spectrum of the economy, the CPPE’s chief said the CBN should be directed to immediately inform the 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 judgment.
He advocated: “The CBN should be directed to officially communicate the outcome of the Supreme Court judgment to the banks and affirm compliance with the judgment.
“The president should publicly empathize with Nigerians on the unwarranted and inexcusable pain and suffering that the currency redesign policy has wreaked on them.” he added.
