Protracted naira scarcity causes loss of N20tn to economy
By Felicia Nwosu
The Centre for the Promotion of Private Enterprise (CPPE), has confirmed that the protracted, acute cash scarcity being experienced in the country has not only crippled economic activities in the country, but that 70% of the country’s money has been sucked out of the economy, costing Nigeria’s economy N20 trillion as a reprisal and ripple effect caused by persisted payment system challenges.
Expressing displeasure over the outcome of the currency redesign policy, Dr. Muda Yusuf, the Executive Director, CPPE, noted that the economy is gradually grinding to a halt because of the collapse of payment systems across all platforms.
According to the former Director-General of Lagos Chamber of Commerce and Industry, the persistent payment challenges since the onset of the cash crisis has deprived the already pressured economy to lose an estimated N20 trillion.
“These losses arose from the deceleration of economic activities, the crippling of trading activities, the stifling of the informal economy, the contraction in the agricultural sector, and the paralysis of the rural economy. There are also corresponding job losses in the hundreds of thousands.
The CPPE said 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. It said Nigerians have not been this traumatized in recent history.
“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 judgment has not materialized. The citizens are consequently left in a quandary,” he said.
Dr. Yusuf, while analyzing the actions of key players in the naira redesign policy, described it as inexplicable.
“Curiously, there is an apparent reluctance or unwillingness by the federal government and the CBN to comply with the Supreme Court’s judgment. This is very disturbing and inexplicable. 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,” he said.
The economic expert expressed worry over the prolonged sufferings of the citizenry who lament as they move from pillar to post in search of money.
“Meanwhile, Nigerians continue to groan in the adversity inflicted by the acute cash shortage amid the 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. The president should publicly empathise with Nigerians on the unwarranted and inexcusable pain and suffering that the currency redesign policy has wreaked on them,” he advised.
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