CPPE Says Cash Scarcity Risky To Livelihoods Of Nigerians

A new report by an economic think tank, the Centre for the Promotion of Private Enterprise (CPPE) says the cash scarcity across the country has not only crippled economic activities but is now a major risk to the livelihoods of most Nigerians.

The Director of CPPE, Dr Muda Yusuf, stated this while reacting to the currency redesign policy.

"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 judgement has not materialised.

“The citizens are consequently left in a quandary.

"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 judgment; the market women and men are waiting to hear from President Buhari or the CBN governor on the legal tender status of old currency notes.”

Calling for an urgent intervention by the President, Major General Muhammadu Buhari, he stressed: “Nigerians have not been this traumatised in recent history.”

The CPPE boss noted that curiously, there is an apparent reluctance or unwillingness by the Federal Government and the CBN to comply with the Supreme Court judgment, describing this as very disturbing and inexplicable.

“Meanwhile, Nigerians continue 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 judgement, and absence of official pronouncement by the CBN on the issue,” Yusuf stated.

He pointed out that retail transactions across sectors had become nerve-wracking and distressing as payment system challenges persisted.

“Since the onset of the cash crisis, the Nigerian economy has lost an estimated N20 trillion.

“These losses arose 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.

“There are also corresponding job losses in the hundreds of thousands.”