Omolabake Fasogbon
It is no longer news that there is scarcity of the naira in the country. Incidentally, this unfortunate development is not new in Nigeria as the Central Bank of Nigeria’s (CBN) currency redesign policy earlier in March this year, made Nigerians go through a historic incident of cash shortage that spelt doom for the masses and the economy.
In addition to personal losses, Lagos-based Centre for the Promotion of Private Enterprise (CPPE) had submitted that the economy also suffered to the tune of N20 trillion.
Unfortunately, this malady has resurfaced, sadly at a period of festivities. Nigerians are back on queues in banking halls and ATM points, exploring available means to lay hand on physical cash to meet their needs this yuletide. This off course does not exclude paying as much as 20 per cent of total withdrawal to point-of-sale (PoS) operators, who are the supposed ‘saviour’ as long as the scarcity last.
Today, people are going as far as neighbouring states to purchase the naira for their daily activities.
Expected to be worst hit by this situation are the poor and SMEs who thrive on liquidity to cover day-to-day expenses. They are already groaning. Many have started counting their losses triggered by sudden alterations to their financial plans.
On this, a financial analyst, Prof. Godwin Oyedokun, expressed concern that scarcity of cash was becoming a reality that Nigerians have to accept.
“Going forward, Nigerians may have to experience cash drought periodically. This is why we must embrace digital payment system, adjust our lifestyle and stay prepared to avoid the shock”, he said.
Although digital payment has evolved, the place of cash cannot be displaced, just as President and Chief Executive Officer, Diebold Nixdorf, Octavio Marquez, submitted that, “Cash enables flexibility, choice and privacy throughout the commerce landscape.”
Not discrediting digital transactions, its imperfections have however forced many on the lowest rung of social ladder out of business and individuals frustrated, especially during previous experience of cash crunch in the country.
Talk of irregular network to facilitate payments through electronic cards or transfer that has made business men lose bulky sales; what about a student or individual that earn meagre, yet bears extra charge on every item purchased, in addition to bank charges.
Like Godwin, another financial expert, Dr. Titilayo Fowokan, emphasised the need for lifestyle adjustment. She however assured that individuals and businesses alike could still win in this situation, by adopting the traditional measures below:
•MSMEs should patronise microfinance institutions, specifically set up to deal with their category.
•Individuals should review their expenses and prioritise what they must buy with cash over the use of transfers and cards.
•Consumers in dire need of a product and without cash or do not want to suffer exorbitant cash withdrawal charges may consider deferred payment option with sellers.
• Large purchases can be negotiated on a discount basis to reduce cash payout.
• Consider substitutes to consumption pattern that can accommodate available cash and adjust lifestyle to always go for what is needed as against what is wanted.
• Cut down excesses and reduce wastage. These are within our control.
Likewise, Oyedokun said consumers may want to look at transferring huge amount to a local grocery store an advanced payment for items to be purchased over a month or thereabouts.
“This is wiser, safer and economical rather than buying in bits and incurring more transaction cost,” he said.
