Impact of CBN's New Cashless Policy on Small Businesses
In a recent open letter to the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, the President of Africa's Young Entrepreneurs (AYE), Dr Summy Smart-Francis, lamented the devastating impact of the country's new naira/cashless policy on small businesses and entrepreneurs.
According to the letter, the policy has made it extremely difficult for individuals and businesses to gain access to cash, causing the cost of living and doing business to skyrocket. As a result, many small business owners have run into losses and debts, while farmers have watched their produce rot due to a lack of legal tender for transactions.
The letter also described the nightmarish experience of long queues at banks' ATMs, with people even sleeping there overnight to get cash. This has made it difficult for workers to get to their workplaces, with some having to trek long distances as they couldn't get cash for transportation fares.
While acknowledging the benefits of a cashless society, AYE urged the CBN governor to tread more carefully in the future when implementing policies and to listen to the plight of the people. The organization also called for adequate time to be factored in to spread literacy about the benefits and operations of a cashless society across Nigeria.
The new naira/cashless policy was introduced by the CBN in a bid to reduce the amount of physical cash circulating in the economy and to encourage more electronic payments. However, it has faced criticism from many quarters for its negative impact on small businesses and entrepreneurs.
The impact of the new naira/cashless policy on small businesses and entrepreneurs in Nigeria remains a matter of concern, with many calling for more measures to be put in place to support these vital economic actors.
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