Why the Cashless Policy and Economy failed in Nigeria
The past few months have been traumatizing for most Nigerians.
The cashless policy by the CBN is obviously not working.
The society is not yet ripe for such a massive switch because for a cashless policy to work and achieve the desired results, some important things must be in place.
Many Nigerians are going through a lot in this period and things are not easy for many people, especially parents.
Some factors contributed to the failing of the cashless policy, which is gradually leading to a collapse of the economy.
When it was announced, people thought the reason for the implementation was to curb or reduce vote buying and corruption in the electoral process.
If that was the idea, then it is clear that the purpose was defeated because the cashless policy and inability to access funds have left so many Nigerians poor and frustrated.
Despite efforts by the Central Bank of Nigeria (CBN) to modernize the financial sector, there’s been countless struggles and challenges.
Some of these challenges are:
- Shortage of cash in banks: Only a few people have access to the amount of money they need.
- Insufficient technology infrastructure: The technology infrastructure in Nigeria is still in the growing phase. It is not stable yet.
We can recall how zenith bank and GT Bank app shutdown few weeks ago.
- A large population of non-tech-savvy individuals: This is causing a lot of harm to the process.
- Ignorance: Many petty traders believe they shouldn’t have a bank account since they are operating a small-scale business.
I interviewed a petty trader, and she said that what is the need of having s bank account when the profit she makes a day is less than three thousand Naira(3,000)?
So many people still prefer to continue the traditional way of transacting and conducting their businesses; this impedes the progress towards a cashless economy
The challenges envisaged in a cashless economy in Nigeria can also be linked to:
- Fraud.
- Unemployment.
- Indiscriminate deductions from accounts.
- High rate of illiteracy and
- Epileptic power supply.
Nigeria is not yet ready for a total transition to a cashless economy and policy because the things needed to achieve this are not in place yet.
The big task now is how to patronize these petty traders while maintaining the cashless policy.
