Nigeria’s Economic Trauma: A Tale of Cash Scarcity and Suffering

 

~~ Dr. Aiyeku Olufemi Samuel, Co-Founder Global Opportunities Hub

The President  Ahmed Tinubu GCFR -led government’s new economic  reforms and acts have plunged Nigeria into economic trauma, leaving citizens and businesses reeling. The recent cash scarcity, which has persisted for two weeks, has brought the economy to its knees. The situation is particularly dire in Minna, Niger State, where exorbitant POS charges have become the norm.

POS Charges: A New Normal?

In Minna, Niger State, citizens are forced to pay outrageous POS charges, including:

- #150 for #5,000 cash withdrawal

- #300 for #10,000 cash withdrawal

- #500 for #20,000 cash withdrawal

These charges are not only a burden on citizens but also a testament to the government’s failure to address the cash scarcity issue.

Impact on Businesses and Citizens

The cash scarcity and exorbitant POS charges have far-reaching implications for businesses and citizens:

- Reduced Sales: Businesses are struggling to stay afloat as customers are unable to access cash.

- Increased Poverty: The cash scarcity has exacerbated poverty, as citizens are unable to access basic necessities.

- Loss of Trust: The government’s inability to address the cash scarcity issue has eroded trust in the financial system.

The consequences of cash scarcity can be far-reaching and devastating, affecting individuals, businesses, and the overall economy. Some of the consequences include:

Economic Consequences

 Reduced Economic Activity: Cash scarcity limits the ability of individuals and businesses to engage in economic activities, leading to reduced sales, revenue, and economic growth.

 Increased Poverty: Cash scarcity exacerbates poverty, as individuals are unable to access basic necessities, such as food, water, and healthcare.

 Inflation: Cash scarcity can lead to inflation, as the reduced money supply chases a constant quantity of goods and services, driving up prices.

 Unemployment: Cash scarcity can lead to unemployment, as businesses are forced to reduce staff or shut down due to reduced economic activity.

Social Consequences

 Increased Crime: Cash scarcity can lead to increased crime, as individuals become desperate and resort to illegal activities to access cash.

 Social Unrest: Cash scarcity can lead to social unrest, as individuals become frustrated and angry with the lack of access to cash.

 Reduced Access to Essential Services: Cash scarcity can limit access to essential services, such as healthcare and education, exacerbating existing social inequalities.

Psychological Consequences

 Stress and Anxiety: Cash scarcity can cause significant stress and anxiety, as individuals worry about their ability to access cash and meet their financial obligations.

 Reduced Mental Health: Cash scarcity can lead to reduced mental health, as individuals become overwhelmed by the pressure of managing without cash.

 Loss of Trust: Cash scarcity can lead to a loss of trust in the financial system, as individuals become disillusioned with the inability of the system to provide access to cash.

Business Consequences

 Reduced Sales: Cash scarcity can lead to reduced sales, as customers are unable to access cash to make purchases. Supply Chain Disruptions: Cash scarcity can lead to supply chain disruptions, as businesses struggle to access cash to pay suppliers and employees.

 Business Closures: Cash scarcity can lead to business closures, as businesses are unable to operate without access to cash.

Solutions for the Federal Government and Citizens

To address the economic trauma, the federal government and citizens must work together:

- CBN Intervention: The Central Bank of Nigeria (CBN) must intervene to address the cash scarcity issue and regulate POS charges.

- Increased Transparency: The government must provide transparent communication about the cash scarcity issue and its plans to address it.

- Citizen Engagement: Citizens must engage with their representatives and demand action to address the economic trauma.

- Alternative Payment Solutions: Businesses and citizens must explore alternative payment solutions, such as mobile banking and online transactions.

In conclusion, Nigeria’s economic trauma requires urgent attention from the federal government and citizens. By working together, we can address the cash scarcity issue, regulate POS charges, and promote economic growth.



Regards

TakeMyGist™®

@takemygist 

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