Naira Scarcity: Nigeria’s Economy Deteriorating With N20tn Loss –Report

The nation’s economy had been described to be deteriorating and unproductive as it lost N20 trillion to the current naira scarcity situation, the latest report from Centre for the Promotion of Private Enterprise on Sunday stated.

The economic data further said that the 70 per cent mop-up of cash by the Central Bank of Nigeria, CBN with the consent of the federal government has negatively affected the economy.

Investors King reports that the nation’s cash crunch has halted economic activities in the country as cash payment has ceased and there is congestion in the digital banking system causing malfunctioning.

According to the Director of CPPE, Dr. Muda Yusuf, the naira redesign policy and the expungement of 70% of the cash in circulation have greatly affected millions of citizens as some have slipped into a state of extreme poverty.

Dr Yusuf, who said Nigerians have not been traumatised to the current state before called on President Muhammadu Buhari to urgently intervene.

He alleged that the President and CBN are reluctant to agree and comply with the supreme court ruling on the matter which has made Nigerians more confused and disturbed. 

The CPPE boss noted that the cash crunch has crippled retail businesses that depend on cash payment, adding that the digital payment system has also been unstable.

His words, “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 judgment 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.

“Since the onset of the cash crisis, the Nigerian economy has lost an estimated N20tn. 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.”