Naira Redesign: CBN Pushing Many Nigerians Into Stone Age Of Trade By Barter– PWC’s Tax Lead

An expert at PricewaterhouseCoopers has criticized the Central Bank of Nigeria for poorly managing the currency redesign policy.

The Fiscal Policy Partner and Africa Tax Leader at PWC, Taiwo Oyedele, warned of the severe consequences of the policy on innocent citizens.

The criticism came as the CBN’s policy to withdraw old N1,000, N500 and N200 notes has caused a huge cash shortage.

The CBN has withdrawn N1.9trn from the system while only N300bn of the new notes have been printed and distributed to the banks.

Nigerians only have until February 10, 2023, to deposit the old notes in banks. But getting the cash has been a war for households and businesses.

Oyedele said, “Rather than achieve more financial inclusion and widespread adoption of e-payment, we may inadvertently be pushing many Nigerians into the stone age of trade by barter given the epileptic bank transfer and e-payment system being experienced over the past few days.

“This is at a time when many people are unable to withdraw neither the old nor the new notes from their banks and for those who are lucky to do so, it is being rationed after they must have endured annoyingly long queues.

“The CBN needs to supply sufficient new notes, one for one with the old notes being withdrawn from circulation to meet all demands.”

Bank customers like Ibrahim Iliyasu, in Gwarinpa, Abuja who spoke to THE WHISTLER said he woke up as “early as 4am in search of cash to buy some basic needs .”

A POS merchant, Patience Ayuba, has suspended her POS business citing “inability to get cash to pay her customers.”

The cash drought is also affecting the patronage levels of retail stores.

Supermarkets like Elina Supermarket and Supplies, in Abuja, have seen decline in sales since the cash draught began.

“Some of our customers that purchase with cash are complaining. Some of them do not even have bank accounts and it is affecting our sales,” a sales representative of the supermarket who does not want to be named said.

The CBN had while introducing the currency redesign said fewer notes will be printed to promote a cashless policy in the country.

Oyedele said, “The focus at this time should be not to lose the support of the masses for the new policy while collecting data about those who are withdrawing unusually large sums for necessary actions subsequently.

“It is counterproductive to seek to implement a cashless economy abruptly at the same time the new Naira notes are being rolled out in limited quantities within a very limited timeframe.”