By Merit Ibe, [email protected]
Recent experiences arising from the naira notes redesign policy and its attendant cash scarcity have again tested the resilience of Nigerians.
Dr Nathan Owhor, a development economist, who spoke with Daily Sun on the cashless policy, implementation and attendant scarcity of new naira notes, says the experience of Nigerians most recently has defied the concept of the new economy.
Owhor shared his thoughts on lessons that will no doubt guide political leaders, shape the economy and future of the country.”
Economy
The Nigerian economy is moving towards electronic handling of cash by the citizens.
The scarcity of the new bank notes are a reflection of the cashless policy. But the Nigerian economy is caught in a dilemma that was apparently unintended. Granted that the outcome of the bank notes redesign policy and the overall cash scarcity has once again tested the resilience of the Nigerian people, it has no doubt come short-of the intended gain of the new economy.
New economy
The new economy across the globe is focused on socio-economic justice such that no one should go to bed hungry.
In the new economy, there is a deliberate effort to reduce inequality and hunger. There is a desire to reduce the cost of living by ensuring that the capital gains on goods and services are minimised.
The new economy seeks to ensure better standard of living that upliftsthe poor, as trust and good relationships are established and sustained in the society. But the experience of Nigerians most recently has defied the concept of the new economy..
Lessons
There are great lessons to be learnt in all of these challenges.
*First and without prejudice to the anger and public protest in parts of the country, Nigerians appear to have come to terms with the cash challenges. There is the great expectation that in the next few days such challenges in the economy will normalise. This hope has remained the singular reason for the resilience.
•It is also important to note that in the face of the acute cash scarcity, Nigerians in several places went back to the traditional philosophy of trade-by-batter. There was no legislation to bring this to pass. It was rather a smart way to overcome the difficulties of getting cash for daily transactions. In some places farmers who had enough food-stuff to spare reached out to extended relations and neighbours.
•The other big lesson is the fact that the failure of the Central Bank of Nigeria (CBN), to print and circulate the lower naira denominations of N50 and N100 bank notes was exposed. These levels of bank notes were not redesigned and their scarcity is therefore uncalled for? If the CBN did not fail in this respect, the hue and cry of the masses could have been minimized. This is partly the reason for the high rate of inflation in the domestic economy.
*The poor attitude of some Nigerians who have a penchant to inflict unnecessary pain on fellow citizens was also brought to the fore. On the heels of the naira scarcity was the emergence of a new rent-class in the economy. The Point of Sale (POS) operators and their rent-seeking collaborators in the banking sector became the new henchmen in town. They determined the charges on POS transactions which became a burden to most Nigerians. This selfish attitude further induced poverty in the society.
•The new bank notes and the general scarcity of cash has also revealed that political contestation with less cash is possible in Nigeria. It has demonstrated more than ever before that Nigerians can make political choices and largely vote without financial inducement. These are great lessons that will no doubt guide political leaders, shape the economy and the future of the country.”