Business

Cashless policy’ll disrupt SMEs

By Merit Ibe

The  National Association of Small Scale Industrialists(NASSI),  has lamented that the Central Bank of Nigeria(CBN)’s cashless policy will disrupt most Small and Medium Enterprises(SMEs) as they get their raw materials from rural communities which are  under banked. 

Chairman, Lagos chapter of the association, Gertrude Akhimien, who made the remark,  applauded the policy which will tame rising inflation, curb corruption and herald the cashless banking.

Akhimien, however noted that many  of her members in the manufacturing sector buy raw materials from rural areas that are under banked.

She said transactions are done with cash in these areas, where most of the traders don’t have accounts, adding that  with the new policy, government needs to put a lot of things in place, wondering how businesses involved with traders in such communities  will thrive.

The NASSI boss lamented that a number of SMEs will be devastated with the approach of CBN as more businesses might close shop due to inability to meet up, calling on the government to  give enough time for everyone to catch up and make banks available in rural  communities..

“The cashless economy is a good policy,  instead of moving cash around. It makes transaction easier but till today, many still go around with cash because sometimes transactions fail in banks. “The bank attendants give excuses ranging from no internet, cyber is down and all sorts; meanwhile goods are on ground waiting to be cleared. 

“For the cashless policy to be more effective these issues need to be taken care of. Government needs to put a lot of things in place. 

“Though I see it as a process because of the transition to  new naira notes. It needs to be closely monitored  so that it does not affect the business environment negatively.”

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