Black Market Forex; Black Market Fuel; Black Market Naira; Black Market etc…
The new naira notes rollout was initiated as part of an economic improvement agenda claimed by the Apex Bank. To be candid, the need for a new Naira note is long overdue, but what calls for answers is the timing of same. The general election is scheduled to happen in the next few days at the time the populace struggles to access the new naira note and fuel. While the benefits of the new naira notes and the cashless policy cannot be overemphasized, the plight of the populace attributable to the limited access to the new naira note is undoubtedly an eyesore. In a country with a population of nearly 220 million, any mismanaged agenda is often taken advantage of by unsuspecting criminal elements. These unsuspecting criminal elements are opportunists:
It is common knowledge that dichotomy exists in forex in Nigeria. It is also not news that the price of fuel is now unofficially floated. It is not easy to buy petroleum products at the official rate. Many now buy PMS and diesel at more than twice the official rate. Now people are buying money with money because of the new Naira note: There is hunger in the land. Basic human needs are inaccessible. No constant light, no access to potable water, limited good roads, and an increased unemployment rate. Increased cr*me rate, increased banditry, poor education system. and strike here and there without any form of accountability. The list goes on. Any unpopular policy this time may not be widely accepted unless systematically implemented without any form of bias.
Although having PoS operators located almost every 1-minute walk may have generated some sort of employment and eased access to funds, the adverse effect of this cannot be overemphasized. Increased unaccounted legal tender in circulation, increased crime rate, and reduced tax remittance are some of the negative effects of PoS operations.
Seeing the footage of full-grown men and women displaying some unprintable behaviours in the banking hall just to withdraw their hard-earned money is an eye-sore. Who is to be blamed? Certainly not the bank customers: How could financial and banking policies be rolled out without adequate provision or veritable feasibility studies? In a normal clime where new notes are to be rolled out, both old and new notes are concurrently in circulation for an ample period while mopping up the old note. A minimum of six months could be considered while more public awareness regarding same continues.
To condemn the old naira notes without adequate new notes in circulation is indeed unpopular. The new note scarcity certainly breeds criminality which seems evident. It is obvious that new note is not readily available to the common man. How are PoS operators able to access the new naira note when same is not readily available to the populace? It may be safe to say that there is a conspiracy between PoS operators and some corrupt bankers. The potential conspiracy may have been in a tandem with the agenda of some banks caught hiding the new notes only to perhaps sell the money to some corrupt PoS operators who in turn make life miserable for their innocent customers. A 20% fee charged by selected opportunist PoS operators is nothing short of evil and corruption. The only reason why anyone would be willing to part with such charges could only be out of desperation.
To be at par with some developed and developing countries, the cashless policy is a good idea. The implementation should have been well done without any form of political agenda. A pilot project should have been explored while implementing the policy. All the unbanked s luke be captured. Polic awareness and sensitization should have been done before a full rollout. The cash dispense access point should have been enhanced with more access points. Filling stations, major malls, major public places, all local government offices, hospitals etc should have ATM posts.
To promote the cashless policy, adequate preparation is imperative. Aside from the bank or ATMs, the alternative way of accessing some cash at no extra cost could be through merchants. When you purchase a product, you may ask for some cash using your debit card. In developed countries, anyone could access cash through merchants such as but not limited to Walmart, Superstore etc at no extra cost. Of note, the daily fund to be accessed is caped. The rural area monetary management scheme should be explored while the unbanked are also captured without any stress.
To also ease access to funds and transactions, all business owners are encouraged to use PoS machines for their business. PoS machines should be nearly free or affordable for all merchants – big or small business owners. All merchants are encouraged to register their companies.
The policy may be incentivized in part by offering a business loan to business owners participating in the cashless policy program. One of the easiest ways of reaching the grassroots is through the Local Government where business grants could be offered to qualified applicants based on conceptualized credit products management scheme. The more registered businesses the more taxes are generated.
The cashless policy could be enhanced with technology. The telecommunication companies could maximize this policy by engaging IT experts and APPs developers that could create an interface where business owners could use their mobile devices for PoS operations.
Disclaimer: The author writes this article as a concerned citizen without prejudice.
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