Hussain Wahab
When Mohammed Taoheed, a 200-level Law student of Usmanu Danfodiyo University Sokoto heard that the school will be locked after examination for the 2023 General Election, he aimed to leave the school environment as soon as possible. Immediately after his paper on 16th February, he prepared for the journey but never had he envisaged the sweat it would cost before he would get just one thousand naira(N1,000) new banknotes.
This time it’s mid-february when the students of Usmanu Danfodiyo University Sokoto had been waving goodbye to the campus. Taoheed held his phone, frowning and stranded while looking for cash.
“Like a ghost roaming the streets of Elmina, I had to go here and there looking for where to get cash to travel back after I finished my exams but I spent a whole day at the bank, waiting with hope that I’ll be able to withdraw but the security guard at the GTBank told me among others that there’s no money to dispense for the day,” he recounted his ordeal with a worry in his face.
Since students cannot afford N10,0000 cash due to the scarcity of new notes; so, in order to ease the hardship of the transit from the likes of Sokoto to Ilorin, Sokoto to Lagos among other places. Many associations have mediated with the drivers, resulting that larger parts of the transport fares will be transferred while a smaller part: will be paid in cash for any expenses the journey may likely incur.
Despite this, the situation is still unbearable as Taoheed is struggling to get new two thousand naira notes to balance the N8,0000 he had previously transferred. It took him more than six hours, wandering around like a sheep without a shepherd to get one
“Eventually, I met a student who offered to sell a N1,000 new note for me at the rate of half of it, that is with N500. I had to pay him with a transfer and GT bank continued to deduct my money indiscriminately,” he lamented.
Although the federal government through the Governor of the Central Bank of Nigeria, Godwin Emefiele, had announced the redesigning of N200, N500 and N1000 notes since Oct, 2022, in order to battle against corruption, prevent hoarding of the currency from the public, to reduce counterfeiting notes, increase financial inclusion and control inflation among other reasons. However, Nigerians are still feeling the wrath of the cashless policy.
Since the inception of the policy, Many Nigerians are living in hardship, businesses have crumbled, banks burnt, patients are dying; villagers are struggling for depression while new banknotes are being bought with huge amounts.
Toheed is among the many Nigerians bearing the brunt of the federal government’s action in redesigning the country’s N200, N500 and N1000 naira notes.
Just like Taoheed, Taiwo Akanni (not real name) is another student who suffered the sting of the cashless policy.
He fell sick during the exam period, as he’s irresistible to endure the sickness and unable to continue his papers with such ill-status. He had to consult a doctor but the cashless policy deterred him from getting medicine from the pharmaceutical store.
Akanni therefore resorted to going to the UDUS school clinic which is farther from his residence but free treatment is given. He was given medication after hours. However, it’s unfortunate that he was unable to get food from morning till 08:00pm and this prevented him from satiating his hunger and taking his medications.
“I think this is the worst and hardest challenge I had as an undergraduate,”he said. “It was February 17th, I was sick and woke up without food. I had an exam in the morning. I made a decision to take the exam first with the aim of getting food later.”
While speaking with this newsman, he revealed that he had money in his account but the vendors and chefs did not accept transfers— “I suffered and had nothing on my stomach despite the sickness, not until around 8:00pm when I profusely begged a woman selling tuwo at the school hostel to give me food and promised to pay later,” he recounted.
Business Crumbled; Masses Suffered Untold Hardship
These days, due to the hardship the policy had brought, many entrepreneurs experienced crumbliness in their various businesses.
Abdquadri Olagunju, a 300-level microbiology student and self-sponsored student who survives on his bread and data business suffered the brunt of the policy
“My business is on hold again,” he said
“Apart from this, the toughness I went through before I could finally get cash to leave the campus is still lingering in my heart. I hardly gathered N3,000 which I paid for the driver.”
“When I alighted my home town [Ilorin], I had to take a motorcycle to my destination, though I have over N20,000 naira in my account, but for the fact that I was cashless, I had to trek for miles; Oko Olowo to Omoda with heavy loads on my head and hand.”
When Olagunju reached home, he had to trek long distances again to get what to eat as many chefs in his community are not collecting transfers.
Financial Institutions Overstretched— Aims
Like Olagunju, Dauda Ridwan Olalekan, a 200-level English student of Ahmadu Bello University also experienced a similar fate on his way back to Ibadan, [his hometown] for the General Election. They were at Oojo in Ibadan cashless and their drivers refused to accept transfer of money for the transport costs. However, getting money to pay the drivers came with exchanges of banters which almost resulted in fighting.
“We were taken to one POS guy within the terminal, we wanted to withdraw thirty thousand naira N30,000 and the guy refused to give us up to that amount. He said the highest he can give is N5,000 per person. My friend and I agreed to do it separately and collect N10,000 naira but the guy said he’ll be collecting N1500 charge on N5,000. I was shocked and shouted even the church collects 10% for tithe,” he lamented.
Ridwan recounted that troubles almost bumped through that day. “I was determined to beat the guy because what he is doing is clear exploitation. To be frank, we later see the cash with N3,000 naira charges on N30,000 which approximate with tithe,” he narrated with burning heart.
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According to BusinessDay, The CBN’s statistics shows that just N1.4 trillion currency was in circulation in 2015. The total amount of money in circulation as of October 2022 was N3.23 trillion, of which only N500 billion was kept in the banking system and N2.7 trillion was kept in houses permanently. So this factor is put in place to curb insurgency and allow circulation of currency among others.
However, the policy has led to a grave eruption of battles between individuals, financial institutions and Point agents. Since the inception, no less than three banks have been burnt with billions lost.
Saki, Oyo Nigeria— Rasaq Ayinla, a man in his 40s and an aluminium potter while speaking with this reporter in a worrisome and sympathetic tone said that although some goods prices have reduced, the difficulties and extra charges to get cash to pay for the goods are more harmful than the good.
“Here in Saki, motorcycles were sold at N370,000 before this policy but now it’s N300,000 which you have to pay in cash with the new currency.”
Jamiu Akanbi, a cow dealer in Saki, Oyo while recounting to this reporter said that he transferred N160,000 to collect N120,000 new notes. “Point agent charged me a whole fourty thousand naira on one hundred twenty naira transactions,” he said.
In a popular post, the veteran musician, PSquare; Paul Okoye lamented that he had to buy N40,000 with N70,000 at the embassy—
“Just because I have to pay for a certain visa fee in an embassy and it has to be paid in cash. Joke apart. I bought 40k with 70k. Aahhhh!!!!!!!! “Naija breaking new records,” he wrote.
Meanwhile, in a judgment delivered by supreme Court on Friday, 3 March on naira redesign suit, filed by 16 governors of the federation. Seven-member panel of the apex court held that the old N200, N500 and N1000 remain valid legal tender until 31 December 2023. However at the time of filing this story, the CBN has not