CBN News Update On Naira Notes Today Tuesday 4th April 2023

Financial Literacy and Digital Banking Crucial for Financial Inclusion

Dr. Femi Egbesola, the national president of the Association of Small Business Owners of Nigeria (ASBON), attributes the sharp decline in MSME activity to a lack of financial literacy and access to digital banking platforms. He stresses that these factors are crucial to bridging the financial exclusion gap in the country’s informal sector and reducing redundancy and labor loss in the MSME ecosystem.

Impact of Cashless Monetary Policy

According to Dr. Egbesola, approximately 60% of the 40 million MSMEs in Nigeria were affected by the Central Bank of Nigeria’s (CBN) cashless monetary policy, which forced about 25 million businesses into a decline in activity and closure. He expresses concern about the negative impact of this policy on the ease of doing business ranking, which he believes is at an all-time low due to the government’s policies that are killing businesses and hurting the economy.

Government Must Prioritize MSMEs

Dr. Egbesola urges the Nigerian government to prioritize MSMEs by appointing qualified individuals to manage the affairs of the MSME ecosystem. He stresses that SMEs are vital drivers of economic growth, and the government must take urgent steps to support them and improve the ease of doing business ranking in the country.

Naira scarcity: Sanwo-Olu’s transport palliative came in handy – The Sun Nigeria

Why naira scarcity won’t end soon

Currency In Circulation To GDP Ratio Falls From 1.63% To 0.49% In Two Months
• Scarcity’ll Contract GDP Up To 0.5% In Q2, FG Warned
• No Bank Can Meet 50% Of Customers’ Cash Needs — Managers
• CBN Must Increase Cash Circulation To N2.3tr To Ease Scarcity, Says Emmanuel
• Nigerians No Longer Depositing Cash, Advised To Brace Up For More Hardship

Why naira scarcity won’t end soon

Currency In Circulation To GDP Ratio Falls From 1.63% To 0.49% In Two Months
• Scarcity’ll Contract GDP Up To 0.5% In Q2, FG Warned
• No Bank Can Meet 50% Of Customers’ Cash Needs — Managers
• CBN Must Increase Cash Circulation To N2.3tr To Ease Scarcity, Says Emmanuel
• Nigerians No Longer Depositing Cash, Advised To Brace Up For More Hardship

Notwithstanding assurances by the Central Bank of Nigeria (CBN) to ease cash scarcity in the country, data and financial analysts, market intelligence and expert opinions suggest Nigerians would live with limited cash circulation for long or months unless there is a radical departure from the apex bank’s management approach.

The CBN was recently forced down from its high horse by the Nigeria Labour Congress (NLC), which threatened to ground the economy if cash circulation does not improve drastically.

The decision came after weeks of partial implementation of the Supreme Court’s ruling extending the validity of the hitherto phased out old notes to December.