VANGUARD
“Recurrent cash scarcity is unacceptable.” PUNCH, December 16, 2024
“OPS fears SMEs’ collapse as cash scarcity lingers,” PUNCH same day.
Cash crunch: The way out
In the past one week alone, virtually every paper in Nigeria has joined the national hysteria concerning acute and worsening cash crunch. The National Assembly, NASS, recently woke up from their collective slumber, to demand that the Central Bank of Nigeria, CBN, should end cash scarcity! There is a national alarm now; which reveals that Nigeria’s elders and most of its gatekeepers in the media don’t listen to warnings. Dr Nwajei, the ICT guru, has repeated several times that “if you want anything hidden from Africans, put it in a book”
To that, it should be added, “or publish it in a newspaper”. Unless it is considered defamatory by a big man then it will get noticed. Otherwise, nobody in government or its agencies pays attention to anything written about their activities unless it is favourable; even if untrue.
“Expect scarcity of everything; scarcity of food, scarcity of dollars…scarcity of cash supply in banks.” Dele Sobowale, 2023.
That prediction was made in December 2023. Three articles had been published since then in which I warned about inevitable cash scarcity. The reasons for the pessimistic forecasts were given; and possible solutions suggested. Only one cause of the imminent cash crunch was left out; because it borders on wilful and organised sabotage. All the warnings were ignored by all those now calling for action. That is typical Nigerian response to tragedies; closing the gate after the cows have fled. It is bad enough that those now calling for immediate answer don’t even know enough about the causes; they actually applauded the measures introduced by the CBN which got us where we are.
HASTY DRIVE TO CASHLESS SOCIETY: ATM AND POS
“Haste makes waste” was a lesson we learn in primary schools in the 1950s.
Quite frequently, over-speeding is often associated with unintended accidents.
Because babits are often stronger than reason, deliberate speed is often advised when implementing new ideas which aim to change entrenched behaviour. The drive towards cash-less society was a great idea which was rushed and led to the present predicament. The urgency solved one problem, but created more.
When banks installed Automatic Teller Machines, ATMs, to speed up cash payments and relieve pressure in banking halls, they also increased the number of people carrying cards significantly. As more people became accustomed to using ATMs, the need to enter banking hall declined.
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