FEATURE: CBN naira redesign policy takes a toll on students’ businesses, lives

When Mohammed Taoheed, a 200-level Law student of Usmanu Danfodiyo University Sokoto heard that the school would be locked after examination for the 2023 General Election, he aimed to leave the 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 him before he would get the one thousand naira (N1,000) new banknotes.

This time, it’s mid-february when the students of the school had been saying 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 cash, but the security guard at the GTBank told me among others that there’s no money to dispense for the day,” Taoheed recounted his ordeal with a worry in his face.

Since students could not afford N10,000 cash due to the scarcity of new notes; and in order to ease the hardship of the transit from places like Sokoto to Ilorin, or Sokoto to Lagos among other places, many associations within the school mediated with the drivers, with an agreement that larger parts of the transport fares would be transferred, while a smaller part: will be paid in cash for any expenses the journey may likely incur.

Despite this, the situation was still unbearable as Taoheed struggled to get new two thousand naira notes to balance the N8,000 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 the value, 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, reduce counterfeiting of notes, increase financial inclusion and control inflation, among other reasons, Nigerians still felt the wrath of the cashless policy.

Since the inception of the policy, Many Nigerians have been living in hardship, businesses have crumbled, banks burnt, hospital patients are dying; villagers are battling depression while new banknotes are being bought with huge amounts.

Taoheed 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 unable to endure the sickness and nor 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 offers free treatment. He was given medication after hours. Unfortunately, he was unable to get food from morning till 08:00 pm and this prevented him from taking his medications.

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“I think this is the worst and hardest challenge I’ve 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 reporter, 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 8:00 pm when I profusely begged a woman selling tuwo at the school hostel to give me food and promised to pay later,” he recounted.

Businesses Crumbled, Masses Suffer Untold Hardships

These days, due to the hardship the policy had brought, many entrepreneurs had to close their businesses.

Abdquadri Olagunju, a 300-level microbiology 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 still lingers in my heart. I hardly gathered N3,000 with which I paid the driver.

“When I alighted at 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 a long distance again to get something to eat as many chefs in his community were not collecting transfers.

Financial Institutions Overstretched— Aims defeated

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 the commercial drivers refused to accept transfer of money for the transport costs. However, getting money to pay the drivers came with exchange of banters which almost resulted into 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 N1,500 charge on N5,000. I was shocked and shouted, even the church collects 10% for tithe,” he lamented.

Ridwan recounted that the encounter almost resulted into trouble that day. “I was determined to beat the guy because what he was doing was clear exploitation. To be frank, we later got 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 reports, CBN’s statistics show that just N1.4 trillion in 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 in circulation. So this policy was put in place to curb insurgency and allow circulation of currency among others.

However, the policy has created a grave problem between individuals, financial institutions and Point of Sale agents. Since inception, no less than three banks have been burnt with billions of naira lost.

Saki, Oyo Nigeria— Rasaq Ayinla, a man in his 40s and an aluminium potter while speaking with this reporter said although prices of some goods have reduced, the difficulties and extra charges to get cash to pay for the goods are more harmful than the difference in price.

“Here in Saki, motorcycles were sold at N370,000 before this policy but now it’s N300,000 but you have to pay in cash with the new currency.”

Jamiu Akanbi, a cow dealer in Saki, Oyo State while recounting his experience said that he transferred N160,000 to collect N120,000 new notes. “POS agent charged me a whole fourty thousand naira on one hundred and twenty thousand naira transaction,” he lamented.

In a social media post, one half of the popular singing duo, 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.

By Hussain Wahab

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