Failed Logistics, Others responsible for Naira Scarcity

The current chaos occasioned by the Naira redesign and failed Logistics of the distribution of the New Naira Notes across the Country is a Disaster that has made it difficult for the average Nigerian to go about their daily activities without stress.

Economist Paul Alaje disclosed this while speaking to TVC News Tolulope Ogunjobi on the flagship Business programme, Business Nigeria on Wednesday afternoon.

Mr Alaje while describing the experience he has had with Traders in the city of Ibadan where he is currently after moving around the Country in the last few days said the chaos has ensured that Traders are losing as much as 20% of their daily sales due to the difficulties surrounding them getting cash for sales and converting Electronic Transfers into cash after daily sales.

He disclosed that this has led to them losing most of their Capital with their profit margins now being eaten into due to the issues surrounding the policy implementation.

He said the policy has had a devastating effect on the vast majority of Nigerians who live under the yoke of multi dimensional poverty.

He described the Policy as not being totally bad but needs a lot of tweaks to make it work with the Economy being badly affected with the supply chains of most commodities now facing daunting challenges centred around network of banks and the inability of especially the Agricultural Value Chain being able to overcome the cash based set up that has long being in existence before now.

He also said his own experience of trying to use electronic channels for Financial Transactions has shown how difficult it is to use and added that some commercial banks have remained unresponsive for days now.

According to Mr Alaje, the issue at play currently is not just the policy itself but lack of adequate planning on the part of the Central Bank of Nigeria to ensure adequate supply of money for circulation among Nigerians.

He said the Central Bank of Nigeria has Succeeded in mopping up over 2.1 Trillion Naira since the commencement of the Policy but has only funneled less than half of it into the system.

He said the decision has created a supply chain shock which has led many Nigerians to continue to demand for their cash for spending especially that it is not a robust enough Economy that can withstand that kind of shock for now.

He expressed his hope that the ruling by the Supreme Court will help in ensuring that the Central Bank of Nigeria has a rethink and find ways to reduce the tension generated by the failure to plan effectively and put the needed Volume of cash into circulation.

He also expressed a major doubt in the ability of the bank to address the situation despite the ruling due to what he says is a kind of ambiguity in the ruling which only says the Old notes should be allowed to co-exist wit the New Notes and does not give a clear directive that the 80% of the old notes already mopped up should be released into circulation.

He posited that the ruling will not ensure instant circulation of Cash starting from Thursday.

EKITI STATE DISTRIBUTES N130MILLION NAIRA CHEQUES TO PENSIONERS

Ekiti State Governor, Biodun Oyebanji has distributed gratuity Cheques of 130 million naira to retired Local Government workers and Primary School Teachers in the state restating his administration’s commitment to prioritising welfare of workers and pensioners in the State.

In fulfilment of his Campaign Promises to Pensioners in Ekiti State, Governor Biodun Abayomi Oyebanji is here doling out cheques to retired Loval Government and Primary School Teachers in the State

The Governor Says this intervention is aimed at providing financial support and recognition to those who have dedicated a significant portion of their lives to public service and education.

The Senior Citizens in their numbers were excited and thanked the Governor for honouring the Memorandum of Understanding Signed before the election.

The Governor used the occasion however to solicit support for the Presidential Candidate of the All Progressives Congress so as to compliment his effort at the State.

Several Speakers at the event urged the Beneficiaries to use the money judiciously and take good care of their health while paying tribute to those who lost their lives in the Struggle.