Inflation, Vote Buying will stop with Cashless Policy

The implementation of the cashless Policy announced by the Central Bank Of Nigeria is a move to control the twin challenges of Inflation and Vote buying during Elections.

Professor of Accounting at the Nile University of Nigeria in Abuja, Ofili Ugwudioha, disclosed this while speaking to Tolulope Ogunjobi on the TVC News Business Programme Business Nigeria on Monday afternoon.

The withdrawal limit given by the Central Bank of Nigeria and the redesigning of the Naira are meant to address some specific Economic and Political problems namely inflation and Vote buying.

He said the Policy will help in curbing vote buying which is already on during the campaigns, a situation he said the Government specifically targets to address with the introduction of the withdrawal limit.

On how it will curb inflation, he disclosed that most of the money on record at the Central Bank of Nigeria as being in circulation are not the proceeds of Economic activities and in some cases abound more in private hands.

He posited that the Money in the formal and informal sector must be working to create value a situation he said is not the current case.

He said the reduction of Money in circulation will ensure that Monetary Policy meant to address Economic challenges will be more effective.

Going further, He sad the Policy will help in reducing bribery and Corruption as public Servants will no longer be able to stash stolen cash in some hidden places thereby depriving the nation and the Economy of the benefits of creating value through such cash.

He posited that this will also help in reducing insecurity by reducing the amount of cash available to kidnappers and Other sundry criminals for ransom.

He also disclosed that an unintended byproduct of the policy has been the rise in the value of the Dollar and the Pounds sterling due to those who have stash of cash at home trying to put their loot in safe havens through the Dollar and Pounds.

He added that the Current upswing in Economic indications and performance can be attributed to an increase in the level of Crude Oil exports by Nigeria over the last six months.

According to him the Nigerian Economy is still not diversified and being a mono product Economy makes it difficult to improve especially now that the nation does not refine its Crude which has made it difficult to get the benefits of diversification or even its mono product.

According to Professor Ugwudioha, refining and processing of Crude in Nigeria would have added at least 30 more products in the Value addition and refining of Petroleum Products by the nations Petrochemical complexes as obtained in Other parts of the World.

He described the diversification of the Nigerian Economy into Solid Minerals Refining, Refining of Petroleum Products and Petrochemicals and the Value Addition to Agric Products as the Silver Bullet that will be the catalyst to develop the nations Economy.