Nigeria’s Economy Loses N20 Trillion Over CBN Cash Mop-up – Report

The Centre for the Promotion of Private Enterprise (CPPE) has said Nigeria’s economy has lost about N20tn following the over 70 percent mop-up of cash by the Central Bank of Nigeria (CBN).

In a new report on Sunday, the CPPE Director, Muda Yusuf, said the protracted cash scarcity had crippled economic activities across the country and was now a major risk to the livelihoods of most Nigerians.

Yusuf, therefore, called on President Muhammadu Buhari to urgently intervene in the naira redesign policy of the apex bank which has caused pain and suffering to Nigerians.

He said: “Millions of citizens have slipped into penury and destitution as a result of the disruptions and tribulations perpetrated by the currency redesign policy, especially the mopping up of over 70 per cent of cash in the economy.

“The economy is gradually grinding to a halt because of the collapse of payment systems across all platforms. Digital platforms are performing sub-optimally because of congestion; physical cash is unavailable because the CBN has sucked away over 70 per cent of cash in the economy; and the expected relief from the Supreme Court judgement has not materialised.

“The citizens are consequently left in a quandary. The banks claimed that the CBN has not officially communicated the Supreme Court judgment to them for any actions.

“The President has maintained a worrying muteness on the judgment; the market women and men are waiting to hear from President Buhari or the CBN governor on the legal tender status of old currency notes.”

Yusuf noted that curiously there was an apparent reluctance or unwillingness by the Federal Government and the CBN to comply with the Supreme Court judgment, describing this as very disturbing and inexplicable.

“Meanwhile, Nigerians continue to groan in the adversity inflicted by the acute cash shortage amid rejection of old currency notes by market operators, refusal by banks to accept the old notes, silence by the Presidency on the Supreme Court judgement; and absence of official pronouncement by the CBN on the issue,” he added.