Micro, Small, and Medium Scale Enterprises have asked the Central Bank of Nigeria to reconsider its cashless policy in order to boost business growth.
Segun Kuti-George, National Vice Chairman of the Nigerian Association of Small-Scale Industrialists, lamented the impact of recent cash scarcity and emphasized the need for the CBN to conduct a thorough review of the cashless policy.
The CBN reversed its cashless policy on Thursday
However, Solomon Aderoju, National Vice President of the Nigerian Association of Small and Medium Enterprises, stated that the hardship experienced by MSMEs during the recent cash crunch was severe and that a thorough review was required.
According to Femi Egbesola, national president of the Association Of Small Business Owners Of Nigeria, many businesses have faced numerous challenges in their operating environment.
“It’s unfortunate that we have a slew of challenges bombarding micro and small businesses at the same time,” he said. It’s called a myriad because it’s basically everything happening at the same time.
“Many small businesses in Nigeria are still cash-dependent today.” Larger businesses are already in sync with online transactions, but small and micro businesses are more cash-based.
Egbesola went on to say that the association had carried out a study to determine the impact of naira scarcity on small businesses. He stated that the study’s findings revealed that 19% of small businesses had closed as a result of the cash crunch, while many others were on the verge of doing so.
In addition, Peter Popoola, a member of the Nigerian Association of Small and Medium Enterprises, stated that SMEs were struggling to stay afloat because sales had dropped “dramatically.”
According to the Lagos Chamber of Commerce and Industry, the Nigerian economy is primarily cash-based, with over 80% of transactions in volume terms conducted through the physical exchange of the Naira.
