Afe Babalola (SAN), Founder and Chancellor of Afe Babalola University, Ado-Ekiti, yesterday asked the Central Bank of Nigeria and the Federal Government to swiftly tackle the increasing lack of assessible cash to customers of commercial banks in Nigeria.
He hypothesized that this development, if not nipped in the bud can have dire consequences that will surpass the impact of the Covid -19 pandemic in Nigeria.
The senior advocate expressed his dissatisfaction with the development, citing the ugly experiences that customers faced as they were turned back from most financial institutions
He zeroed into the happenings within the University, disclosing how customers could not withdraw cash from the Automated Teller Machines (ATMs) in the university. According to him, even the bank branches in ABUAD also had no cash to pay customers. “The saving grace was that the students, who rely on ATMs for their transactions, were on holiday,” he said
The legal luminary called for a critical review of the situation, imploring the Federal Government to do what it takes as soon as possible, because of the potential of this to lead to a hunger crisis and an increased crime rate.
In a statement issued in Ado-Ekiti, the Chancellor said: “Nigeria used to be a developing country, but in the last few years, what we have experienced is backward development.
“There was a time when our economy was basically through trade by barter. Gradually, traders exchanged goods for cash. Now, most Nigerians, including market women, transporters, hawkers, plumbers, roadside mechanics, and hairdressers earn their living from daily sales.
“In the absence of sales through cash, these Nigerians suffer more than the few wealthy Nigerians due to the cash crunch induced by the CBN and commercial banks.”
Babalola maintained that Covid-19 is less deadly than the hunger crisis that could arise from the crash crunch. “According to a study by Johns Hopkins, hunger kills 11 people every minute, compared to seven COVID-19 deaths,” he said.
Meanwhile, another insight into the problem is the rising rate of inflation. Adamu Lametek, the Deputy Governor of the Central Bank, recently acknowledged that the CBN has not been able to reduce the inflation value to its pre-pandemic level. With prices of commodities on the surge, Nigerians will need more cash to lead about their normal lives, creating a demand for cash that may exceed the supply estimation of commercial banks