Following the Naira Scarcity in Nigeria, GoldenNewsNg has compiled Latest CBN News and Update on Naira Notes Today 8th May 2023.
Naira Scarcity Induced High Loan Default Among Nigerians, Survey Shows
The Central Bank of Nigeria’s naira redesign policy caused a shortage of cash in the country, leading to a surge in loan defaults among Nigerian banks. According to a survey by Successory Nigeria Ltd, loan approvals peaked in the first quarter of 2023, but customers were unable to repay due to the cash scarcity.
As a result, there was a sharp increase in loan defaults and overdue payments, which impacted the earnings and operating costs of financial institutions. The CBN introduced new N1,000, N500, and N200 notes in October 2022, and subsequently withdrew over N2trn from the system, causing citizens and businesses to suffer from a chronic cash crunch.
The survey also revealed that the policy led to a rise in corporate running costs affected by inflation, and exposed the greed of some Nigerians. The survey concludes that the policy was a punishment and that future policies and economic decisions should be made to avoid negative impacts on the livelihoods and economy of Nigerians.
CBN to Introduce Contactless Payment Guide That Will Turn Phones, Watches into PoS, ATMs
CBN Develops Guidelines for Contactless Payment Systems as Nigerian Breweries Blames Naira Redesign Policy for Revenue Decline
Subheading: Adeyemi Adefuye, Deputy Director of the Payment System Management Department of the CBN, has announced the development of guidelines for contactless payment systems in Nigeria, as Nigerian Breweries attributes its Q1 2023 revenue decline to the naira redesign policy.
CBN Develops Guidelines for Contactless Payment Systems
According to The Nation, the Central Bank of Nigeria (CBN) is developing guidelines for contactless payment systems in the country. Adeyemi Adefuye, Deputy Director of the Payment System Management Department of the CBN, recently made the announcement in Calabar, Cross River State. The guidelines will cover the technical and operational requirements for implementing contactless payment systems and the security measures needed to protect customers’ information.
Adefuye highlighted the benefits of contactless payment, including convenience, speed, and improved customer experience, which can increase spending, revenue, profitability, and retail business growth leading to an increase in GDP. The instruments that will be used for contactless payments include stickers, FOBs, wearable devices, tokens, and mobile electronic devices.
The CBN’s efforts to develop guidelines for contactless payments come as the COVID-19 pandemic has accelerated the shift towards cashless transactions worldwide. The move is also aimed at promoting financial inclusion and reducing the risks associated with handling cash.
Nigerian Breweries Blames Naira Redesign Policy for Revenue Decline
Meanwhile, Nigerian Breweries disclosed a decline in revenue of N10.71 billion in its Q1 2023 financial result. The NB board attributed the drop in revenue to several challenges, including the CBN’s naira redesign policy, which was announced in October 2022 and led to a severe cash scarcity.
The naira redesign policy involved the introduction of new N1,000, N500, and N200 notes, with the old notes being withdrawn from circulation. The policy was aimed at addressing counterfeiting and other issues, but it caused a severe cash crunch that affected businesses across the country, including Nigerian Breweries.
In addition to the naira redesign policy, Nigerian Breweries also cited rising input costs, inflation, and the impact of COVID-19 as contributing factors to the decline in revenue. The company’s Q1 2023 result showed a revenue of N69.12 billion, down from N79.83 billion in Q1 2022.
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