MAN: Cashless Policy Implementation May Hurt MSMEs

The Manufacturers Association of Nigeria has said the implementation of the cashless policy may have negative impact on the Micro, Small and Medium Enterprises.

The association gave the position in a statement released in Lagos on Monday by its Director-General, Segun Ajayi-Kadir.

He described the MSMEs as the engine room of the economy, especially due to its employment generation capacity.

The MAN DG said the Central Bank of Nigeria failed to make any consultations and sensitisation of the relevant stakeholders before reintroducing the cashless policy.

He also noted that the government ought to have put in place the necessary infrastructure that would support and drive the policy before announcing it.

He said, “The charges on withdrawals may have a negative impact on Micro, Small, and Medium Enterprises that are clearly the engine room for growth of the economy and employment generation.”

Segun Ajayi-Kadir also stated that it appeared the CBN decided to penalise non-compliance, adding that rather than introduced gains for those who embraced cashless transactions, it opted to punish those who had not, including those operating in genuinely large cash-driven economic activities.

He said, “MAN, therefore, urges the leadership of the CBN to think through other available options to achieve its cashless policy scheduled to be fully implemented throughout the country from March 31, 2020.”

The apex bank had in a circular to Deposit Money Banks stated that from Wednesday, September 18, it would impose three per cent processing fees for withdrawal and two per cent processing fees for lodgement of amount above N500, 000 for individual accounts.