Kwara state Coalition of Business and Professional Association (KWACOBPA) on Thursday said that members of the association lose at least N30 million daily to cashless and Naira redesign policies of the Federal Government.

Speaking with journalists in Ilorin, chairman of the KWACOBPA, which comprised of over 21 professional and business associations, Alhaji Olalekan Fatai Ayodimeji, said that businesses today, in Nigeria, are endangered.

“The large and medium companies are in dire need of foreign exchange (forex) for their raw materials and machinery and now the nano, micro and small enterprises are struggling to get the local currency for their business operations. A tough situation indeed. The reasons adduced by the CBN for the naira redesign are understandable but implementing the same alongside the cashless policy is worrisome,” he said.

The KWACOBPA chairman, who bemoaned the effects of the cashless and Naira redesign policies on the state economy said that nano, micro and small enterprises lose at least N30 million per day in Kwara state and about $ 18 million lost in the country in general.

“Go and see those selling onions or tomatoes, for instance. They bring these goods from the north, hired vehicles and all that. On getting here because there's no cash and he had to go back to his base after three or four days to replenish and take stock, he is now being forced to sell those goods at very ridiculously low prices. The same thing is being experienced by architects, building engineers and contractors as labourers who had to be paid in cash where there's no cash would jeopardize the contracts. The president of the pharmaceutical society of Nigeria has also said that the policies could affect a fall in life expectancy among the people.

“And someone would come out to say one of the effects of a currency swap is a drop in inflation. That's what I call silence of the grave. That's not a drop in inflation. What will come after it will be more than that. We call on the federal government to make the old and new Naira notes to be spent concurrently together if they know they don't have enough to go around the people,” he said.

The association, however, noted that efforts were being made to ameliorate the unpleasant
the situation called on the CBN to redouble its efforts at providing and ensuring the widespread circulation of the newly redesigned naira notes.

“The CBN should also support other alternative financial payment solutions.”

The KWACOBPA chairman also said that the subsidy on fuel (PMS) should be removed, adding that, “the subsidy amount would be better used to provide the infrastructure that will add value to the nation's economy and lessen her challenges.

“In the meantime, we appeal to our members and indeed all Nigerians to be calm and continue to be resilient as this 'hard time' shall soon pass.

“KWACOBPA also noted and commend the decision of the Kwara State Government to extend palliatives to small businesses and students in the State in the form of cash grants and free bus rides to alleviate the current situation.”