As President Bola Tinubu makes frantic efforts towards reviving the health of the economy, Nigerians are increasingly avoiding keeping their money in nthe banks. Every one is holding on their their cash.
The economic situation in Nigeria is expected to improve, yet it has not given the ordinary Nigerian a reason to smile.
Immediately after subsidy removal, the price of most commodity in the country increased astronomically.
Reports from the National Bureau of Statistics, the Consumer Price Index, among others confirmed that inflation keeps pushing upwards.
Sadly, the purchasing power of Nigerians ahs been dwindling, with salaries constant in the face of food inflation and petrol price hike.
Reasons Why Nigerians Are Holding To Their Cash
Reacting to question on why Nigerians are holding on to their cash instead of depositing them with banks, a business analyst, Charles Fakrogha, said “Nigerians have learnt in a hard way”.
Fakrogha explained that Nigerians have not forgotten in a hurry how they were messed up when the Central Bank of Nigeria (CBN) introduced it’s cashless policy in the first quarter of year 2023.
He said the CBN and the commercial banks were yet to regain the trust of Nigerians.
Experience Is The Best Teacher
The business analyst said: “This is not a surprise to me that they are holding on to their cash, because I’m aware of the terrible experiences that people faced during that cashless policy era”.
Fakrogha is of the opinion that subsidy removal coupled with the unification of the multiple exchange rates has contributed to the growing inflation.
Again, he said; ” I would not blame the average Nigerian holding on to their cash because of how they were treated by the Nigerian financial system”.
He, however, advised the CBN to create an awareness that they will perform their statutory role as expected of them in the financial service system to the average Nigerian.
Nigerians want the CBN to do everything within it’s power to ensure price stability and protect their interest when it comes to finances and their money.
Banks Have Failed Us
The CBN should put pressure on the commercial banks to improve their digital infrastructure so that people can have trust and confidence in these platforms
People are holding on to their cash because of their past experience with these banks, and you know what they say “experience is the best teacher”.
One of the duties of the CBN is that of monitoring the level of cash in circulation.