By Bassey Udo I
With Nigerias still grappling with the difficulties in getting the new Naira notes from banks across the country, Vice President Yemi Osinbajo on Friday lamented how the crisis has then a roll individuals and families.
Speaking during a meeting with some players in the FinTech sector in Abuja, the VP said the situation which has already disrupted normal family activities, as people need cash to carry out their daily routine.
Considering that most small business activities are largely informal and require cash, the VP said the CBN and deposit money banks must recruit more FinTechs and mobile money agents to help ameliorate the suffering of the people.
Specifically, he urged the CBN and the commercial banks to deploy more FinTechs and money agents with mobile money and micro-finance bank licenses and already have a network of mobile money agents in the hinterlands to address the worrying situation.
Highlighting the impact of the crisis on homes and small businesses, the VP said: “You need cash to pay for transport. For instance, in Abuja how do you take ‘drop or along, ’ or use a Keke NAPEP, or buy foodstuff on the road, or in canteens, or even buying recharge cards without cash?
“Parents with kids in public schools give money daily to their children for lunch. Most commerce is informal. So, you need cash for most things. ”
During the virtual interactive session, the Vice President urged the CBN and the commercial banks to work with all FinTechs that have mobile money agents, to reach the farthest places in the country.
The VP spoke just as President Muhammadu Buhari held a meeting with some All Progressives Congress (APC) governors at the Presidential Villa.
During the meetinh, the President assured Nigerians that the challenges associated with the new banknotes circulation were being addressed and would be resolved soon.
On other concerns resulting from the redesign of the naira notes, the VP said more disturbing was that after depositing their old notes with the banks, there are no new notes for the people.
“So, people everywhere in the urban areas and rural areas simply have no money to carry on their normal life,” the VP said.
Although the Vice President acknowledged the existence of logistical challenges that the 7CBN and the banks need to address, particularly from the point of view of the average Nigerian and those in the hinterland who hardly use any electronic platforms for transactions.
He observed that while there has always been a certain failure rate in online banking and money transactions, they have become even more difficult now with the increase in the number of transactions congesting the system.
“So, where in the past you used POS or any of the electronic payment platforms, you had maybe 20-30 percent failure rate.
“Now, because everyone is trying to get on those platforms, obviously, the failure rate is much more and the problems are much more pronounced,” the VP noted.
He thanked the participants at the meeting for their commitment and contributions, noting that “it has really been revealing listening to their thoughts about what was going on.
“We really need to make progress, even as we make efforts to deal with some of these issues confronting us today.”
In separate remarks, some of the players not only suggested ways to address the current situation in the country, they also offered to support the government at all levels with the required expertise to address the bottlenecks.
They suggested that USSD fees and the cost of data be reduced, while regulators should remove floor prices and called for relieving choke points in online transactions by cutting out some of the technical procedures.
