The World Bank Country Office in Nigeria has disclosed that
the incessant fuel scarcity and the inability of Nigerians to access the new
note may influence uncertainty ahead of the February 25 and March 10 elections
in the country.
According to a document obtained by Premium Times, the bank
disclosed the deadline for old notes will socially and economically affect
vulnerable people in the country.
Earlier, the Central Bank of Nigeria announced February 10
as the deadline for the exchange of old notes.
“The shortage of cash compounds fuel shortages which have
been ongoing for months.
“There is a clear risk that cash shortages cause hardship
and frustration which could escalate social tensions, especially in a febrile
political environment ahead of elections on February 25 (presidential and
parliamentary) and March 11 (gubernatorial),” the document read.
The bank further disclosed 45 per cent of Nigerian adults
had a bank account, 34 per cent pay or receive money digitally over the past
year, while nine per cent made an in-store payment by digital means.
It projected Nigeria would not be able to attain a quick
increase in digital payment to enhance the shortages of new notes across the
country within the stipulated deadline.
“At about 9 per cent of total transactions, the level of
digital payments remains very limited when compared to peer countries, limiting
the number of digital use cases for most people’s daily transactions,” it said.
It further advised considering data on the size of the
informal economy when promoting a rapid shift to digital payments, as informal
businesses might face challenges in digitising their payment acceptance without
undergoing a formalisation process.
“Digital infrastructure gaps (i.e., poor connectivity,
limited national ID coverage, etc.) and the payment system’s operational
reliability to absorb a steep increase of transactions from cash to digital in
a limited timeframe should be considered,” it said.
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