How CBN cash policy hurt beggars and stopped leaving tips

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Most Nigerians experienced extreme hardship during the two-month cash crunch.

The policy was implemented by the Central Bank of Nigeria (CBN) to support the Naira, stop money laundering, and prevent vote-buying in the general elections of 2023.

The new policy would help to reduce the use of cash for illegal activities like banditry and terrorism financing, the apex bank had further explained.

People who have earned money illegally may be reluctant to declare it because they fear that the Income Tax Department will investigate whether or not their income is legitimate, according to the CBN.

The new cash policy will prevent vote-buying during the general elections in 2023, according to President Muhammadu Buhari.

In the midst of the cash crunch, Buhari told Nigerians in his speech that the policy will make a significant contribution to reducing the influence of money in politics and lay a solid foundation for free and fair elections.

The EBANTAL’s research reveals that beggars, who typically depend on alms for survival, were the group most negatively impacted by this policy because they found life during this time to be intolerably difficult.

Giving tips to bank security guards, nightclub bouncers, waiters, cleaners, gatemen, and donations to churches all drastically decreased.

Nigerians were compelled to use cash transfers and point of sale (POS) to pay for goods and services during this time.

Over time, the number of begging people in the country has increased due to the high poverty rate, which keeps over 65 percent of Nigerians below the poverty line.

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The majority of Nigerians rely on assistance from others to support themselves.

Enewo Nzenwa, an Abuja-based businessman who told EBANTAL that he always tips beggars and gives money to his gateman and people nearby, claimed that during the relevant time period, he was unable to give because it was difficult for him to obtain cash.

He asserted, “There is no money. I run a business. I sell electrical appliances, and my clients can make payments by transfer or POS. It is now difficult for me to give alms because I cannot even get cash to buy the basic necessities I need. I cannot get cash even when I most need it. “.

A bank security guard who only gave his name as Charles lamented the circumstance and said it had not been simple dealing with the cash shortage.

“You know one good thing we get from this job is the little change people give us, but since this cash problem started, we honestly never see money like that. Na just God dey help us, many of our clients who give us tips simply dey tell us to tell dem to come see us when cash dey, e no easy, how do they want to show us love? He uttered this in pidgin.

Charles’ assertion is supported by a waiter in Abuja who claims that the use of POS to buy food has reduced the amount of tip money they receive from kind customers.

“On a really good day, I could have received up to 3,000 tips from local clients, but the financial crisis ruined everything. Even those who only have up to N100 in cash who visit us always use our POS; they will hail you and say they’ll see you again. It has never been this bad for us; I blame the Buhari administration. Nevertheless, I think things will improve. “.

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The hardship brought on by the cash crunch, according to a roadside beggar named Zainab Aminu who spoke Hausa, is difficult to bear.

“Alhamdulillah, a few weeks ago, I cried because, despite spending hours in the sun, I did not receive any money for three days. I only feed my kids in this way.

I used to be able to earn enough money to feed myself for two days before the cash problem, but now people just apologize and pray for me. I was sad because no one wanted to take my old notes, but thank God I can still use them now. I also had old notes.

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