Nigeria could face macroeconomic instability, loss of investor confidence and distrust in the financial system, should the current cash crunch arising from the naira redesign persist, the Nigerian Economic Summit Group has warned.
Other possible consequences of the crisis include restraint on both local and regional trade and constraint on the informal sector, the economic think tank said Friday in an emailed statement.
To avoid these possibilities and achieve a successful currency redesign, the monetary authorities should adopt a gradual phase-out of the old notes; expedite the printing of new notes as well as intensify public sensitization and strengthen the digital infrastructure.
The group’s statement came as protests against the CBN’s currency programme spread further, threatening to engulf the entire nation.
On Friday, protests spread across Lagos and Ogun states, with protesters barricading highways.
Previously, the protests had been violent in Edo and Delta states, with some casualties recorded.
Several bank facilities, including buildings and ATMs, have been torched by irate customers who felt frustrated over their inability to access their funds in the banks.
“The cash scarcity associated with the currency redesign policy will likely motivate a slowdown in economic growth as many productive activities have been halted due to the inability to access cash,” NESG said.
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