It is a freezing morning of the 28th of August 2023, the dawn embraces the earth. The campus of Usmanu Danfodiyo University in Sokoto (UDUS) reflects an atmosphere showing that the semester has come to an end. Some students bundled their luggage as they moved through pathways that led to motor parks in hundreds and thousands with euphoria.
While others were trooping out of the campus, Kewulere Abdulateef, 25, a 400-level education student of the institution, from Ilorin, Kwara State, and a self-sponsored orphan who survives only on tutorial was standing, stranded as he lamented the fate that befell him.
“You see, this would not have happened to me. I finished my exam last week, I ought to be at home by now but due to subsidy removal, I couldn’t afford the transport fares so I decided to stay and started writing my project but this morning my gadgets and bags were all stolen,” he lamented.
Abdulateef’s hope of writing his projects before resumption was now dashed leaving him in despondency as the reality of his stolen phone sprang to life. He linked the occurrence to the subsidy removal and hardship that cramped the country as he faced double edged-sword — unable to afford transport fare; and loss of his gadgets.
“No money, everything is hard and people have to survive. The bus we boarded for N50 is now N150, here in UDUS. Had it been I have money I would have traveled to prevent this fate,” he commented.
Like Kewulere, Mohammed Taoheed also suffered the ripple of naira redesigning. In mid-February, 2023, Taoheed, a then 200-level Law student of Usmanu Danfodiyo University Sokoto read the memo that the school will be locked immediately after the examination and allow the students to exercise their franchise for the 2023 General Election. Taoheed decided to vacate the school environment but his preparation for the journey knocked disappointment and befriended frustration. “I had to go here and there looking for where to get cash to travel back after I finished my exams but I spent a whole day at the bank.”
The situation is still unbearable for many students to get new banknotes; as Taoheed is struggling to get new two thousand naira notes to balance the N8,0000 he had previously transferred. It took him more than six hours, wandering around like a sheep without a shepherd.
“Eventually, I met a student who offered to sell me an N1,000 new note at the rate of N2,000. I had to pay him with a transfer and Guaranty Trust Bank continued to deduct my money indiscriminately,” he lamented.
Toheed is among the many Nigerians bearing the brunt of the federal government’s action in redesigning the country’s N200, N500 and N1000 naira notes.
Although the federal government through the Governor of the Central Bank of Nigeria, Godwin Emefiele, had announced the redesigning of N200, N500 and N1000 notes in Oct 2022, to battle against corruption, prevent hoarding of the currency from the public, to reduce counterfeiting notes, increase financial inclusion and control inflation among other reasons. However, Nigerians are still feeling the wrath of the cashless policy.
Masses Suffered; Failed Promises
This reporter gathered that since the inception of the policy, Many Nigerians have been living in hardship, businesses have crumbled, banks burnt, patients are dying; villagers are struggling with depression while new banknotes are being bought in huge amounts.
Taiwo Hassan, a resident of Taberu in Baruten local government area of Kwara recounted the struggle they underwent in the rural area and how they would travel kilometers leaving and watching their businesses crumble. ” Transacting in business was a war. You see, there is no bank here even if we wanted to follow the suit by buying the new notes. We have to travel to the likes of Saki in Oyo State, leaving our business behind.” Taiwo said that it always took them about a week before they would get the Liberalised maximum amount of N100,000 daily and 500,000 weekly for individuals as pegged by the government during the cashless policy.
Not ending the wrath of scarcity of currency earlier in 2023, commenting further on the removal of fuel subsidy, he said they are currently buying the fuel at an indiscriminate amount of N900. ”Here, we paid N900 to get 1 liter of fuel.”
The federal government through the president of the Federal Republic of Nigeria, Bola Ahmed Tinubu, had also on Monday, May 29 during his inaugural speech, announced the removal of subsidies on petrol raising the price from about N145 to about N617– N1,200 depending on the location. The government of Bola Ahmed Tinubu stated that funds previously paid on subsidies would be diverted to other areas like public infrastructure, education, health care, and jobs.
Meanwhile, it is a sorry case for the public and civil servants. Since the policy came into effect, not less than 70 percent of Nigerians have been battling the hardship the policy brought — the federal government has refused to increase the minimum wage of N30,000.00 (about $39). The prices of goods and services have skyrocketed, worsening the economic situation and preventing students from being able to afford food and other basic needs. As their poor parents can not assist from their powerless incomes.
For instance, a 50 kg bag of rice which was around 40,000 earlier in 2023 according to Baba David Awodi, the Chief Executive of ‘Feel at Home’ Canteen, Sokoto is now sold at an average of N60,000.00. According to the Trading Economics data, Nigerian annual inflation as of November 2023, has surged to 28.9 percent; foods and beverages prices hit 32.6 percent; accommodation fees have skyrocketed; with tuition fees increased by an average of 100% in all Nigerian institutions due to industrial action; yet, minimum wage remained stagnant.
Although the government promised an increment by N25,000 for lower level; which will run for just six-months; N35, 000 for civil servants. However, this reporter reached out to workers in different states, and he gathered that such promises were halfway fulfilled.
Mrs Mujidat Adeleke, a teacher at Ansar Ud Deen Primary School Saki confirmed that there is no bailout for low-grade workers. However Oyo state government is giving N25,000 palliative which will run until March.
Investigating further, in Kwara State, the workers neither benefit from palliative nor from the increment promised. “We haven’t received the increment ever since the promise,” Balogun Ibrahim, a civil servant from the local govt told this reporter.
Mr Dele Alake, the current Nigerian minister of Solid Minerals, once disclosed that the president was working to provide buses that would be conveying students, “President Tinubu has also approved the removal of all restrictions on student loans to make it available to every student or household that may desire it”. Meanwhile, Months after the said statement, there is no development as regards that.
As the problem heightens, Dauda Ridwan Olalekan, a 300-level student of English and Literary studies at Ahmadu Bello University Zaria, said that the rationale for the naira redesigning and subsidy removal in 2023 has been defeated.
In his words: “Due to the fuel subsidy, the price of commodities has skyrocketed and that has affected us. Most importantly, in the aspect of feeding: one will spend N1,000 daily and it’ll not be sustainable, leaving many students to drop out while some parents lose their jobs.” Ridwan said that printing of assignments and photocopies is now around N30 compared to N10 or less prior to subsidy removal while coursework is expensive.
Restates that the situation is affecting students’ mental health and the government should not have allowed it. “It is affecting psychologically by charging one to source for money that will meet sustenance, the thought of which leads to lack of focus as more attention is being paid to seek money,” he complained.
However, Boluwatife Oluwafisayo, a union president at Ekiti State University, affiliated with Emmanuel Alayande University of Education said life is tough but Nigerians have to make sacrifices.
“Means of livelihood is tough. Prices of goods have skyrocketed. It’s crazy, but I am more committed that this is one of the sacrifices we’d make as a nation if we truly want the change we desire.”
Healthcare Crisis; Students Struggle
Taiwo Akanni, (not real name) became ill during the exam period, finding the pain unbearable; he could not continue his papers with such ill status. He had to consult a doctor but the cashless policy prevented him from getting medicine at a pharmaceutical store.
As a result, Akanni opted to visit the UDUS school clinic, which was farther from his residence but provided free treatment. Despite receiving medication after hours, he faced the unfortunate circumstance of being unable to access food from morning until 8:00 pm. This hindered him from satisfying his hunger and taking his prescribed medications.
“I think this is the worst and hardest challenge I had as an undergraduate,” he said. “It was February 17th, I was sick and woke up without food. I had an exam in the morning. I decided to take the exam first to get food later.”
He disclosed having funds in his account, but vendors and chefs refused to accept transfers. “I endured hunger throughout the illness until approximately 8:00 pm when I earnestly pleaded with a woman selling Tuwo at the school hostel for food, assuring her I would repay later,” he narrated.
To Ridwan, the Naira redesigning and subsidy removal is a double-edged sword that takes a toll on Nigerian lives, mobilities and academics. He told this reporter how he almost fought a Point of Sale (POS) agent on his way to Ibadan, Oyo from Zaria, Kaduna.
“We were taken to one POS guy within the terminal, we wanted to withdraw thirty thousand naira N30,000 and the guy refused to give us up to that amount. He said the highest he can give is N5,000 per person. My friend and I agreed to do it separately and collect N10,000 naira but the guy said he’ll be collecting N1,500 on N5,000. I was shocked and shouted, even the church collects 10% for tithe,” he recounted.
Ridwan recounted that the encounter almost resulted in trouble that day. “I was determined to beat the guy because what he was doing was clear exploitation. To be frank, we later got the cash with N3,000 naira charges on N30,000 which approximate with a tithe,” he narrated with a burning heart.
‘My business is on hold again,’ Abdquadri Olagunju, a student entrepreneur
These days, due to the hardship the policy had brought, many entrepreneurs experienced crumbliness in their various businesses.
Abdquadri Olagunju, a 300-level microbiology student and self-sponsored student who survives on his bread and data business told this reporter how the brunt of the policy hunted him.” The hardship I underwent before acquiring cash to leave the campus still haunts me. With great difficulty, I managed to gather N3,000, which I paid the driver; arriving at my hometown, Ilorin, despite having over N20,000 in my account, the cashless situation compelled me to trek for miles from Oko Olowo to Omoda, carrying heavy loads on my head and hand, as bikers refused to take me to my destination and upon reaching home I had to trek long distances again to find food, as many chefs in his community frowned at transfers.”
Financial Institutions Overstretched— Communities Struggle For Survival
According to BusinessDay, The CBN’s statistics shows that just N1.4 trillion in currency was in circulation in 2015. The total amount of money in circulation as of October 2022 was N3.23 trillion, of which only N500 billion was kept in the banking system and N2.7 trillion was kept in houses permanently. So this factor is put in place to curb insurgency and allow the circulation of currency among others.
However, the policy has led to a grave eruption of battles between individuals, financial institutions and Point agents. Since its inception, no less than three banks have been burnt with billions lost.
Saki, Oyo Nigeria, March 2023 — Rasaq Ayinla, a man in his 40s and an aluminum potter while speaking with this reporter in a worrisome tone said that although some goods prices have reduced, the difficulties and extra charges to get cash to pay for the goods are more harmful than the good.
“Here in Saki, motorcycles were sold at N370,000 before this policy but now it’s N300,000 which you have to pay in cash with the new currency.”
Similarly, Jamiu Akanbi, a cow dealer in Eko kan, Oyo while recounting to this reporter said that he transferred N160,000 to collect N120,000 new notes. “Point agent charged me a whole forty thousand naira on one hundred twenty naira transactions,” he said.
In a popular post, the veteran musician, PSquare; Paul Okoye lamented that he had to buy N40,000 with N70,000 at the embassy.
But Victor Ogundokun, the chief executive of Phonholast Multipurpose said that the surge in gas price is due to the hike in fuel prices and fuel becomes untouchable. “One of the reasons why gas prices are increasing is due to high demand. For instance, here, it has been more than six months since I touched fuel. We have reworked our generator; we are now using gas for power,” he explained how the hike compelled people to find alternatives.
Experts Weigh
Experts argued that subsidy removal may cripple businesses, worsen the economy and surge the unemployment rate– and this could be seen in the exchange rate and goods prices.
Meanwhile, Kingsley Ndimele, a Business Consultant and Economist explained that the decision was a very hasty implementation: as a result, the disposable income of citizens has taken a beating, which directly affects both parents, workers and students since parents’ incomes have not changed— leading to the purchasing power of the kids suffering a downturn.
“For instance, a student who is getting N20,000 will lose numerical value, as inflation reduces the student’s income. Cost of transport has made everything cost; pushing inflation: the sellers are going to place the cost on food and they will be selling at high prices.”
He advised that the government should have adopted other relief approaches; if the government put the money into economic growth and sectors, it would be the best decision but they should be as sincere, transparent and accountable as they can.
“The truth is that a palliative or refinery might be one of the options, but there should be a balance; It is either the government gradually removing the subsidy step by step or increasing the income of workers.
“Nigeria doesn’t have a sufficient data bank and if palliative is given it will eventually end in the hands of middle-income and political cronies. A new policy should have come with effective actions and alternatives. Moving people from N285 to N600 is too harsh, particularly for sensitive issues like petrol,” he commented.
Kingsley asked rhetorically how late President Yaradu’a managed to pay a subsidy with N65 fuel prices.
“The whole thing about subsidies still bothers on crude oil theft and the oligarchy process around the crude oil market. The issue here is not about the subsidy but thrashing out the fundamental issue. The government feels ripped because some capitalists transport the subsidized fuels, there could have been more dialogue approaches; they would have stopped the linkage than this hardship.”
He continued, “How did Musa Yaradu’a pay this money? It is about being able to block the whole theft issue. If the country can pay about N40 billion for cars for the tenth National Assembly members; and pay another N500 billion for the presidential yacht. If the president could do it, then they can also afford subsidies. And if that has to be removed, there should be an alternative system and the citizens should be able to see what the money is being used for even eventually.
‘Redesigning the note was not bad in entirety but timing defect,’ — Kingsley Ndimele
Kingsley Ndimele, said redesigning is constitutional but the approach was not appropriate. He said other countries did that in a space of years or so, even after a year they are still rolling old currency out and rolling in new currency.
“In times of timing, it was wrong, although the security features promised were good but the timing made it look like a scam. There is not enough currency flowing; and they instantly take out the old currency. People were cast out; Nigeria is a country living heavenly on a cash basis. 60 -70 percent of transactions are still cash – taking that away from people means they are leaving them handicapped – businesses are not going to do fine.”
Continuing, he advised that going cashless to reduce the volume of money and corruption should not have taken the spontaneous approach, it has to be defined in time of times; and that was why it was not successful.
“Network issues, bank issues, and transfer issues made it very difficult for people to embrace online transactions. Many businesses were down; Customers wanted to pay with cash but sellers refused to collect because no one would collect that from them also,” said Kingsley.
Moving forward, he enjoined the Central Bank of Nigeria should think of a more timely approach to this subsequently because Nigeria is a big entity, “policies that take a long time to implement should be given enough time. It was towards the election period and it’s like the federal government poured venomous wickedness on Nigerians,” expressed Kingsley.
Meanwhile, Peter Obilakin, studying Educational Management at Tai Solarin University of Education (TASUED) said the government would have at least increased minimum wages as the decision is making life unbearable for students and citizens.
“Everything has increased and means of income haven’t increased. Everything is hard,” Peter lamented.
