CBN Naira Currency Scarcity – How to Cope with the Cashless Policy

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It’s no longer news that the CBN Naira currency scarcity as a result of the redesign policy has received mixed feelings from bank customers – both individuals and corporate businesses out there.

In truth, the policy might yield good results in the long run; more especially in controlling the level of cash commercial banks have to distribute to their customers and ensuring that the CBN and other commercial banks maintain a specific reservation.

On the customers’ side, it will help in terms of security from robbery attacks. For instance, if someone steals your ATM card, they can’t go above the limit that day, thereby giving you enough time to block the card.

A deadline of February 10th was set by the CBN for people to deposit their old notes (200, 500, and 1000), and also instructed that it seizes to be legal tender from then.

But given the untold hardship faced by the masses as regards this policy, President Muhammadu Buhari stated that only the 200 notes will be released and used till April, with the higher denominations of 500 and 1000 seized to be legal tender.

But the issue people are facing is the inability of the CBN and commercial banks to disburse enough cash. And as a result of this, there’s been a series of crises witnessed across the country. Some banks have witnessed vandalization, while others shut operations due to physical attacks on their staff and properties.

Currently, as it stands, citizens have witnessed untold hardships as a result of this policy. It’s not necessarily about the withdrawal limit itself, but the sufficient cash has not been made available for people to get their daily needs or even carry out their daily businesses.

It’s been worse in the rural areas as those living there have been suffering double what the urban dwellers are suffering at this critical time of our nation.

The Supreme Court’s ruled that the old notes be released to the public, and allow to circulate alongside the new notes for at least till December 31st, 2023.

Even at that, people are still left in limbo as neither the CBN nor the president has come out to give the official order for commercial banks to follow.

How to Curb the Harsh Effects Posed by the CBN Naira Currency Scarcity

The major issue people are facing currently, especially businesses is not even about the cash available.

Some businesses have adjusted to the cashless policy and the effect of the CBN Naira currency scarcity. And as such, have adopted a money transfer payment method, to ensure that their business moves forward.

Currently, there’s been incessant network issues on mobile banking apps, which has even made it more difficult for businesses to operate.

Now, you ask yourself “How can I process a transfer payment after buying what I need when the network is down?” Well, I think the best way to solve this issue is to adopt different payment methods.

For businesses, I’ll advise you to go for POS machines (if you’ve not yet started), so you can start accepting card payments. This proves to be more reliable than transfers.

How do you go about this?

  • All you need is to visit any bank branch and request for an “Agent Account”
  • Get the form, fill it out, and ensure that you’re being given a POS terminal to start agency banking with the bank.

Remember, you’re entitled to a commission depending on the volume of transactions you carry out. For instance, with N20,000 transaction where you charge customers a fee of N200, N100 will be added to your wallet as a commission from the bank.

So, you can see you’re not just helping your business move in this hard time, but you’re also earning commission from the bank as well.

Other secondary banks are issuing POS terminals. Moniepoint, Opay, Palmpay, etc., issues out POS to clients. So, there are options available for you.

How to solve the transfer issues

The only way you can solve this issue is to use alternative options. There are platforms available where you can sign up and process your transfer payments.

With this, you don’t need to depend on your bank’s mobile app, cos they’re bound to disappoint at any time. So, you should have other options available that you can switch to when there’s a payment emergency.

Read Also: How Business Registration Works in Nigeria

How to use the mobile payment platform

I’m going to teach you how you can sign up, and add your bank account or debit card for easy payments. Just like I told you, you must have alternate options so you won’t be hooked.

Since Opay has become one of the most popular platforms in the online financial market, I’ll be teaching you how to use this app for your transactions:

Firstly, you need to download the Opay app. For Android users, you’ll need to click this >>> link.

For iOS users on the other hand need to click >>> here.

Once the app is open, you can click on the “Me” icon.

Select “Sign in” at the top left side of the tab.

Click on “Create a new account.”

Now, enter your phone number and click on “Get OTP.”

  • A verification 6-digit OTP will be sent to you. Enter the code and click on “Confirm.” Remember to tick the terms and conditions box.
  • The next page is where you’ll have to set your password. Enter a 6-digit strong password, re-enter it, and click on “Done.”
  • There’ll be face authentication, where your image will have to be verified to ensure that you’re human.
  • Once your face is detected, you can now move to the next step.
  • The next stage is where you’ll have to enter your means of ID (BVN, NIN, Phone Number, Bank Account, Voter’s Card, or Driver’s License).
  • You can click “Skip” to move to the next step to enter your personal information (Full Name, DOB, and Gender). Then click “Next.”
  • Enter your current Address and click “Done.”
  • You can decide whether to enter your email address or not. If you enter the email, a verification code will be sent to you. Enter the code and click “Verify.”

How to top-up your new Opay Account

Now, before I go ahead with this, I want to inform you that your Opay Account Number is the mobile number you used to sign up, with the full name you filled in as the Account Name.

You need to fund your wallet to make it easier for you to transfer anytime and anywhere. Although, you can send it directly with your bank details or debit card. But should in case you’re not with your card, you need to fund the Opay account ahead of time.

All you need to do is to click on “Add Money.”

There are a series of options you can use. You can use Bank Transfer, where you’ll have to copy your Opay Account Number and then transfer from your main bank account to the Opay. Or you can use the “Top-up With Card/Account” option.

Enter the amount you want to fund.

Click on “Add new payment option.”

Select either Debit Card or Bank Account. For Bank Account, you’ll need to select your bank, enter the account number, enter your BVN, and then click “Confirm.” For Debit Card, you need to enter the card details (16-digit card number, validity, and the CVV number), once you’re done, click “Confirm.”

A verification code will be sent to you. Enter the code and click on “Complete Registration.”

After that, a pop-up message will show “Payment is successful” while your bank account will be debited and the Opay account credited.

How to Transfer

You have to click on “Transfer”

Choose whether you’re transferring to a Bank Account or another Opay Account.

For Bank Account; click on Select Bank to select the bank you’re sending the money to, then enter the 10 digits account number (the account name will verify and pop up), then tap “Next.”

Crosscheck the account details you’re transferring money to, and then click “Confirm.”

Now, you have to select the payment method. Since you’ve already added money to your wallet, you can just select “Balance” and click on Payment.

You’ll be asked to enter your Payment PIN. You’ll need to create a 4-digit pin since it’s your first time.

Once done, your transaction will be successful.

Conclusion

The CBN Naira currency scarcity has already disrupted swift cash transactions amongst businesses, but your ability to navigate through in order to sustain your business is all that matters.

I understand the fact that it’s been difficult because of banks’ network issues to initiate cashless payments. But having provided you with a perfect alternative, you have nothing to worry about.

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