In Nigeria today without a doubt, every aspect of our lives (personal or business) has been impacted by the new era of cashless and new Naira banknotes as promoted by the CBN under governor Godwin Emefiele. Since finance is the bloodflow in the veins of every establishment (churches, businesses, etc), we can all feel the drastic change. Hence the need to adapt quickly.
Currently, cash-based transactions are being phased out gradually. The amount of cash in circulation is dwindling rapidly. The old banknotes are now being rejected even among the populace, in preparation for the February 10 2023 deadline. Without being told, come on, cashless is here.
As of October 2022, the currency in circulation in Nigeria was about N3.23 trillion; out of which only N500 billion was within the banking industry and N2.7 trillion held permanently in people’s homes and hands as cash. But within two months following the Naira Redesign and developing cashless, over N1.9 trillion has been recovered into the banking system according to CBN. This leaves the cash in circulation reduced to a historic minimum.
HOW TO ADAPT QUICKLY
Our finance needs as businesses or as individuals revolve around three major aspects:
1. Payment needs
2. Collection needs
3. Store of value needs
Adapting to new PAYMENT methods
In this new era, making payments with cash is no longer in vogue. Its becoming outdated. You don't even get to hold as much cash because its very limited in circulation. With the ATM, individuals get to withdraw only N20,000 per day or so, if permitted by your bank/card issuer. In order to adapt quickly and ensure you don't fail at your payments responsibilities, it has become important to embrace the following products from best banks ASAP:
1. ATM cards
2. Mobile apps
3. USSD and
4. Internet banking.
With these, you sure can make payments seamlessly.
Adapting to new COLLECTION methods
Whether you're running a church where you collect tithes and offerings, or running a store/business where you offer goods and/or services in exchange for money, it has now become imperative to immediately deploy cashless, digital collection methods. Gone are those days when you rely on solely cash payments. The following solutions from banks and fintechs must be deployed for your business immediately:
1. Account numbers (to receive transfers) with alert sysyems - SMS, email
2. POS Point of Sale to receive card payments
3. QR / Scan to pay contact-less points
Adapting to new STORE OF VALUE methods
Brothers and sisters, gone are those days when you stored your excess money in cash inside kolo or in soakaway pits or bullion vans. You don't even get to see as much cash around!
To save your money, you now need:
1. Bank accounts (Aza)
2. eWallets
3. Investment securities (fixed deposits, treasury bills, stocks, bonds, etc)
4. Tangible assets (Real estates, property etc)
5. Trading/business
What next? Visit your bank today and request these products and services. Research the best banks with quality service, reliable infrastructure and superb customer support and go for it. Quit cold turkey if you must.
With the above strategies, you will adapt and possibly thrive during these uncertain times.
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