The Nigerian economy has started recovering from the three-month-long naira scarcity, but there is another brewing risk of a possible banking sector collapse as customers shun cash deposits.
Financial experts, while revealing this said the development is a spill-over effect of the Central Bank of Nigeria’s purportedly poorly implemented Cashless Policy, which caused Nigerians untold nightmares and hardship.
However, CBN’s massive evacuation of banknotes to commercial banks on March 24, 2023, had served as the antidote to the currency crisis challenge, though many Nigerians described the move as late.
Policy analysts say the respite looks short-lived, following a heightened tension of banks’ insolvency amid customers declining steam to deposit cash and conduct other transactions.