Small business operators under the Micro, Small and Medium Scale Enterprises (MSMEs) umbrella have urged the Central Bank of Nigeria (CBN) to review its cashless policy to foster business growth. Segun Kuti‑George, National Vice Chairman of the Nigerian Association of Small‑Scale Industrialists, lamented the recent cash scarcity and emphasized the need for a comprehensive review of the policy. Although the CBN reversed the cashless policy on Thursday, Solomon Aderoju, National Vice President of the Nigerian Association of Small and Medium Enterprises, warned that the hardship faced by MSMEs during the cash crunch remains severe and called for a full reassessment.
Femi Egbesola, national president of the Association of Small Business Owners of Nigeria, highlighted the multitude of challenges confronting micro and small enterprises. “It’s unfortunate that we have a myriad of challenges bombarding micro and small businesses at the same time,” he said, noting that many small businesses in Nigeria still rely heavily on cash, whereas larger firms have largely shifted to online transactions. Egbesola’s association conducted a study on the impact of naira scarcity, which found that 19 percent of small businesses had shut down as a result of the cash crunch, with many others on the brink of closure.
Peter Popoola, a member of the Nigerian Association of Small and Medium Enterprises, added that SMEs are struggling to stay afloat as sales have dropped dramatically. Supporting this view, the Lagos Chamber of Commerce and Industry pointed out that the Nigerian economy remains predominantly cash‑based, with over 80 percent of transactions by volume conducted through physical exchange of the naira.
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