Franca Christopher sells pastries in Abuja’s Central Business District. She has successfully plied this trade for seven years. She is a mother of eight children. She is accustomed to selling pastry and cold beverage she places on display while shielded from the scorching sun by an umbrella in a prime location between large banks, the taxi park, and the Central Mosque.
According to Franca, she was used to making between N30,000 and N35,000 everyday through sales. Franca for many years, used the profit to pay for her children’s education.
Like many other women who are into sustenance businesses to get by, the introduction of the cashless policy by Nigeria’s Central Bank of Nigeria (CBN), nearly destroyed the small business she runs with her spouse.
“The lack of money had a big effect on my business. It got to the point where I won’t see anyone buying pastries because there’s no money,” she laments. “The ones that had to buy couldn’t pay because the online transfer was not functioning. There was no network, and even if they do manage to transfer, you won’t see alert and the business was significantly slowed down.”
The frustration birthed by the cashless policy, forced Franca to source for money and get a Point of Sale (POS) machine. “I did this to keep my business going, although it did not solve the problem at all,” Franca says.
“Going to the market to replenish on the supplies we need to make the pastry is another awful experience. The sellers will not accept transfers. So, what usually takes me an hour to complete will take me five or six hours.
“This cash policy made a negative significant impact on my business since there is no money. It came to the point where I will not see anyone patronising me because there is no money. The online transfer was not working. There was no network, and even if they succeeded in transferring, you will not see the alert and it greatly slowed down my business,” she recalls.
Explaining the difficulties in getting replacement for her goods, Franca notes: “Another horrible experience is when I have to go to the market to restock the items we use in making the pastry. What will normally take me an hour to conclude will drag for five or six hours because the sellers will refuse to accept transfers. I have to search for cash at an exorbitant rate because the sellers won’t take transfers. As a result, the business became extremely boring. But since it is the only thing we have to support our family, we must find a way to continue operating.
“Additionally, I am often forced to sell on credit because these are perishable items, or I will be forced to toss them away or consume them. Though the policy has been reviewed, small businesses run by women like me have suffered.”
Ifedayo Ogunsola has been operating an eatery since November, 2019, but she was forced to close down when COVID-19 hit in 2020. When she was just beginning to recover from the effects of COVID-19, the cashless policy was implemented.
“Every part of the business has been affected,” she says. “From her employees who were unable to go home or those who were stuck at home due to lack of funds to travel to work, to customers who made payments, but do not receive alerts, to buying from suppliers or the open market, it has been a vicious cycle,” she says.
“Now, for instance, some of my staff were stuck here. Sometimes they could not go home because transporting themselves home was difficult. The taxi drivers did not collect transfer, because sometimes they didn’t receive the notification on time or their money at all on time, maybe for a few days.
“So, what I had to do was harass everybody. I knew I had small amount of cash like N500, N200, whatever my friends had, I will take off of them, gather it together and then gave those that were here, N500 each to go home. And then the people that were home managed to come to work, we will also give them,” she says.
Ifedayo explains that during the tough period of the cashless regime, she had to improvise in her restaurant for staff to pass the nights since there was no money to take them back home.
Ifedayo says “sometimes we didn’t find any cash. My staff were stuck here for days. II didn’t have a facility to house all the staff here. That was never the plan. So was only able to house a limited number of people because we ran into the night. So, we had a staff room where they slept overnight. But that was just limited for them to be able to sleep and go home in the morning.
“We struggled because we had more people staying over who couldn’t go home because the amount of money it cost them to buy cash to come to work was not worth it. You earn and then you spend more money getting money to come to work. It didn’t work for them.”
Halima Muhammed, a 25-year-old single woman who lives in Karonmajigi Village along the airport road, In Abuja, Nigeria’s capital, is the family’s primary provider and supports her four siblings with the money she earns from selling clothing and cosmetics. She runs a store in Karonmajigi.
Like many women who operate small businesses, Halima had a bitter experience during the harsh implementation of the cashless policy by the CBN. She explains that prior to the policy, she got between N30,000 to N40,000 daily. “But now, however, I make roughly 15,000 Naira on a bad day.”
She explains: “Prior to the implementation of the entire cashless policy, I was making, on a good day, between N30,000 and N40,000 per day. But, business has not been good at all lately. The majority of our customers choose to pay with transfers, and most of the time when they do, even if they display a debit alert, you won’t receive one. This cashless approach has caused me to lose a lot of money. The client advises you to contact your bank. Going to the bank requires cash, and when you do, the line is unfathomably long.
“Occasionally, you learn at the bank that the funds had already been returned to the client. At their point, you had already supplied them the items. When you try to contact them they, won’t pick up once they realise it’s you. I have completely stopped accepting transfers because of this. I asked them to make a transfer at the POS. Because they do not want to pay charges, some of them refuse. My customer base has really been affected by it. I am not married. I singlehandedly care for myself and four siblings. I am the bread winner.”
She also lamented the transport difficulties she faced as a result of the policy.
“Transportation has not been easy for me at all. The last time I went to the market, I had to stand on the road for more than an hour until I was able to get a driver that would accept a transfer. Even in the market, they charge us extra when we pay with transfer. If I buy something of N10,000 for instance, I have to transfer N10,200 to the person. If its N2,900 they collect N30,000,” She says.
On how she manages to feed, she says: “I is transfer that I use to buy food. I have a Neighbour here that sells food stuff. So I collect food items from her and pay in installments as the money comes in. If I have 5,00 Naira for instance, I give her. When another money comes in I give to her until I am able to pay up. That is how we have been surviving.”
Ene Fred is a 42-year old hair stylist and a mother of three children. She resides in one of the villages along airport road in Abuja. She says she and her husband during the CBN policy, turned to credit purchases in order to support the family because the policy significantly reduced their incomes.
According to her: “I was collecting things on credit to sustain my kids and family. I had resorted to buying on credits. I begged those I knew who sold those essentials I needed to give me on credit and once I made some money, I transferred to them.”
“My business was doing well before the naira scarcity. But these day, some customers will come and after making their hair, they will say they want to do transfer because they do not have cash. A lot of times, after the transfer, I won’t see the money. They will show you debit alert but you will not receive the money at the end of the day. People hardly patronise us these day. Some will come and admire the weavons in my shop but won’t buy because they do not have money. To even eat is a problem. No cash to buy food because most of the food vendors insist on only cash payments. We are really suffering.
“A transfer was made to me, but I haven’t yet received the 5,000 Naira, so it’s presently hanging in the air. I do not even have cash for transport fare to go to the bank and lodge a complaint.
“I used to make N4,000 to N5,000 daily especially during the weekends when most of my customers have the time to make their hair. But these days, I barely make up to 1,000 in a day.
“I have been buying goods on credit to support my family and children. I beg my acquaintances who sell the necessities I require to offer them to me on credit, and once I have some money, I transfer it to them.”
Aisha Muhammed, is 37 years old. She is a mother of five and lives in one of the villages in Abuja. She makes dresses and sells fabrics in a makeshift shop by the roadside. She claimed that whereas her weekly income used to range from N10,000 to N15,000, she now makes almost zero sales.
“I used to make 10,000 to 15,000 Naira on a weekly bases. Now when I come on some days I just sit idle all day because there are no sales or clients bringing clothes to be sewn.” She stated.
“I have five children and it’s has not been easy caring for them at in this period at all. Most times when we need for or drugs and there is no cash we have to beg people to give us on credit and we pay later,” she says.
Amaka Okechukwu runs a restaurant business at Gudu junction in Abuja. Her focus is on beans, roasted yams, plantains, stew garnished with cow skin popularly known as ponmo and sometimes fish.
Before now, Okechukwu was a happy businesswomen who was augmenting what income her husband who is a commercial cab driver brought.
But since the new policy of the CBN, her livelihood has never remain the same. The mother of five children laments how she finds it difficult going to the market to buy ingredients to run her business because of the cash scarcity.
The indigene of Imo State, who looked visibly upset, added that she had lost most of her customers because of failed electronic transfer of cash.
The 39-year-old said: “My husband is a cab driver here in Abuja. In order to augment his daily income I opted to sell beans, roasted yams plantains and stew. We were doing fine. When I say fine, I mean we were no lacking anything. Our children were feeding very well. House rent was not a problem.
“But this policy has a taken a toll in my home. Most customers, after eating make transfer to me. I do not get the alert. And because of our long-standing relationship I let it go. But for how long will I continue to allow my money go?
“The place I go to buy plantains and beans, those selling most times reject transfer because of similar experiences they have had. It is difficult.
“Transportation is another hurdle I battle with. It is not everytime my husband will leave his job to take me to the market, wait for me to buy things and bring me back home. And when I decide to take a cab, it costs more. Also, I have reduced the quantity of items that I sell.
“As if our plight is not enough, tax force are giving us problem. They demand for cash as if they have it. When we suggest that we should do transfer, they do not agree.
“What do they want us to do? When you tell customers to use a commerical Point of Sale (POS), they get angry and leave. Something should be done about it.”
Nkoli James, who is into sale of local delicacies made from Bambara nut, profusely decried the negative effect of the cashless policy. James, who lost her husband two years ago, said she had cut down on the quantity of nuts she buys because of the situation.
The mother three highlighted transportation, high cost of ingredients and poor sales as her major headache affecting her business.
According to her, sometimes before 2pm she had sold everything, stating that it is no longer business as usual. The 40-year- old indigene of Enugu State, ruled out the purchase of a POS to facilitate her trade.
She says: “How much do I sell a day that would warrant me to purchase a POS for N25,000? Even most people who paid for it are yet to get it. The cashless policy is not favourable. The cost of transportation has increased.
“Drivers will insist on getting alerts before going to anywhere. In most cases, they will not receive it because of poor network. Your business suffers while you wait.
“In order to avoid unnecessary delay I take to trekking at least to a distance because boarding a cab.”
The ordeals of Okechukwu and James is not different from that of Blessing Abuo, who owns a hairdressing saloon in front of Efab Estate, Abuja.
Abuo, 29, complained bitterly of the biting cash crunch, saying that patronage has dropped. The graduate of Theatre Arts, University of Abuja, recalled how she wanted to close down her shop because of her inability to order for wigs and human hair to continue her business.
“Did you see a single customer in my shop as you came in?”, she asked. Everybody is complaining of poor network. I applied for POS since last month and I have not gotten it.
“All I hear is promises upon promises. Most of my customers are going else to make their hair because of the problem. Last January, I wanted to close my shop. It was and it still difficult to get cash to pay for wigs and other hair accessories.
“I made transfers to my customer and she said she didn’t receive it. I am doubting and she is also doubting me. This problem is orchestrated by the cashless policy. Government should reverse it. It is not helping matters,” she says.
Victoria Egbe who sells banana and groundnut at Wuse Zone 3, Abuja, says the cashless issue affected her business greatly in a negative way.
Egbe, a 38-year old mother of six children, says her banana business suffered a great setback as a result of the cash crunch, even as she lost customers.
She says: “I am like the breadwinner of the house because my is not doing much this time. Before the cash crunch, I used to collect goods worth N50, 000 to N70, 000 from my customers in Zuba on credit, and finish same within a week. But since the cash crunch started in January, I could rarely make sales because my customers would come and desire to buy but will not have cash to make payment. It’s obviously not their fault.
“Initially, I used to decline transfer because I don’t have access to bank account. But at a point, it became compulsory that I open an account because I was losing customers and my goods were spoiling, and my family livelihood was suffering.
“I was forced to strike a deal with a nearby POS operator so he can be collecting my money from my customers with often offer to pay with their debit card. At the end of the day, he will transfer the collated money to me.
“The challenge I had was with my two sons that often join me in the sales. They move from one location to another hawking the banana. They had serious issues understanding the fact that there was cash crunch and people are have changed their taste and priorities. They also failed to understand that customers use the available cash for main necessities. So, I was forced to open bank account and write down the account number for them to give customers who would prefer to make transfers.
“Another challenge I have again was the fact that some ‘wicked’ customers have deceived them with fake alerts. They would claim they made transfer but not true. Now, each time a transfer is made, they call me to confirm if I got the alert.
“In addition to that, I asked them to also collect the customer’s number and name, so we can reconcile the transactions after sales for the day. I clearly understand that network could be bad and make it possible for transfer not to drop immediately.”