Business
“At Zidora, fidelity is our word; our word is our bond” – Mrs. Chioma Madueke, Vice Chairman, Zidora Group of Companies
Published
7 years agoon
In the Nigerian travel and tour industry, the name ‘Zidora’ is not new and anyone who claims not to have heard about Zidora, may be new in the industry. Zidora Travel and Tours, one of the subsidiaries of Zidora Group of Companies, is a key player in the travel and tour industry saddled with the responsibility of providing end-to- end travel and tour solutions to Nigerians. In this one-on- one interview, Mr. Chioma Madueke, the Vice Chairman of Zidora Group of Companies spoke extensively with the Managing Editor of Biznesswatch, Arthur Aghogho Eriye on the operations of Zidora Group of Companies; why Zidora Travel and Tours is the best travel agency in Nigeria, the uniqueness of its products and services, Zidora Aid Foundation among others. Excerpts:
May I meet you madam?
My name is Mrs. Chioma Madueke, I am the Deputy Chairman of Zidora group of companies. I am also the founder of women in real estate; I am the co-founder of Zidora Aid Foundation. I am wife, mother, entrepreneur and a philanthropist. I studied Applied Geophysics at the University of Calabar, I am also pursuing an MBA. I have an MBA in view and I am also pursuing a Degree in Law.
How long have you been in Business?
Well, I have been in business almost all my life because I have been involved in one form of business or the other even while in school. I have been involved in business at different level. I remember before my NYSC, I used to travel to India and Dubai to buy human hair, gold and fabrics and sell to my friends, colleagues and family members. It was when i got into Zidora and that I started business full time.
What year was that?
Zidora Consults was incorporated in 2013.All our companies were incorporated in 2013.
Was Zidora Travel and Tours also incorporated the same year?
Yes, basically, like I said initially, all our companies were incorporated in 2013.
What is the inspiration behind the name ‘Zidora’?
Zidora was birthed by my husband, Dr. Arinze Madueke, he is the Chairman and I am the Deputy Chairman of the group. So basically it is an acronym of our names and of that of our children.
What is your goal for Zidora Group of companies?
Basically, we are a product and service company. Our goal is excellence in everything we do. When it comes to services, Zidora group has different subsidiaries. Let me educate you a little bit. Zidora is a group of companies with subsidiaries like: Zidora Real Estates, Zidora Oil and Gas, Zidora Agriculture and Food Services, Zidora Travel and Tours, Zidora Consults, Zidora Pharmaceutical and chemicals and a non- profit arm of Zidora; Zidora Aid Foundation, which is a charity organization. In all of this, our goal is excellence. When it comes to our products, for example, we have Zidora Pharmaceutical; we have a lot of products. We manufacture here and we also import from India and Vietnam. We try to ensure that are products are the best obtainable in the market. Also, Zidora Services, we offer services in real estates, travel and tours services. We assist those that want to travel abroad; we assist them in getting visas, procure admission for those that wants to study abroad. We also help those that wants to travel abroad to book their flight tickets, basically all travel needs. All we are working towards is excellence in everything we do. That is our goal at Zidora; Excellence.
Nigerians love travelling a lot, and reading through the pages of the papers and the internet, you hear stories of travel agents been arrested and charged for fraud, but Zidora travel and tours has a money-back guarantee. What give you such confidence about the service you render?
Like I said, we are aiming at excellence, I got into travel business basically was from my own personal experience. Having traveled over the years, like I told you, I used to go to India and Dubai to buy gold, human hair and fabrics that I sell to people in Nigeria. And having travelled over the years, I noticed that there was something lacking in the travel business in Nigeria. Nigerians get denied visa a lot, even when they are qualified, meanwhile Nigerians are the biggest spenders abroad. When you go to UK, they are the big spenders the same thing with Dubai. In Dubai, when you see Nigerians buying gold, you will be scared, the white people buy just a little, but when you see a Nigerian buying good, you will be scared. They buy in bulk. They are the spender. If you go to Europe, Nigerians spend the most, if you go the US, Nigerians spend the most. These countries are looking for us, but for some reasons, Nigerians always get denied visas a lot. If you go to the embassy, you find out that out of 100 applications, only 10 visas are granted. But there people are qualified; they deserve to get the visa.
What would you attribute the visa denial to?
Well, I think, firstly it is wrong orientation, Nigerian don’t take their time in anything they are doing. Before, I got into the travel industry, I took my time to study the trend, I didn’t just get into it for money. I got into the travel business to solve a problem. That is how to you succeed in business, solve a problem and from solving a problem, you get paid. That is how I got into the travel business and that is what has kept us here through the years. First of all, we don’t promise what we not sure of. At Zidora travel and tours, we don’t promise what we are not sure of. Fidelity is our word, our word is our bond. We don’t negotiate it. When we tell you something that is how it stands. We are the only travel agency that has the kind of success rate that we have.
On a percentage scale, how would you rate the level of success you have had as regards visa procurement for your clients through the years?
On a percentage scale, the level of success we have enjoyed is basically second to none. We have a very high success rate. We don’t do visa racketeering. All our services are 100% legit. We are the only travel agency that kind of success we have, if you visit our website, you will see a lot of testimonials from our clients. We even state it categorically for all our clients, I tell them complicity, that I don’t have the power to give you visa. I don’t sell visa, what I help you do is to ensure that your application is well and properly done. I ensure your documents are in order. I look into your application and ensure everything is in order. I tell you what to include in your application and what not to include. Basically, I assist in ensuring your application is in order. You asked one of the reasons Nigerians face a lot of denials at the embassy? First thing like I said; wrong orientation. Nigerians have this trend of spreading false news, once somebody hears something, they start spreading it around without verifying the authenticity of what they are saying. So when someone has heard that they don’t give somebody that is single visa, everybody just starts spreading the news. You see someone that is single, when they get to the embassy and are asked if he or she is single, they say they are married, and they asked him one or two questions ,and then they has issues. I always tell my clients, always tell the truth, the people at the embassy don’t like lies. Always say the truth and the truth will set you free. That is why a lot of Nigerians get denied at the embassy. It is because of the wrong information, wrong orientation as well as miss information. This is where Zidora Consults comes in. Zidora travel and tours will tell you the whole truth. Some people come to us that they want to apply for a particular country, and l openly tell them, this country will not accept you, your acceptance rate is very very low, I even tell them their chances of getting the visa. If you decide to go ahead, no problem, but I will tell you the truth, that you don’t stand a chance in that particular country.
Where do you aspire to take Zidora Travel and tours to in the next 5 years?
Well, I intend to take Zidora travel and tours as well as Zidora group of companies, like I said excellence is our goal in everything we are doing. We want to be the number player in the market; we want to be a known name for fidelity, delivering on our promise and for excellence. That is what I want and that is what I am working towards.
The travel and tours business is Nigeria is very competitive with a lot of other big players as well. How have you been able to stay on top of the competition?
Zidora travel and tours has managed to carve out a solid niche for itself in the highly competitive industry. First of all, we are the only brand that gives money-back guarantee. I tell my clients your money is safe. Whatever money you pay for whatever services, if you are not satisfied with our service, you get your money back at the end of the day. No other travel company does that. They just do their work and show you what they have done, whether it works for you or not, you don’t get your money back, but at Zidora, we offer you a money-back guarantee. Also, like i said earlier, our success rate is second to none. Visit our website and read the testimonials of clients we have helped. We have helped a lot of families travel abroad to countries like USA, Canada, and Australia and so on. We have helped individuals to travel Europe, Canada, Australia and even the Caribbean. People that never thought they stood a chance of traveling abroad, through our company, we offer them various vacation plans. We have affordable vacation plans to various countries. We also assist them in getting their study and work visas, tourist visas to countries like: USA, Canada, Australia, Europe and the rest.
Do you have other travel and tours affiliates you work with abroad or you do all you processing from Nigeria?
We do our processing from Nigeria. We also partner with travel companies abroad; like I told you we organize holiday tours and excursions. So off course, we have partner institutions abroad in different countries like Australia, UK, USA, and Canada and so on. We are also in partnership with a lot of foreign schools in the Caribbean, UK, USA, Australia and Canada. We have a very strong study abroad department, so we assist students that want to study abroad. What we do is that we recruit students from Nigeria that want to study abroad and place them in reputable institutions abroad.
Let’s digress a little, talk to us about Zidora Aid Foundation.
Zidora Aid Foundation is a non- governmental, not for profit organization. It is an NGO, a charity organization that basically works towards making people feel better by living better. Our goal is to improve the quality of life of Nigerians as much as we can. We touch lives every day, once in a week, usually every Thursday we go out. if you come to the office you see our staff dressed in their Zidora Aid Foundation T-shirt, we go out for charity work. So every week, we have a new programme, a new initiative we work towards. We have a lot of projects we are currently embarking on. We have the project 2020 Educational Projects which is a project design to do our bit in eradicating eradicate illiteracy from children between age 2 to 18yrs by the year 2020; we are working towards that. We are involved in the distribution of relief materials, study material and food items. We also provide medical and legal aid. We also assist people in dire need, regardless of their social-economic status, age, gender, religion and, social orientation. Once you come to us for assistance, we try to assist in whatever way we can. We have staff strength at Zidora Aid Foundation; we also have volunteers. We have medical doctors that we work with that provide medical aid, we have lawyers that we work with that provide legal aid to people that have been wrongly accused and who can’t afford legal representation in the court. We assist them with all that and that is what Zidora Aid Foundation does.
What year was Zidora Aid Foundation incorporated?
Zidora Aid Foundation was officially incorporated last year, although on our own, we have always done charity work. We usually set aside a particular percentage of the profit of Zidora group towards charity work, because I believe that the fastest way to God’s is through charity, by helping someone who cannot help himself. So we have always done charity, but Zidora Aid Foundation was officially incorporated last year.
A lot of people go into the NGO just to make money for personal use. We have heard cases of NGOs getting aids from foreign donors that were not used for charity. If I may ask, how is Zidora Aid Foundation funded?
Well, I can’t speak for others organizations, but I can speak for Zidora Aid Foundation. Our record speaks for itself. No single dime have we ever gotten from any foreign donor, all our charity work is funded strictly from proceeds from Zidora group of companies.
Are there challenges you have faced in the course of running an NGO?
Yes Of course, everything in life, you encounter challenges. Nothing good comes easy. You definitely encounter challenges in running an NGO, not only NGOs, just the same way you encounter challenges in business and your personal life ,finances, there are always challenges. But you work towards overcoming every challenge that is what makes you stronger.
As a person, what is that the thing that gives you fulfillment?
Personally I love putting smiles on the faces of people, whether they are my clients from Zidora group of companies or people I don’t even know via Zidora Aid Foundation. I feel good whenever i touch a life. Whenever I help someone no matter how little, I feel good. Not only financially, you can help someone morally and even in their personal lives. Whenever I help someone and they get a little bit of relief, I feel good. Also, one of the reasons we do charity work at Zidora Aid Foundation and carry our staff along for charity work is that we are working towards making the world a better place. We believe that by helping someone who cannot help himself, someone in need; when you help him and he is back on his feet, he will then go on and help another person in need and thereby creating a ripples effect. I alone can’t change the world, but by helping someone that goes on and help another person, you create a ripple effect and the world basically becomes a better place. That is what we believe and that is what we are working towards at Zidora Aid Foundation.
As a mother and a busy Executive, how balance family and work?
Well, that is a very interesting question. The work-life balance is not an easy life, but with the grace of God we have been made capable to handle whatever comes our way. It is all about delegation, planning your time very well, using your time effectively. Sometimes you put work before family and at other times you put family before work, all we ask God for is the wisdom to know what to put as a priority and at what time.
How do you unwind?
I relax mostly on the weekends, I like taking my kids out a lot. Most time I go with my staff, we go to the beach, we go out to take a drink, eat, just sit down have fun and we are back home.
Walking in to you office, you could feel love and the environment is very friendly, staff doing things like a family? How were you able to build that spirit of togetherness in your organization?
I have always operated my business, not just as a business. I take my staff like my family members. Number one, that is the only way to get the best out of them, because when people work for you, sometimes they don’t take it as their business, they just come to work and sign out at the end of the day and go home. But in order to bring the best out of your staff, you make them part of the business. Over here at Zidora, yes, you have a salary, but aside your monthly salary, I also encourage you with commission. I have a rating system, if you do very well this month your commission will be very much, if you don’t do so well, it is basically a reward system. I have a reward system in place for my staff. I also reward good behaviour. That is one way of encouraging them. I am also interested in human capital development, I don’t just encourage my staff to come to work, I encourage entrepreneurship spirit in them. I encourage my staff to run small businesses on their own. I encourage them to write business proposals, business plan and bring to me. I look at it, the one that is viable, I assist them with finding or show them how they can raise funds. I am interested in my staff not only working for me, but also doing something for themselves at their own spare time.
Are there some other things you would like our readers to know?
Not really, I think I have said it all, but the most important thing I would like the readers to know is that whatever you do in life, make sure excellence is your watchword. Mediocrity will not take you far. Don’t just be averages. Whatever your hands finds to do, ensure you excel and that you be the best. It is not everybody that will be an entrepreneur, a lawyer. If you a singer be the best singer in the world, if you are a dancer, be the best dancer in the world. Whatever you are doing, make sure you excel and be at the top of your game.
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Sahara weekly online is published by First Sahara weekly international. contact [email protected]
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Business
Zacch Adedeji: And The Revenue Keeps Increasing By Rabiu Usman By Rabiu Usman
Published
18 hours agoon
November 15, 2024Zacch Adedeji: And The Revenue Keeps Increasing By Rabiu Usman
By Rabiu Usman
It was President Bola Tinubu that declared that in the first half of this year, the revenue of Nigeria soared to over N9.1 trillion, compared to the first half of 2023.
For instance, N5.2 Trillion accrued into the Federation Account for the period January to June 2023, while a total of N7.3 Trillion accrued into the account for the period July to December, 2023.
However, for June this year, accruals into the Federation Account rose to N2.483 trillion in June 2024. It was N2.324.792 trillion in May, meaning for the two months of May and June this year alone, about N4.8 trillion accrued into the Federation Account while N5.2 trillion accrued into the account for the first six months of last year.
The President attributed the revenue increase to the government’s efforts in blocking leakages, introducing automation, and mobilizing funding creatively, all without placing an additional burden on the people.
A few days after the President spoke glowingly of the considerable increase in the revenue of the country, a process being powered by the Federal Inland Revenue Service (FIRS), under the Chairmanship of Dr Zacch Adedeji, the Nigeria’s Zaccheus the Tax Collector, the World Bank also confirmed the progress being made in the area of revenue generation.
The World Bank projected that following the recent increase in government revenue, Nigeria’s revenue-to-GDP ratio could rise to over 10.5 percent by the end of 2024.
Ndiamé Diop, World Bank country director for Nigeria shared the forecast during an interactive session on ‘Fiscal Reforms for a More Secure Future’ at the 30th Nigerian Economic Summit, held in Abuja last month.
Also, according to data released in September by the National Bureau of Statistics (NBS), Nigeria’s Value Added Tax (VAT) revenue increased by 99.82% year-over-year in the second quarter of 2024.
During this period, total VAT revenue reached N1.56 trillion, a 9.11% increase compared to the previous quarter.
The NBS report highlighted that the revenue growth was driven primarily by local payments, which brought in about $484 million, while foreign payments contributed $242 million. VAT on imports generated $228 million.
However, despite the level of progress already made, the FIRS under Dr Zacch Adedeji is not done yet.
Various innovations are daily being introduced to ensure seamless payment of taxes by Nigerians.
Last week, the Taxpayer Services Department of the FIRS launched the new USSD code *829#, aimed at revolutionizing taxpayer engagement and access to essential tax services.
According to the FIRS, the initiative was aimed at “simplifying tax processes and providing a seamless, efficient service experience.”
With the *829# USSD code, taxpayers can now effortlessly access a range of services, including TIN retrieval, Tax Clearance Certificate (TCC) verification, and general inquiries all from the convenience of their mobile phones and with no need for internet access.
Also, Zacch Adedeji is everywhere, explaining the four tax bills currently before the National Assembly, assuring that it will not reduce the funding or operational efficiency of government agencies.
Last week Wednesday, Adedeji addressed the heads of the National Agency for Science and Engineering Infrastructure (NASENI), the National Information Technology Development Agency (NITDA), and the Tertiary Education Trust Fund (TETFUND) at the Revenue House in Abuja. He allayed concerns surrounding the proposal to rename the FIRS as the Nigeria Revenue Service (NRS), clarifying that the change is intended to streamline and improve agency efficiency.
He said the main goal was to align government revenue practices with current fiscal demands to ensure all agencies are well-funded and effective.
Adedeji further highlighted that the proposed legislation would enable government agencies to concentrate on their core responsibilities without the added task of revenue collection.
“The bills, once enacted, will allow agencies to focus on their primary functions instead of managing tax collection duties,” he explained.
Adedeji, who appears to have taken up the job of an Explainer concerning the new tax bills, further pointed out that the bills were the aftermath of President Tinubu’s administration recognition of the need for a unified tax code to reduce complexity and stimulate economic growth.
Perhaps, by the time this is being read, Dr Zacch Adedeji, will be standing before another audience to explain the ideas behind the new tax bills and their capability to further sore up the revenue base of the country, because for him, the revenue must keep increasing.
Usman, a public affairs commentator lives in Abuja.
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Business
Wema Bank Announces Grand Finale of Hackaholics 5.0: Set to Reward Winners With ₦75 Million Worth of Prizes
Published
24 hours agoon
November 15, 2024*Wema Bank Announces Grand Finale of Hackaholics 5.0: Set to Reward Winners With ₦75 Million Worth of Prizes
Wema Bank, Nigeria’s foremost innovative financial institution and pioneer of Africa’s first fully digital bank, ALAT, has announced the grand finale of the 5th edition of its flagship youth and startup-focused tech competition, Hackaholics.
Launched in 2019, Wema Hackaholics is a groundbreaking initiative designed to harness the creativity and entrepreneurial spirit of Nigeria’s youth, providing them with a platform to turn their tech-driven ideas into reality. The highly anticipated Hackaholics 5.0 grand finale will take place on November 27th, 2024, under the theme, “Meta Idea: Capitalizing Africa’s Growth Through Innovation.” This year’s theme aims to showcase how tech-driven solutions can fuel Africa’s development by tapping into the continent’s growth potential through innovation and digital transformation.
The grand finale will bring together the brightest innovators from universities and tech communities across the country. These innovators will pitch their Digi-Tech solutions designed to solve real-world problems and contribute to Africa’s economic and social progress. The event promises to be the culmination of months of intensive competition, collaboration, and mentorship, providing a platform for youth-led tech ideas to reach new heights.
Announcing the date of the grand finale, Moruf Oseni, MD/CEO of Wema Bank, highlighted the bank’s vision for Hackaholics. “Hackaholics is more than a competition; it is a movement to equip Nigeria’s youth with the skills, networks, and resources needed to drive Africa’s digital transformation. The Meta Idea theme for this year is a call to action for young innovators to think beyond the present and design solutions that will capitalize on Africa’s growth. We are excited to see how our participants envision and build the Africa of tomorrow.”
Speaking on the prizes, the MD/CEO said “At the grand finale, participants will compete for exciting cash prizes, grants, and access to Wema Bank’s extensive network of investors, mentors, and industry experts. The total worth of prizes for this year is ₦75,000,000. The winning team will receive ₦30,000,000, the first runner-up will receive ₦20,000,000 and the second runner-up will receive ₦15,000,000 worth of prizes. Additionally, we will be awarding a special grant of ₦10,000,000 worth of prizes to the female-led team to encourage gender diversity in tech innovation.” He concluded.
Wema Bank’s Hackaholics is a testament to the Bank’s commitment to shaping Africa’s future through innovation and entrepreneurship. Hackaholics 5.0 began with a nationwide call for entries earlier in the year and has engaged over 10,000 aspiring tech innovators and entrepreneurs across Nigeria. With 2,297 applications across 8 physical pitch centers and 1 virtual pitch center, 34 innovators across all locations are set to pitch their ideas at the pre-pitch stage ahead of the grand finale scheduled to hold in Lagos.
Through Hackaholics, Wema Bank has provided a platform for youth to channel their creativity and entrepreneurial spirit into actionable tech solutions that address Africa’s most pressing challenges. Over the years, Hackaholics has grown into one of the largest and most influential tech competitions in Nigeria, impacting thousands of young minds.
The competition not only offers winners cash prizes and grants, but also access to mentorship, industry networks, and resources to help scale their innovations globally. This initiative is a key part of Wema Bank’s broader strategy to harness technology as a driver of socio-economic growth in Africa.
Interested individuals can register to attend the grand finale via https://hackaholics.wemabank.com/grandfinale
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ATMs empty as banks ration withdrawals
The Automated Teller Machines of Deposit Money Banks have consistently remained empty in recent months as banks grapple with a sustained low cash supply.
It was also gathered on Wednesday that some DMBs, particularly in the Federal Capital Territory, have begun another round of cash rationing, restricting maximum over-the-counter withdrawals to a daily limit between N5,000 and N20,000.
While banks struggle to get cash, Point-of-Sales operators have been fulfilling the cash needs of customers.
Speaking at the Facts Behind the Rights Issue Presentation of FBN Holdings at the Nigerian Exchange Limited recently, the Executive Director/Chief Financial Officer of First Bank, Patrick Iyamabo, said that the matter was an industry-wide one and not peculiar to a specific bank.
He said, “It is an industry problem. Most customers after exhausting the options available in other banks, tend to settle at FirstBank to address their cash needs. The challenge differs by location but we know it is a challenge that the regulator is looking into to address. But as we speak of physical cash, we must appreciate that the direction of the industry is to go digital.
“A lot of our customers do most of their transactions digitally, and you heard the GMD speak to this, very often people don’t want to transact in cash. In terms of this new order, your bank, FirstBank is very well positioned so if you look at the statistics and I’m speaking to independent statistics, just pick up your NIBSS report, the bank with the most stable platform meaning availability to always transact digitally is FirstBank. So, all our customers have the benefits of having their cash in First Bank and having access to this cash anytime anywhere and as necessary. It’s a huge advantage.”
Speaking anonymously with The PUNCH, a banker at a tier-1 bank put the blame on the Central Bank of Nigeria.
“It is what CBN has given us that we are using. We are confined within the limits of what is available to us. Also, because we are a big operation, we have to deal with many other businesses.
“Have you also noticed that there is a boom in the PoS business? Those people don’t take their money to the banks. The money comes out of the banks and it stays within their circle. They warehouse their funds, unlike you and I who would withdraw money and spend it which will eventually find itself back into the formal banking system. It is not the same with them. They warehouse their funds and distribute it among themselves.”
According to data from the CBN, currency outside the banks hit N4.02tn in September from N3.86tn in August. This brings it closer to the value of currency in circulation which stood at N4.31tn in September.
Meanwhile, some PoS operators on Lagos Island have increased their charges from N200 for cash of N10,000 to N300.
This was observed at both the CMS bus stop and at Obalende. However, off Lagos Island, the rates had remained at N200 for cash withdrawal of N10,000.
It was further gathered that banks have begun cash rationing, restricting maximum over-the-counter withdrawals to a daily limit between N5,000 and N20,000.
Findings by The PUNCH showed that the development is gradually leading to cash shortage, as many ATMs were non-functional, leaving customers with no choice but to seek alternative means of withdrawing cash.
As a result, many people have turned to Point-of-Sale operators, who have become the primary channel for cash withdrawals, albeit often at higher transaction fees.
Major commercial banks visited by one of our correspondents on Wednesday claimed not to have sufficient cash allocation hence the ration withdrawals to serve more customers.
The banks visited include Guaranty Trust Bank, Zenith Bank along Airport Road, and EcoBank at Jabi in Abuja.
A bank customer at EcoBank, who spoke without mentioning her name, said she was only allowed to withdraw N5,000 from N20,000 previously allowed.
“I was just informed that I can only withdraw N5,000 from my account. Can you imagine? The amount will can’t even take me home.”
Our correspondent received the same answer when he attempted to obtain cash.
At GTBank and Zenith Bank along the airport road, customers were permitted a maximum withdrawal of N20,000 from N100,000 previously disbursed as a daily limit.
A customer, Mr Faith, who visited the bank expressed shock about the new limit. He said the banks didn’t give any cogent reason for reducing the withdrawal limit.
“I just visited these banks, and I was informed that I can only withdraw N20,000 from N100,000, which was the previous limit. They didn’t even give any reason for reducing, now I have to start looking for cash elsewhere. This country is just so annoying,” He vented.
Cash scarcity became a recurring and widespread issue across Nigeria after the Central Bank of Nigeria introduced a controversial policy in January 2023, which significantly reduced the daily and weekly cash withdrawal limits to N100,000 daily, N500,000 weekly for individuals, and N5m for business entities.
This decision, aimed at encouraging a cashless economy, led to long queues at ATMs, increased difficulty in accessing physical cash, and a general disruption of daily financial transactions for millions of Nigerians.
The policy’s impact was felt particularly by those in rural areas and lower-income groups, who rely heavily on cash for their day-to-day needs, exacerbating economic hardships across the country.
Last week, data from the CBN showed that currency in circulation climbed 56.1 per cent year-on-year to reach N4.31tn, up from N2.76tn in September 2023, reflecting an increase of N1.55tn.
This is just as currency outside banks surged by 66.2 per cent in September 2024, reaching N4.02tn compared to N2.42tn in September 2023, a notable rise of N1.60tn in just one year.
This indicates that the volume of currency retained outside the banking sector outpaced the total released for circulation within the past year.
Compared to August 2024, currency in circulation rose by 4.0 per cent month-on-month, adding N166.2bn from the previous figure of N4.14tn.
The CIC is the amount of cash–in the form of paper notes or coins–within a country that is physically used to conduct transactions between consumers and businesses. It represents the money that has been issued by the country’s monetary authority, minus cash that has been removed from the system.
Earlier in September, the CBN announced plans to sanction banks that fail to dispense cash through their automated teller machines, as part of efforts to improve cash availability in circulation.
The CBN also revealed plans to release an additional N1.4tn into circulation over the next three months to ease cash flow within the banking system.
This strategy aims to ensure that ATMs and bank branches have sufficient cash, addressing ongoing challenges faced by customers over cash shortages.
Efforts to get a reaction from the apex bank on the new situation proved abortive as the acting Director, Corporate Communications, Sidi Ali Hakama, did not respond to enquiries sent to her phone number.
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