Confirming this to LEADERSHIP, National president, Association of small business owners of Nigeria Dr. Femi Egbesola advised that, adequate measures was needed to tackle the cash crunch disruptive economy, noting that, the effect of the cash swap policy is largely unprecedented, far reaching and was a two fold exercise to erode the working capital of the nano and micro sector operators in the country.
“The resultant effect of this is that many of these perishable goods are sold at give away prices. This indeed is a big loss for businesses in such sectors,” he stressed. “On the other hand, the cash crunch has hitherto brought to fore the awareness and need for the nano, micro and small businesses who are yet unbanked to now see reason to open bank accounts, embrace online and digital banking and be able to send and receive online cash transfers.
He averred that regulatory pressures, harsh operating environment, inclemency, and foreign exchange volatility forced over 1.9 million micro, small and medium enterprises to exit the Nigerian business landscape between 2018 and 2020, while borrowing statistics from the National Bureau of Statistics and the Small and Medium Enterprises Development Agency of Nigeria.