It will help curb inflation by reducing the amount of cash in circulation and cash chasing fewer goods. It may also be a bit more difficult for sellers to simply jerk up prices on buyers the way they presently do. There are psychologies in the market that we have not properly analysed and which have gotten us to this sorry point as a people. For instance, if fuel prices go up 20%, bus drivers increase fares by 50%! Why? Partly because commuters have no choice.
People in progressive nations have realised that as far as prosperity goes, the more, the merrier. Whereas those who have will likely continue to have, progress is when everyone is able to attain some above average standard of living. Nigeria has so much to do in this regard, as too many of our people still exist in unacceptable, sub-human conditions, which brings shame and opprobrium to all of us.
In the end, the cashless policy will have the effect of an elite consensus. Nigerians who believe that they are poor should support it but they are being confused by those who want a continuation of the status quo. President Buhari is on his way out and will support the policy to the end though. It will be a major blow against high corruption, because it will just be impossible to deliver tens of millions or billions to anyone as bribes. And getting dollars will be as difficult, since you need naira for that purpose. If the Bureaux De Change sector is well-reformed, it will be a slam dunk on corruption and a major win for Buhari.
It will help curb inflation by reducing the amount of cash in circulation and cash chasing fewer goods. It may also be a bit more difficult for sellers to simply jerk up prices on buyers the way they presently do. There are psychologies in the market that we have not properly analysed and which have gotten us to this sorry point as a people. For instance, if fuel prices go up 20%, bus drivers increase fares by 50%! Why? Partly because commuters have no choice.