Nigerians recently received news of how animals (one snake and one monkey) swallowed and stole a total of N106 million (about $294,400).
First, a Jamb official, Celestine, claimed N36m kept in her care in a vault at the JAMB office was swallowed by a mysterious snake.
The second story is even more ridiculous. A senator, Senator Adamu was accused of mismanaging N70 million belonging to the Northern Senators. According to another Senator, Shehu Sani, this money was sarcastically alleged to have been stolen by monkeys residing at Senator Adamu’s farm.These animals must be taking advantage of the cash-full state of the country.
In 2012, Nigeria’ Central Bank introduced the cashless policy. One of the many reasons for this policy is to curb inefficiency and corruption. The policy is said to have been fully implemented since 2014.
The CBN recognised that high cash usage enables corruption, leakages and money laundering, amongst other cash-related fraudulent activities.
Unfortunately, the policy do not apply to government agencies and parastatals, thereby encouraging incompetence.
The CBN’s article on ‘Çashless Nigeria’ explains that the cash-policy applies to all accounts with exception to Government revenue generation account, Primary Mortgage Institutions, Microfinance Banks and Embassies.
Since the policy do not apply to a revenue generating account such as JAMB’s or Political parties. It is unfortunate that huge sums of money can be lost via such avenue. The Jamb official Celestine and Senator Adamu are being blamed and stripped of their dignity but are they the only culprits?
Are banking institutions so scarce and insecure that huge amount of cash are better kept in offices and on farms?
Maybe Celestine and Senator Adamu are suffering punishment and ridicule from people that made it possible for the mess to occur.
Whether the tales of money swallowing animals are true or not, the fiscal and monetary authorities need to take another look at the cashless policy.
The CBN has maintained that cash usage limits the effectiveness of monetary policy in managing inflation and encouraging economic growth.
Applying the policy to all forms of government account will no doubt reduce the risk of cash-related crimes, and fast track a much desired level of economic development.
The Financial Literate 