THE IMPLICATIONS OF SCARCITY OR HODLING OF CASH BY THE NIGERIAN ELITES
To be honest I am really surprise with what is going on in nigeria right now, presently I am not in Nigeria but the informations and complains I have been getting from people staying in Nigeria is not something pleasant to the ear,for the past three weeks the citizens of Nigeria has been complaing on how the government of the country has decided to withdrew cash from the economy. There is no means for the people to get money to go about their daily activities. The only set of people that has access to cash are the elite because of their connections with the bank managers.
This so called elites sit in their various comfort zones and call the bank managers to bring money to them in their various homes. The only means left for the masses is the P. O.S.Obviously the masses are not finding it easy because the P.O.S operators has also increase the charges in withdrawing for their customers,this is actually draining g the masses financially as it means that more money is leaving their account without any means of replacing it. To be candid this is not a good development because of the implications that comes with it.
IMPLICATIONS
One thing I am so certain about is that this very act of withdrawing money from the economy by the elites will result in some disastrous consequences. If the masses are not happy they will be left without choice than to look for means for survival. One major implication is that it could lead economic unrest, in the sense that the citizens may decide to take laws into their hand, which may lead to the destruction of some financial institutions. It could also lead to political unrest because this may degenerate to a level of uncontrollable violence.
Another implication is that there will be increase in the level of poverty in the country, a country where it's citizens can not access money to meet up with the basic need of life will find living very difficult, money is a necessity when it can't be accessed it create mass poverty in the economy. Now let take the issue of the of the P.O.S operators inflating their charges, this means that you have to pay much higher than the usual amount before you can be giving a particular amount, in this way it is slowing puting the people into poverty because of the fact that they are spending more to get little.
Well I just hope the elites get their senses back on time before it is too late.