Currency
Naira: Railway managers reject electronic payments, insist on cash
Because there is a shortage of Naira, the management of the Nigerian Railway Corporation (NRC) has indicated that its operating policy is against digital transactions.
According to information obtained, the railway corporation refuses to sell tickets to customers who want to use electronic payment methods at ticket counters.
Among the stations that prefer cash payments over digital transactions were Mobolaji Johnson Station and Babatunde Fashola Station.
Unnamed official claims that because the electronic transfer is against NRC policy, management didn’t sanction it as a payment option.
The railway stations are also demanding new notes, which have been scarce, as the Central Bank of Nigeria (CBN) printed insufficient notes.
Nigerians have been battling with the cash scarcity caused by the Naira redesign policy announced by the central bank in October 2022 but was implemented in December with the release of the redesigned notes.
Cash scarcity has triggered chaos and attacks on Nigerian banks because Nigerians are unable to withdraw their money deposited in accounts.
Nigerians have been unable to make cash payments for various sanctions and this has grounded businesses across states.
It has also led to a court face-off between the Federal Government and over 10 states that are complaining the phasing out of the old Naira notes is causing cash scarcity and unrest in the country.
Both the Federal Government and the states are in the Supreme Court over the 10 February 2023 deadline which the CBN fixed for the old N200, N500, and N1,000 notes to cease being legal. The States prayed that the court set aside the deadline.
Although the Supreme Court has ruled that the old Naira notes remain legal, President Muhammadu Buhari said the central bank should only release the old N200 banknotes, while the CBN said the old N500 and N1,000 currencies are no longer legal.
The Supreme Court has adjourned the case between the Federal Government and the States to 25 February 2023 for final judgment before the presidential election.
