The day-one of the gradual relaxation of the lockdown in Lagos, Abuja and Ogun State showed poor level of compliance with the guidelines reeled out by the Federal Government and the various state administrations as residents trooped out with little or no regard to social distance, compulsory use of facemasks and other safety protocols.
At Oyingbo Market in Lagos Mainland LGA, our correspondent ran into an intimidating crowd of buyers and sellers many of whom wore no facemasks and seemed to care less about the social distancing protocol
The three states had been on lockdown since March 30 as part of government measures to curtail the spread of coronavirus in the country.
The commercial banks had difficult times managing surging crowd of customers who thronged their branches for different transactions.
In almost all branches of the different commercial banks visited, disgruntled customers were seen in queues with civil security personnel and police operatives attached to the banks battling to control the crowd.
Some of the anxious customers, BusinessDay discovered, arrived their banks as early as 7:30 even when the subsisting guidelines in Lagos allow banks to open their offices to the public from 9am.
It was noticed that the social distancing protocol was not observed in most of the bank branches monitored, as the customers glued in the queues, just as many were without facemasks.
Also, some of the yellow commercial buses did not comply with the directive to limit their capacity to 60 percent. A number of them sighted on Funsho Williams Avenue (formerly Western Avenue) in Surulere and elsewhere in the state metropolis carried more than eight passengers.
At Oyingbo Market in Lagos Mainland LGA, our correspondent ran into an intimidating crowd of buyers and sellers many of whom wore no facemasks and seemed to care less about the social distancing protocol.
In Abuja, the poor compliance to the guidelines issued by both the Federal Government and the Federal Capital Territory Administration (FCTA) was visible, sending signals that there could be a surge in the number of cases of the killer virus in the nation’s capital.
Some of the guidelines released by the FCTA at the weekend ahead of the ease of the lockdown said “use of facemasks by residents in all public places is mandatory and prohibition of commercial motorcycles within the FCT remains in force including Kubwa and Dutse Alhaji”.
The guidelines asked tricycles to limit their activities to areas already designated with a maximum of three persons (driver and two passengers); taxis are mandated to carry a maximum of four persons at a time (driver and three persons), among others.
However, BusinessDay observed that in many parts of the FCT, particularly in adjoining towns to the City Centre, these guidelines were flouted as most transporters, for instance, were still conveying more than the approved number of passengers while long queues were seen at banks without observing the safe distancing protocols of at least 2 metres and wearing facemasks.
In the Kuje Area Council, people trooped out, especially owners of small scale businesses and daily-paid workers, without observing social distance and other protocols.
At Nyanya, a suburb of the FCT, parks and market places were seen crowded with people including commuters scrambling to go to work crammed in vehicles, while the multitude that trooped out in the area did not wear masks.
The residents of Zuba apparently resumed their commercial activities fully as the fruit market as the place was crowded with buyers, sellers and suppliers without observing social distance, just as it was seen at the Utako market.
The same was observed in Bwari Area Council, as well as Lokogoma/Lugbe axis.
Yomi Farounbi, a former chairman of Ikeja branch of the Nigerian Bar Association (NBA), described the decision to ease the lockdown as ill-advised.
Farounbi told BusinessDay that the government failed the people by allowing itself to be stampeded into relaxing the lockdown when the coronavirus cases are on the rise.
Noting that application of force in a democracy may not be ideal, the legal practitioner advised the government to re-lock the country until the pandemic curve is seen flattening.
Gbenga Omotosho, Lagos State commissioner for information and strategy, said the government would not be applying force to get the citizens to comply with the compulsory wearing of facemasks and other directives, including the social distancing protocol and 60 percent maximum loading of commercial buses.
“We’re not applying force because we’re in a democracy. We don’t even have the capacity for that. We’ve been reaching out to our traditional and religious leaders to help us talk to their subjects,” Omotosho said.
“We’ve also met with the leadership of transportation unions and they have agreed to cooperate with the government. We would continue to use persuasion,” he said during a live interview on ‘Morning Crossfire’ monitored on Nigeria Info (99.3) radio station on Monday.
Analysts say the large crowds seen around bank branches across Lagos, Abuja and Ogun Monday is a pointer to the weak adoption of cashless policy among customers. They, however, add that the banks are not to blame.
The banks have put facilities in place for people to use the ATM, PoS, internet banking, mobile banking and other digital channels, said Uche Olowu, outgoing president and chairman of council, Chartered Institute of Bankers of Nigeria (CIBN). He said all the electronic platforms to enable cashless transactions are working and that the banks are not to blame for the large crowd at the branches.
Jude Monye, executive director, Heritage Bank, said the Central Bank of Nigeria (CBN) has done a lot in strengthening the cashless policy and setting the platform for the banks. He said the banks on their own have invested in infrastructure and that the cashless policy is working, but there is still need for more education of the customers.
Uju Ogubunka, president, Banks Customers Association of Nigeria (BCAN), blamed the development on the economy, saying the government through the CBN, the Nigeria Deposit Insurance Corporation (NDIC) and other agencies has the responsibility to the customers on the adoption of alternative banking channels.
But Uche Uwaleke, professor of Finance and Capital Market, Nasarawa State University, Kefi, said the run on banks should not come as a surprise to anyone after customers have been locked down for over a month due to COVID-19.
“I expect any proactive bank to make adequate preparations for the upsurge,” said Uwaleke, former chairman, CIBN, Abuja branch. “Even though online banking has been up and running, the transactions demand for cash is on the increase as a lot of people need cash to survive the pandemic.”
He noted that most neighbourhood shops that sell food and other essentials do not have PoS machines and to make matters worse, access to the nearest ATM point is made difficult by the restrictions on movement. So the relaxation of the lockdown in Lagos and Abuja, with a significant proportion of banking transactions, offers bank customers an opportunity to withdraw cash in the face of uncertainty.
“This development will challenge bank’s liquidity and reduce their ability to grant loans. It is for this reason one expects the MPC to lower the Cash Reserve Ratio when the members meet later this month in order to allow banks more liquidity room,” Uwaleke said.
“In view of the fact that the long queues are more from customers withdrawing cash due to reasons mentioned earlier, the cashless policy of the CBN is threatened as COVID-19 seems to have enthroned cash above all payment channels. Because banks will come under pressure, their operational costs will likely rise from cost of ensuring there is no breakdown in IT systems to providing incentives for extra labour or time required to meet customers’ needs for cash.
“Banks will also be expected to provide adequate protection for staff in the frontline of duty, especially bank tellers likely to be overwhelmed by the rush. Ultimately, these unprecedented costs will be transferred to borrowers by way of higher interest charges with negative impact on the economy, making difficult COVID-19 economic recovery efforts of the government,” he said.
