BAYERO UNIVERSITY KANO

FACULTY OF ENGINEERING

DEPARTMENT OF CIVIL ENGINEERING

SCHOOL OF GENERAL AND ENTERPRENEURSHIP STUDIES

ENTREPRENEURSHIP AND INNOVATION

EEP 3201

LEVEL 300
 GROUP TWO (2)

S/N NAMES REG. NO SIGN

1 FATIMA GARBA ABDULKARIM ENG/18/CIV/00001
2 IMRAN GARBA ABDU ENG/18/CIV/00002
3 JAZULI SALISU ABDULLAHI ENG/18/CIV/00005
4 MUHAMMAD ABBAH ABDULLAHI ENG/18/CIV/00006
5 MUNTHIR ILYASU ABDULLAHI ENG/18/CIV/00007
6 MUSTAQIM ABDULLAHI ENG/18/CIV/00008
7 YUSUF ABDULLAHI ENG/18/CIV/00009
8 MAHMUD ABDURRAHMAN ENG/18/CIV/00010
9 FARUK ABUBAKAR ENG/18/CIV/00011
10 MUSA ABUBAKAR YAKUBU ENG/18/CIV/00012
11 ABRAHAM CHUKWUEBUKA ACHA ENG/18/CIV/00013
12 ROMEO LUBEM ADIGO ENG/18/CIV/00015
13 ABUBAKAR SADIQ AHMAD ENG/18/CIV/00016
14 USMAN AHMAD AHMAD ENG/18/CIV/00017
15 NAFISAT ITOPA AJAKAYE ENG/18/CIV/00018
16 FATAI OLUWASHEUN AJIDE ENG/18/CIV/00019
17 ABDUSSAMAD MUHAMMAD ALIYU ENG/18/CIV/00021
18 UMMUSALMAH MUSA ALIYU ENG/18/CIV/00022
19 MUSTAPHA AMINU ENG/18/CIV/00023
20 HAMISU SULAIMAN AMMAR ENG/18/CIV/00024
 INTRODUCTION

The cashless policy aims to promote the use of electronic payment systems and reduce the
circulation of physical cash in Nigeria. The policy has several benefits, including reducing the
cost of printing physical cash, improving transparency, and reducing the risks associated with
physical cash handling, such as theft and counterfeiting.

However, there have been concerns about the impact of the cashless policy on individuals who
do not have access to electronic payment systems or who prefer to use physical cash. It is
essential that any policy aimed at reducing the use of physical cash takes into consideration the
needs of all individuals and ensures that they are not excluded from the financial system.

The cashless and naira redesign policy in brings about some negative impacts on businesses,
which include:

Increased costs: Businesses incur additional costs when implementing the cashless policy, such
as acquiring and maintaining electronic payment systems, training employees on how to use
them, and paying transaction fees.

Reduced cash flow: Some businesses face reduced cash flow as customers may prefer to pay
electronically, which may take longer to process and settle. This can be particularly challenging
for small businesses that rely on daily cash flow to meet their operational expenses.

Exclusion of some customers: The cashless policy may exclude customers who do not have
access to electronic payment systems or who prefer to use physical cash.

Disruption during implementation: The implementation of the naira redesign policy cause
temporary disruption in the circulation of currency, which affect businesses that rely on cash
transactions. This can lead to delays in payments and disruptions in supply chains.

Resistance to change: Some customers may be hesitant to adopt electronic payment systems,
which can be a challenge for businesses that want to implement the cashless policy. Additionally,
some businesses may resist the naira redesign policy because of the costs and disruption it may
cause.

In conclusion, the policies have some negative impacts on businesses in Nigeria. It is important
for the government to minimize these impacts and ensure a smooth transition to these policies.
 TAKING M.N. ATAJ CONSTRUCTION LIMITED AS A CASE STUDY

DESCRIPTION OF BUSINESS

M.N. Ataj construction limited is a property developer located at No 575, Gadon Kaya Road,
Kano. It is a medium scale construction that specializes in providing construction services for
small- to medium-sized building projects. These companies typically have a smaller team of
employees and a more limited scope of work compared to larger construction firms.

SMEs are enterprises with maximum assets of 500 million naira excluding land and capital, and
with a staff strength of not less than ten (10) and not more than 300 workers (Adelowo et al.,
2012). Based on this definition, the company falls within the criteria of an SME.

The company specializes in a variety of construction works, such as residential and commercial
projects. They also focus on specific areas of expertise, such as remodeling, renovation, or new
construction. The company has a team of professionals, including architects, engineers, project
managers, and sales and marketing personnel. They also work with external partners, such as
contractors, real estate agents, and financial institutions, to help finance and execute their
projects to the highest standards of quality and safety.

PRODUCTS AND SERVICES OF THE BUSINESS

M.N. Ataj construction limited provides a range of services related to the construction of
buildings, structures, and other facilities. They provide pre-construction services, including site
analysis, building designs and review, cost estimating, and scheduling.

However, the main services provided by the company is construction management. They oversee
the construction process, including scheduling, budgeting, and quality control. They act as the
general contractor for the project, overseeing all aspects of construction and coordinating with
subcontractors.
Also, the company provide renovation and remodeling services for existing buildings, including
structural alterations, interior design, and upgrades to building systems. After construction is
complete, the company may provide post-construction services, including commissioning,
training, and warranty services.

The company is currently constructing a one-storey shopping mall. The site is located directly
opposite BUK old site gate along Gwarzo Road. It is of 200 by 100ft size, 3 staircases, a store,
an escalator and 300 columns. It is a medium sized building that will house a new branch of the
famous Sufi Mart.
 Group members during site visit

OUTLETS OF THE BUSINESS

M.N. Ataj construction limited also has a branch in Abuja located at No 58 Anthony Enahoro
Street Utako, Abuja, Abuja, Nigeria. It is also overseeing the on-going construction of Dalar
Gyada Market at Filin Polo Katsina Road near Hajj camp here in Kano. Utako ultra-modern
market in Abuja. It also has several completed projects.
 CHALLENGES FACING BUSINESS DURING PERIOD OF CASHLESS POLICY

The challenges faced by M.N. Ataj construction limited during period of cashless policy are
several, including:

1. Hinderance in construction materials supply.

Most of the supply chain of the company depends on daily cash transactions. The
unavailability of cash makes it impossible to obtain cement, reinforcement ( steel rods),
gravels, aggregates and other important construction supplies. Absence of these supplies
means work cannot continue.
2. Impact on workers.
Most of the people that work in the site are unbanked, i.e. their daily wages need to be
paid in cash. The policy makes it impossible for the company to obtain cash to pay the
workers. Therefore, work cannot take place, and the activities of the company are
disrupted. Also, the only source of income these low earning laborers depend on is no
longer available.
3. Increased cost.
The transition to electronic payments increased the cost of the construction company,
especially being a small and medium-sized enterprise (SMEs) as they don’t have the
resources to invest in technology and train their staff. In addition, the high charges and
fees on some of the electronic channels like the re-introduction of charges for ATM
withdrawals didn’t go down well with the users.

4. Delay in project completion

The transition to electronic payments and the Naira redesign disrupt the operations of the
company. The company had to halt operation for a whole month as it was impossible to
continue operation. This means increases in the time of completion of the project, which
cost the company both money and resources.
 The transition requires changes to accounting systems, invoicing procedures, and
payment processes, which take time and resources to implement. The company had to
seek new ways of generating cash to continue construction.

5. Loss of job/Reduction of workers.

As the company didn’t have enough manpower to fend for the workers like before, they
have to device a means that would not hault the ongoing project,which is to reduce the
quantity of personnels (laborers and bricklayers) that work per day.
The company also invent a shift working strategy which helps reduce the amount of
workers cut off.

To be concise, the company experience adverse challenges as a result of the naira redesign and
cashless policy. This include impact on workers, increase in cost of operations, disruption of
company operations for a whole month which result in delay in project completion.

MEASURES USED IN MITIGATING THE CHALLENGES

To mitigate the negative challenges of the Naira redesign and cashless policy, M.N. Ataj
construction limited employ several measures, including:

1. Diversifying payment methods

The company diversifying their payment methods by accepting payments via mobile
money or other electronic channels. They also offer incentives to workers that accept
their wages through bank by increasing their wages. They also pay extra to obtain
materials from suppliers. By doing so, they reduced their reliance on cash transactions
and minimized disruptions to their operations.
 2. Educating workers and clients
The company can educate their workers and subcontractors on the new Naira design and
the cashless policy to ensure a smooth transition. They educated the workers on the
viability of the banking system and debunk all the rumors and fallacies surrounding the
new policy. By providing training and guidance, they minimized confusion and delays in
the payment process, thereby avoiding disruption of operation.
3. Building strong relationships with financial institutions
The company build strong relationships with financial institutions to facilitate access to
credit and ensure smooth transactions. By establishing relationships with banks and other
financial institutions, the company obtain VIP treatments, which helps cushion the effects
of the cashless policy.
4. Alternate means of obtaining cash
The company through its vast business network was able to obtain alternate means of
finding cash to pay their laborers.

BUSINESS OPPORTUNITY AS A RESULT OF CASHLESS POLICY

M.N. Ataj construction limited decided to expand their portfolio, by venturing into construction
materials supply. The obtain license to supply cement, rod and other construction materials to sell
to other consumers and for their own projects. This decision makes the company immune to any
foreseeable change in policy that may arise.

Contact information

Engr. Auwal

Site Engineer

07082803911
Reference

Engr. Auwal (site Engineer)

Ufua, D.E., Olujobi, O.J, Ogbari, M.E. et al.

Operations of small and medium enterprises and legal system in Nigeria. Humanit Soc Sci
Commun 7,94 (2020)