s the Central Bank of Nigeria’s Naira redesign policy bites harder, the scarcity of new notes continues to disrupt business activities in markets, restaurants, banks, and major sales outlets across Nigeria.
In the midst of the operational challenges being faced by small businesses especially in rural areas, a PREMIUM TIMES’ survey showed that Point of Sale (PoS) transaction charges jumped 400 per cent in most cities across the country last week.
The impact of the CBN policy and its attendant chaos have frustrated efforts by many Nigerians operating in the nation’s cash-dependent informal economy to do business, make payments, and enjoy certain services.
Findings showed that while the poor circulation of the new notes stifle economic activities, PoS operators have also had a hard time getting both the old and new notes from the banks in recent weeks. Some PoS agents who spoke with PREMIUM TIMES within the week said that their inability to access cash has stalled their operations, while operators who struggled to get cash blamed the hurdles they encountered at the banks for the increase in transaction charges.
Across some of the mobile money cash points visited in Lagos, Abuja, and other major cities, our reporters observed that charges on transactions have skyrocketed by over 400 per cent.
In other places, PoS outlets were shut as operators complained of scarcity of both the old and new notes.
Scarcity
The CBN on 26 October, 2022, announced the introduction of redesigned 200, 500 and 1,000 naira notes into the financial system. But since the notes were unveiled, Nigerians across different parts of the country have had a hard time accessing it from banks and ATM points.
Last week, amid the chaos caused by the scarcity of the new notes, the CBN extended the deadline for the phasing out of the old notes from 31 January deadline to 10 February. Despite the extension, many Nigerians working in the informal sector of the economy have had to scramble for the new notes while others lamented their inability to withdraw their hard earned money from their bank accounts.
There have equally been allegations of hoarding on the part of the Deposit Money Banks, while some mobile cash point vendors are said to be exploiting the situation by dispensing the new notes to customers at skyrocketed prices.
On Friday, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, asked Nigerians to be “patient and join the bank queues” to access their money.
Meanwhile, President Muhammadu Buhari during a meeting with the Progressive Governors’ Forum also urged citizens to give him seven days to resolve the cash crunch that has stifled productive engagements across the country.
As Nigerians besieged commercial banks nationwide to access cash, several videos have surfaced online showing frustrated customers vandalising bank properties due to their inability to get cash from the banks’ ATMs.
