Markets, restaurants, banks, and other key businesses across Nigeria are struggling as a result of a lack of fresh notes due to the Central Bank of Nigeria’s Naira redesign programme.
news correspondent poll found that last week, Point of Sale (PoS) transaction fees increased by as much as 400% in major cities throughout the nation, adding to the operational issues already experienced by small enterprises, especially those located in rural regions.
Many people in Nigeria who work in the cash-based informal sector have found it difficult to conduct business, make payments, or access specific services due to the CBN policy and the ensuing instability.
According to research conducted by Obaland newsmen, not only has the limited availability of the new notes stifled economic activity, but PoS operators have also had trouble obtaining both the old and new notes from the banks in recent weeks. A handful of point-of-sale (PoS) agents who talked with PREMIUM TIMES this week lamented that their inability to withdraw cash had halted operations, while cash-strapped businesses attributed the rise in transaction fees to the difficulties they had accessing funds from banks.
Our correspondents in Lagos, Abuja, and other major cities found that transaction fees at certain mobile money payment stations had increased by more than 400%.
In some areas, point-of-sale locations were forced to close because of a lack of either old or new currency.
Scarcity
On October 26, 2022, the Central Bank of Nigeria (CBN) announced that new versions of the 200, 500, and 1,000 naira notes will be entering circulation. However, since the notes were introduced, it has been difficult for Nigerians in various regions to withdraw their currency from banks and ATMs.
The CBN delayed the date for the phasing out of the old notes from January 31 to February 10 last week in light of the confusion generated by the shortage of new notes. Despite the reprieve, many Nigerians in the informal economy have had to hurry to get their hands on fresh notes, while others have complained about being unable to access their bank accounts.
Some mobile cash point merchants, it is reported, are taking advantage of the situation by distributing the new notes to consumers at exorbitant costs. At the same time, the Deposit Money Banks have also been accused of hoarding.
On Friday, Godwin Emefiele, governor of Nigeria’s Central Bank (CBN), urged citizens to “be patient and join the bank queues” in order to withdraw cash.
At the same time, at a meeting with the Progressive Governors Forum, President Muhammadu Buhari asked the people to allow him seven days to fix the cash shortage that has prevented constructive activities across the country.
Multiple videos have appeared online of angry customers vandalising bank property after being turned away from commercial banks across Nigeria in search of cash.
