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Nigerians groan under the scarcity of lower denominations which is affecting business transactions as the Central Bank of Nigeria takes measures to solve the persistent problem
By Anayo Ezugwu
THE Central Bank of Nigeria, CBN, is addressing the problem of scarcity of lower denominations of Naira which has persisted in the country over the years, causing untold inconvenience to Nigerians, especially the masses. The bank on Monday, August 6, started a process that would make the lower currency denominations available to Nigerians by direct disbursement through commercial banks.
Benedict Maduagwu, assistant director, Currency Operations Department, CBN, has advised marketers to open a corporate account with commercial banks through which they should request for lower denominations of Naira directly from them.
At the CBN’s Fair programme entitled: ‘Promoting Financial Stability and Economic Development’, Maduagwu said the bank has commenced the direct disbursement of N200, N100, N50, N20, N10 and N5 denominations in exchange for the higher denominations to traders, merchants, shopping malls, stores, supermarkets, market men, and women.
Despite CBN’s advise, scarcity of lower denomination of Naira remains, with many Nigerians forfeiting their hard-earned money after buying goods because the sellers do not have sucfficient cash to dispense change after purchasing goods at shopping malls or in the market or after boading a bus. Consequently, it has become a daily occurrence to see bus conductors and passengers fighting in Lagos, over the inability of the former to remit the balance.of payment the later made.
The story is the same in the markets, shopping malls and among road side hawkers. Many Nigerians have fought shop attendants over the same issue, while others were made to forfeit theirs. Realnews investigation has revealed a general scarcity of N5, N10, N20, N50 and N100 in circulation. This general scarcity is threatening the informal sector of the Nigerian economy.
The worst affected by the scarcity are hawkers, petty traders, commercial motor drivers and other informal business owners. Most bus drivers, in their bid to save time and avoid arguments with commuters now demand and collect complete fare for the routes they ply before allowing people to board their vehicles. Failure to produce the actually fare in lower denominations may result in delay in boarding a bus, thereby making some people to arrive later in the office or their destination.
John Chuku, a commercial bus driver, said he had refused to carry many passengers because they had higher denominations of the Naira to pay their bus fares. Chuku, who declined to disclose the losses he incurred so far, said the shortage of the lower denominations of the Naira had made the transportation business cumbersome.
Hafeez Ibrahim, a bus conductor, said the scarcity of lower denominations of the currency in circulation has been a major cause of frictions between bus conductors and commuters. “We have to contend with abuse and curses from passengers who are not able to get their change after payment. In most cases, we have to forgo our own fare for peace to reign and often we do advise passengers to board with their ‘change’ to avoid any quarrel. Often times we join passengers and give them a high denomination equalling their total change and let them sort themselves out,” he said.
The inconvenience this joint venture causes has compelled some people like Okafor Dike, a commuter, to warehouse lower currency denominations before boarding commercial vehicles. According to him, warehousing of lower currency denominations saves him daily from commercial drivers’ embarrassment.
Victor Enyinnanya, a commuter, said the situation is applicable everywhere even in major shops and eateries in the state. “Retrieving your change after transaction is not easy nowadays. Even at the banks, it is becoming a major crisis point and I have witnessed a major fracas break out because of as little as N10. It is a big problem and I think government should do something about it before it becomes an economic challenge,” he said.
Some residents have attributed the shortage to the inability of banks to upload lower currency denominations in the automated teller machines. They argued that the ATM dispensed only higher currency denominations. Still, others said the development was as a result of the CBN’s cashless policy.
The CBN had on July 10, approved the disbursement of lower currencies to market associations, merchants, shopping malls among other business outlets. This move was to address the inadequate circulation of lower naira denominations and the difficulties encountered by economic agents.
Priscilla E. Eleje, acting director, currency operations department, CBN, during a public sensitisation and enlightenment campaign in Kano, said CBN had noted the inadequate circulation of the lower denomination in the country and the difficulties it poses to business transactions, hence the direct disbursement of lower denominations to users.
She said the disbursement would be made to the beneficiaries through the commercial banks identified by the market associations, adding that the accounts must be funded before any withdrawal could be made. According to her, the banknotes will be delivered to the association at no extra cost.
Eleje blamed the scarcity of lower naira denominations on hoarding and sales by unscrupulous people. She said the apex bank has mapped out strategies to address the menace while expressing disgust at the activities of middle men who hoard, sell and buy such currencies at the detriment of the public.
– Aug. 10, 2018 @ 17:09 GMT |
Tags: How Nigerians suffer because of Scarcity of Lower Denominations of Naira
