Babatunji Wusu –
Prior to the Central Bank of Nigeria’s (CBN) earlier announced deadline for using the previous N200, N500, and N1000 banknotes, shortages of Naira have been reported in at least two states, namely Kano and Borno.
Remember that the CBN had earlier declared that, in accordance with the Supreme Court’s ruling, the old Naira notes will continue to be legal tender until December 31, 2023.
The N200, N500, and N1,000 notes will be redesigned, according to former CBN governor Godwin Emefiele, who also urged people to deposit their existing notes before January 31, 2023, as they will no longer be acknowledged as legal cash. A development that caused immense suffering for Nigerians nationwide, escalating protests and bank attacks in numerous cities throughout the nation.
But the business groups in Kano and Borno states have voiced fears about the Naira scarcity resuming a few weeks ahead of the CBN deadline.
However, a CBN representative who allegedly discussed the matter with Daily Trust said that there was no intention to “phase out the old notes.”
The media outlet additionally cited Abdullahi Usman, a Point of Sales (PoS) operator in Kano, who stated that banks only permitted daily withdrawals of N40,000 to N50,000 for individuals and N150,000 to N200,000 for corporate firms.
He claims that the markets, where cash transactions are typically conducted, are the source of his cash supply.
“Most banks only let us to have N40,000 to N50,000 daily, thus as a PoS operator, I can’t provide more than N20,000 to individuals. Only corporate account owners are eligible to receive N150,000 to N200,000, I discovered. The majority of PoS centers currently have less cash than they did a few weeks ago, if you walk about the town, he stated.
He claimed that many people had deposited their money in banks in anticipation of the CBN’s December deadline in order to avoid getting stuck after December 31.
Banks typically don’t have enough cash on hand to give consumers, but another PoS operator, Bello Shehu, said he had since switched to getting cash from gas stations.
“I get my money from gas stations because the money we get from the banks these days isn’t enough to meet the needs of our customers,” he stated.
It was observed that most bank ATMs were not dispensing cash, even though there were no lengthy lines. Muhammad Gambo, a shopkeeper in Hotoro, Nassarawa Local Government Area, Kano, stated that he hasn’t been able to get cash out of ATMs lately. In a same vein, a government employee from Kano State revealed that he was only able to withdraw half of his October salary from PoS after being denied access to six ATMs.
Residents of Borno Are Being Hard Hit by Naira Scarcity
The story went on to say that Maiduguri, Borno State, is already feeling the full force of the resurrected Naira shortage.
Because most transactions can only be completed with limited cash, residents, traders, and banks are all impacted.
Journalists who purportedly conducted surveys in the capital city’s banks, PoS locations, and markets noted that a lack of cash had pushed many people to conduct their business online. It was reported that while constraints were in place for clients who had access to cash, the majority of the ATMs and PoS visited did not have cash.
Because there were not enough naira notes, a staff member at one of Maiduguri’s first-generation banks claimed that his institution had put a N20,000 restriction on customer withdrawals. He claimed that occasionally the CBN would not send money to his bank for two weeks.
In addition, he claimed to have noticed that patrons were no longer making deposits at the bank.
You will surprisingly give cash to consumers on a daily basis, but there will be no cash deposit. We have discovered that several agents embezzle money from local vendors and gas stations,” he remarked.
Yapa Moses, a PoS operator, told a journalist during an interview that he now had to book money from nearby dealers and give them a tiny amount. You can visit five ATM locations without getting cash, thus we no longer rely on banks to receive cash.
Inusa Salihu, a client, claimed he tried to withdraw cash from eight PoS locations along the Maiduguri by-pass but was unable.
“He already set a limit of N5,000, so I had to drive to Baga Market and beg the PoS operator to give me N10,000,” he stated.
Experiences With The Resurfaced Naira Scarcity Are Shared By BDCs
A popular Sheraton Road, Wuse Zone 4 Abuja, Bala Gidado Bureau de Change (BDC) operator shared his experience with journalists, stating that the naira scarcity has returned for a few days.
“Banks have begun removing cash, which may be related to the December deadline for the old notes to expire.
Today, I went to the bank to get cash, but I wasn’t able to receive what I wanted. We don’t know why naira is so hard to get by right now, he told Daily Trust.
Ibrahim Hayatu, a different BDC operator, said that although the Naira shortage started last week, it worsened this week.
“There is a problem with the naira scarcity that began last week and that we are unable to see, even when we visit the bank. I had to ask my coworkers today before I received N500,000,” he remarked.
