Nigeria: Naira, fuel scarcity puts economy on hold

By Uche Nonso

The last few days have been a marathon for the people of the Federal Republic of Nigeria. Fuel and naira scarcity has left millions to wonder around filling stations, banks, ATMs, and POS points to buy fuel or get new naira currency.

If Nigerians have been used to fuel scarcity, certainly the scarcity of naira notes has left the country in pandemonium. Since the country’s central bank, the Central Bank of Nigeria, CBN, changed the previous naira bank notes, there has been constant unavailability of new legal tender.

The CBN argued that banks have not reached out to collect the new notes. The Central bank had even imposed N1 million per day penalty https://thenationonlineng.net/cbn-to-fine-banks-n1m-per-day-for-not-picking-new-naira-notes/ on banks that fail to pick up the new notes.

“When we discovered that they refused to collect the new naira notes, we put sanctions on the bank with a fine of N1 million per box per day depending on the number of days.” a CBN statement read.

But the worst days were still ahead. The deadline for the usage of old bank notes was on January 31, 2023, yet Nigerians are not a possession of the new notes.

Since old notes were deposited in banks as specified by the central bank, liquid money became as scarce as a dog’s tears!

Going cashless was the only solution, but banks had a significant issue: poor networks. Those who queued to buy food and other stuff ended up going home empty-handed because of poor networks. I came to the Central District Shoprite in Abuja, to buy dinner for the family, as you can see ( showing an empty purse) I am going back home without food because their machines keep rejecting the cards I give them,” a disgruntled client told this reporter.

Another client who came to buy from Shoprite was seen begging for cash from others after all his ATM cards were rejected due to poor network.

The situation is not different at the filling stations where several cars have been pumped but they are not able to pay due to poor networks.

In Jabi, one of the most popular areas in Abuja, several cars were seen packed in filling stations as their owners went in search of liquid money.

For those dispensing money, POS operators, it is a good opportunity to make fast cash! They charge exorbitant rates for withdrawals. For example, a client who wants to withdraw N5000 has to pay N500 for charges (from old naira notes) but new naira notes cost N1000 to withdraw N5000.

You have money but cannot buy something to eat, you do not have money, and you cannot buy something to eat, that is the new life in Nigeria today.

This reporter is not sure if the rates are unanimous or vary from one POS operator to another, but one thing is certain, there is little money in circulation and this is not going down well for Nigerians as the country prepares for presidential elections on February 25, 2023.

The new naira banknotes are N200, N500, and N1000. The rest N100, N50, N20, N10 and N5 remain unchanged.

The new deadline has been rescheduled for February 10, 2023.