What is the Naira to Naira rate in your area? Never in my life have I thought a day would come when Nigerians will buy Naira Notes (our legal tender) in Nigeria.
The Nigerian currency is currently experiencing a scarcity, which has affected all sectors of the country. The government has been unable to provide enough money for people’s needs, leading to scarcity. Many people are struggling to buy food and other essential items because of the lack of money in circulation.
The scarcity of the naira has recently become a significant concern for the average Nigerian. The cash shortage in circulation has made it difficult for people to access their own money. It has also led to a rise in prices and a decrease in purchasing power. This has profoundly impacted the daily lives of Nigerians and has contributed to increasing poverty and financial hardship in the country.
The Why
Due to the redesign of some naira notes and the recently imposed withdrawal regulation, the CBN has completely embraced the cashless strategy. According to analysts, Nigeria’s cashless policy will increase customer choice and convenience in cash transactions. It should enable transactions to be safely guarded and monitored in case of fraud or theft, and promote the growth of mobile banking.
However, the situation is far from beneficial. Not only are Nigerians unable to access the new naira notes, but the old notes are also very scarce. In order to access their own money, millions of Nigerians have been compelled to spend outrageous sums of money. There are many people who are unable to get money from nearby POS or ATM machines, leaving them without the ability to buy goods or pay for services. In addition to this, Nigerians have also had problems accessing their bank applications or making transfers. To top it all up, people have to wait in long lines outside under the scorching sun to use the ATMs at banks.
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What does this mean for an average Nigerian?
The scarcity of the naira notes has affected the average Nigerian in many ways. From transportation to the way they decide what to eat for lunch, it’s clear that this is a national crisis. Here are some examples:
The increased cost of living:
When there is a shortage of Naira in circulation, prices for goods and services tend to increase. This means that people will have to spend more money to purchase the same items they would have been able to buy for less in the past.
Reduced access to basic necessities:
The scarcity of Naira can make it difficult to access basic necessities like food, shelter, and medical care. This can result in increased poverty and hardship for many people, particularly for those who are already struggling to make ends meet.
Inflation:
When the supply of naira decreases, the demand for goods and services increases, causing a rise in prices. This results in higher costs of living for the average Nigerian, making it more difficult for them to make ends meet.
Reduced purchasing power:
The decrease in the supply of naira means that the average Nigerian has less money to spend, reducing their purchasing power. They are unable to buy the things they need, and may have to cut back on their spending.
Delays in payment:
Businesses that rely on cash transactions may experience delays in payment, as there is not enough cash available to make payments on time. This can have a negative impact on the economy and contribute to the overall financial difficulties of the average Nigerian.
Increased poverty:
The combined effects of inflation, reduced purchasing power, and difficulty accessing cash can lead to increased poverty for the average Nigerian. They may struggle to provide for themselves and their families, leading to a decline in their standard of living.
The events of the past few days have raised the question Is Nigeria truly ready for a cashless economy? We have seen how difficult life can get without cash, and how easily violence can erupt when we are faced with issues such as this. It is obvious that if we do not equip our financial institutions well enough to handle a cashless economy, plunging the citizens into this suddenly might just be a wrong move.
What have you been experiencing? Share your experience with us.
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