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Nigeria Suffers Cash Shortage Due To This!
According to experts and business associations, Nigeria’s efforts to replace its paper money with newly produced currency notes have resulted in a cash scarcity that has made it difficult for citizens to acquire the things they need and forced businesses to shut down all around the West African country.
According to the Central Bank of Nigeria, the redesigned 200 (43 U.S. cents), 500 ($1.08), and 1,000 naira ($2.17) notes, as well as new restrictions on large cash withdrawals, would help prevent money laundering and make digital payments the standard in the largest economy in Africa.
According to Ayokunle Olubunmi of Nigeria’s leading rating agency, Agusto, and Co., the procedure to replace the old currency notes is “rushed,” and commercial banks don’t have enough new cash to deliver to consumers.
You can’t legislate a change in habit, according to Olubunmi, because the central bank “doesn’t want us to be spending cash; they want us to be performing transactions online.” “You need to make sure those channels are trustworthy and get people to see the reasons.”
The central bank governor, Godwin Emefiele, stated over the weekend that 75% of the 3.2 trillion naira ($7.2 billion) in circulation in Nigeria as of October had been deposited with financial institutions.
He gave Nigerians till February 10th, an additional 10 days, to deposit their old currency.
The Associated Press discovered that as of Monday, some financial institutions were still distributing the outdated notes to consumers, even as more Nigerians were depositing their old currency in banks.
In light of this, customers of banks claim they can only withdraw a small amount of cash and pay expensive fees for each transaction.
