Naira scarcity Persist, traders ration cash as POS operators blame Banks for double standard
NIGERIA, Jan. 2 – Nigeria’s current cash scarcity is biting hard on people in the remote parts of the country. Some rural farmers and petty traders have voiced out their frustration over the lingering cash scarcity in the country, saying the unfortunate incident has been affecting their businesses adversely.
Some petty trader and farmers who spoke to Biztv24 said they stopped keeping their cash in the banks to avoid the funds getting trapped and also the negative impacts it has on their business.
Small and medium-scale enterprise associations who spoke to some media houses said the cash crunch would further weaken the government’s efforts to drive financial inclusion, especially at the grassroots.
A petty trader and farmer in Rivers State, Madam Blessing Anayor, said, “I am finding it difficult to cope with the Naira scarcity all my chicken I couldn’t sell it the are also dying, I have to result to killing and smoking it. When buyers come they will say to cash, it they go to POS they will hike the price of the charge. Please I call on the government to release cash so that our business will thrive. I blame the Banks, CBN and government for this situation.”
A POS operator inn Aluu area of Port Harcourt simply identified as Miss Amadi said, “The situation has not been easy relly, we are the problem of ourselves. I went to the bank, I won’t mention the name of the bank. What they are giving us is N5,000.00 per person. Surprisingly one person came, a POS operator, and they gave the person N4,000,000.00. While from my house to the bank I spent N1,500.00, it not easy at all for us. If you go to retailers and wholesalers to ask them for cash as small POS operator, they will charge you very high to give you the cash. I know that there are some POS operators that are very wicked and I don’t welcome that, I always do what I will love others do to me. One POS operators came to tell me that I am spoiling their business, but I don’t really care about that. Though we are the problem of ourselves, however I will blame the banks for this situation.”
Not withstanding assurances from the Central Bank of Nigeria (CBN) that there is enough cash in the economy, Nigerians have continued to decry the cash scarcity, as many Automated Teller Machines (ATM) lack funds while banks are rationing cash over-the-counter.
Speaking on the impact of the cash crunch on financial inclusion drive, as reported by The PUNCH, the President of the Association of Small Business Owners in Nigeria, Dr Femi Egbesola, said it would have a negative effect.
He said, “People are trying to get their businesses structured and take their monies to the bank. With what is happening now, the confidence is eroded, especially at this festive period. People, mostly in the micro sectors, need cash for their daily transactions.
“It is very unfortunate that some of them had to take their monies to the bank, not knowing that a thing like this would happen, and when they are expecting to get their monies from the banks, they are unable to withdraw it.
“A lot of transactions in the economy still go with cash. Grass root business is still cash dependent, and when there is no cash, there will be apathy in going to the bank to lodge their funds.”
The Vice President, Nigerian Association of Small and Medium Enterprises, South-West Region, Solomon Aderoju, said, the cash crunch would affect the confidence of those at the grassroots in the banking sector.
He said, “Financial inclusion is to engender opening of accounts to ensure that you don’t keep your money under your pillow. It is also to help the SMEs to have a structured business, and also to control money in circulation. But with what is happening now, the confidence is lost. People will not have the confidence to keep their monies in the banks.”
