Nigerians: How we’re coping with Naira redesign saga

In the last few weeks, Nigerians have been experiencing difficulties in accessing cash due to the Naira redesign policy. However, some citizens in this report speak on how they are coping with the situation; TOPE SUNDAY writes

For some Nigerians, accessing cash is now as difficult as digging a well or breaking mountains. This is well pronounced to the level that to possess cash in the Nigerian currency goes with exorbitant prices. As at the time of filing this report, most of the Automated Teller Machines (ATMs) in some of the major cities and towns in Nigeria were not dispensing cash to the satisfaction of their customers.

The genesis

Recall that the newly-redesigned N1, 000, N500, and N200 bills became a legal tender on December 15, 2022. The CBN Governor, Godwin Emefiele, had on October 26 announced plans to redesign the denominated notes, saying that the old notes would cease to be legal tender by January 31, 2022.

He said the reason for the currency redesign was to stop counterfeiting and hoarding.

Also, President Muhammadu Buhari, while inaugurating the new Naira banknotes in November 2022, expressed delight that the redesigned currencies were locally produced by the Nigerian Security Printing and Minting (NSPM) Plc.

According to the president, the new Naira banknotes have been fortified with security features that make them difficult to counterfeit, adding that the new banknotes would help CBN to design and implement better monetary policy objectives, as well as enrich the collective memory of Nigeria’s heritage

According to the CBN, effective from January 9, 2023, individuals and corporate entities could withdraw a maximum of N500,000 and N5 million, respectively, away from N100,000 and N500,000, which was previously announced on December 6, 2022.

But this development is now a subject of litigation as some governors have dragged the federal government to the Supreme Court over the matter.

PoS operators as ‘messiah’

Due to the inability of some Nigerians to use ATMs with ease, Blueprint Weekend can report that the Point of Sale (PoS) operators are reportedly doing brisk businesses, and charging exorbitant fees for withdrawals.

This paper gathered that some Nigerians are now patronising the PoS operators, who charged as high as N1000 for the withdrawal of N5000, and N300 on N1000, and in some cases, N500 or N600 for N2500.

However, since the extension order by the President for the recirculation of the Old N200 notes into the Nigerian economy, the cash availability is now a herculean task.

This medium can report that some Nigerians now find it so hard to access their hard-earn money whether through ATMs or PoS. This development had made life unbearable for some, while others re-adjusted their lifestyles.

‘Our experiences’

Narrating his experience with the Naira crunch, a Lecturer at the University of Ilorin, Dr. Oniye Ridwanullahi Kolapo, told this medium that the development had forced him to stop from using cash for payment of goods and services.

Oniye, who said if the policy is not politically motivated would solve many economic and security problems in Nigeria, said its timing is wrong.

He said: “It’s obvious that Nigerians are going through a hard time and how the individuals are surviving this unforeseen hardship is nonspecific. The Naira redesign is a good move at the wrong time. The objectives if not politically motivated are good ones that would solve many economic and security problems.

“Nigerians are seriously passing through a very hard time because the money is not readily available. What I could liken this to, is the ban on the importation of rice made by President Buhari upon his assumption of office for his first term. The ban was a good one but it brought hardship as the ban was done at a time when the local production was not sufficient. This allowed some criminal- minded farmers to hijack the opportunity and extremely inflated the price of local rice.

“You don’t just stop people from doing a thing without replacing it with another. Government has failed to make available enough cash to replace the old currencies. However, every individual is dealing with the ordeal in one way or the other. For instance, as a coping strategy, I have drastically reduced what I purchase with cash; I don’t use cash as payment unless the seller doesn’t accept a transfer and I also don’t give out for whatever purpose unless it’s very important. Unfortunately, there are some commodities you cannot get without cash. Even beggars are not left behind as people could not get cash to give them.”

On his part, an Abuja-based Journalist, Mr. Matthew Dennis, told Blueprint Weekend that the Naira crunch had once prevented him from going to work.

He said: “My view on the Naira notes crunch is that though the policy is good for Nigerians to cut down excesses, extravagance in spending, it came at the wrong time considering the 2023 General Elections. The hardship Nigerians experience in accessing the currencies is caused by connivers of managers of the Deposit Money Banks (DMBs) with politicians hoarding and swapping of over 400 Billion disbursed by CBN to them. This money is meant for the masses but it was hoarded leading to these ordeals.

“However, narrating my experiences on the new naira notes, I was unable to come to office on certain days because I couldn’t access the currencies. Also, I was embarrassed precisely last Saturday at a Garden where I went to get some bottles of beer and pepper soup from a salesgirl when I wanted to pay for my service by transfer. My bill was N3,200 so I transferred N3,600 for the lady but she insisted that I should pay N3,700 for the service which I refused, she started raising her voice and immediately I had to report her to her Employer who later pleaded with me to let go.

“Another ordeal I encountered on the new Naira notes scarcity was that I went to a particular PoS to withdraw the sum of N4, 000 and after inserting the transaction by the PoS agent I was debited without collecting the money, I visited my bank to complain but due to the crowd I couldn’t gain access into the banking hall to meet the customers Care unit.

“Since that day which was January 27, 2023, I cannot tell whether my money has been refunded into my account or not. Therefore, it’s a sympathetic situation that we’re passing through this agony at this critical time.”

However, in what appears as a sharp contrast from Oniye and Dennis’ experiences, an Abuja resident, Samuel Afolabi, told this medium that the development had forced him to feed on bread and Bama for almost three-days, regretting that despite having money in his account, he could be subjected to such a lifestyle.

Afolabi said: “This policy (Naira redesign) is good, but its implementation and timing are wrong. Before, we were buying our own money, but now, we can’t. For almost three days, I ate bread and Bama because I could not access cash, but a woman in my area accepted the transfer, and I decided to patronise her. This is very terrible.’’

Another resident, Joshua Peter, alleged that some food vendors in his community had connived with the PoS operators to charge N100 on every N500 to pay for a plate for food.

Peter, who resides in Mpape Community in the FCT, said: “In our community, most of the food vendors are now using POS to sell food. Some of them are not the owners of the PoS, and the operators charge N100 on every N500 to pay for a plate of food. This has worsened the situation, which we were managing before. Some of us do not have any option than to patronise them.”