NEW NAIRA NOTES: EXPECTATIONS DASHED, BUSINESSES SHUT DOWN AS OLD NAIRA NOTES PHASE OUT

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By Aishat O. Momoh

The Lagos Chamber of Commerce and Industry (LCCI), has said that the high expectations for the easy implementation of the new notes for commercial transactions across the nation when they were introduced in December last year, has been dashed as a lot of people have lost their businesses, time and money.

This was mentioned in a statement signed by the Director General of LCCI, Dr. Chinyere Almona, dated 31st January, 2023.

In the statement the Industry mentioned that the Central Bank must educate the public about any unclarified issues with the dearth of the new Naira notes, stressing that with the present currency crisis, citizens should expect more.

The statement reads, “With the launch of the redesigned Naira notes last December, expectations were high for the smooth transition to the use of the new notes for business transactions across the country.”

“We regret to note that expectations have been dashed, business deals impeded, and loss of time and value experienced by many. The Central Bank needs to enlighten the public on grey areas about the scarcity of the new Naira notes in addition to strengthening its policy implementation capacity. This is the minimum expectation in the face of a currency crisis in which we find ourselves.”

“The new Naira redesign has triggered varied reactions and feedback that suggest that related issues like the phasing of old currency notes, withdrawal limit, and the scarcity of new notes may have started to impact businesses and social livelihood beyond intentions. While banks have endeavored to meet the currency demands of their customers through Automatic Teller Machines, and electronic transfers, the scarcity of the Naira has rendered their efforts ineffective.”

“Businesses are suffering the consequences of the CBN currency management policy lapses. Regarding the deadline extension for phasing out old notes, the Chamber does not see any value in this if the scarcity of the new Naira notes persists.”

“While we support the drive toward a cashless economy, redesigning the Naira and phasing out old currency notes could have been better planned and implemented with no hardship for businesses and individuals.”

A civil engineer who spoke with Hotjist in Lagos said; “I am closing my construction sites till further notice. Labourers on site are demanding only cash payments, no cash even from POS Operators”.

While our correspondent went through a few markets and roads in the Ikeja, Lagos; many street hawkers and a few shops have stopped operating due the cash shortage.

Many Lagosians also complained of their inabilty to withdraw cash from ATMs and POS operators.