This post is about Naira Scarcity in Nigeria today and Latest CBN News Today 15th May 2023
In recent times, Nigeria has been facing a significant economic challenge with the scarcity of Naira, the country’s currency. This scarcity has caused a lot of concern among the citizens, as it has resulted in increased inflation, high cost of goods and services, and a general decline in the standard of living. The Central Bank of Nigeria (CBN), as the regulator of the financial system, has been making efforts to address this issue, but the problem persists. In this post, we will be discussing the Naira scarcity in Nigeria today, its impact on the economy, and the latest news from the CBN regarding this issue as of May 15th, 2023. We will also examine the measures being taken to combat the scarcity of Naira and restore stability to the Nigerian economy.
Farmers lament massive losses as naira scarcity keeps buyers away
Daramola Toluwalope, a poultry farmer based in Agege, Lagos State, early this year looked forward to taking her business to the next level. She was not frivolous about it. She had her plans perfectly laid out and looked forward to having a healthy balance sheet at the end of the year.
Shortly after the Menitos Deport Farms CEO started executing her plans, the challenge of naira scarcity occasioned by the CBN naira redesigning policy crept in and shattered her plans.
“The cash scarcity shut down our production. I cannot afford to produce. Where am I going to get funds from, especially with no sales? Chickens will not want to hear wait till tomorrow. They want to eat now. Knowing that I can’t sustain their feeding, I had to stop production,” she said as she vociferously decried the apex bank’s policy that has crippled many startups.
“We normally get credit facilities from the feed suppliers. When the cash scarcity problem started, many of them withdrew the credit facilities and started insisting that we must pay to pick up the feeds.
“A good number of the electronic transfers that were done to them did not go. When we finished the batch we had taken from them, we just stopped production completely.
“We don’t produce anymore. We only managed to finish the birds we had and that was basically at a loss,” she said.
She noted that it was not easy selling the ones “we processed because people were managing their money. A client that was buying a carton reduced it to half of a carton.
“There was a food vendor who used to patronise us. She stopped using chicken because the price went as high as N2,500 per kg.
“Now, when we process chicken, all the accessories like the legs, the neck will go, but people will not buy the full chicken. We can’t say that we are not selling but the sales are nothing like before.”
Following the unexpected setback, she said she has had to go back to the business of web designing.
New Naira Notes Scarcity: CBN May Phase Out Newly Redesigned Notes
There is a growing belief among Nigerians that the Central Bank of Nigeria is gradually removing the recently redesigned banknotes from circulation. This belief has been fueled by the scarcity of the new notes at ATMs and banks. Bankers have also expressed surprise at the scarcity, suggesting that it may be due to a shortage of notes.
Many are speculating that the Central Bank of Nigeria (CBN) may be reconsidering its poorly executed naira redesign policy due to the scarcity of new notes both at ATMs and over the counter.
As the circulation of new naira notes steadily declined, Nigerians were left to engage in wild speculation, as evidenced by the Credit: Maurice Greene photograph sourced from Getty Images. This decline in circulation began after the apex bank had to withdraw its plans to replace old notes, due to a Supreme Court order invalidating the withdrawal.
Many believe that due to the pressure on the CBN to ease the cash crunch, which nearly crippled the economy between February and early March this year, it has decided against reprinting the new notes.
Nigerian Breweries Seeks N25bn Cash via Commercial Papers as Naira Scarcity Hits Sales
Nigerian Breweries has quoted N25 billion worth of commercial papers to boost its operations. The move comes as naira scarcity affected company sales in the first quarter of 2023
Despite the challenges, Nigerian Breweries remains committed to its operations in Nigeria and optimistic about the future of the Nigerian market.
Latest CBN News Today 15th May 2023
Popular loan apps included in FG’s updated list of banks, digital money lenders
About 173 companies have been added to the list of approved loan apps and digital money lenders by the Federal Competition and Consumer Protection Commission (FCCPC). This new list was released in compliance with the FCCPC’s March 27, 2023 deadline for registration of these companies.
Over 100 apps receive FG’s approval
About 119 of the companies received full approval, and 54 got conditional approval pending when they fulfil other terms and conditions set by the Commission, a Nairametrics report said.
After issuing updates on loan apps in Nigeria, Google will delist the unregistered apps from its play store, asking them to provide approval certification from FCCPC or face removal.
Google had slated January 31, 2023, as the deadline for the apps’ removal before moving it to March 27.
FCCPC clarifies the reason for the approval
According to FCCPC, it drew up the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending of 2022 in partnership with the Joint Task Force (JTF) to promote transparency, fairness, and beneficial alternatives to lending opportunities in Nigeria.
The activities of loan apps in Nigeria necessitated FCCPC’s recent action following a proliferation of illegal loan apps in Nigeria, with consumers reporting rights violations and sharp practices, among others.
Findings have shown that interest rates charged by loan apps violate lending ethics. They also involve in the public humiliation of defaulters and engage in privacy violations.
List of approved loan apps
- Sycamore Integrated Solutions Limited
- Trade Depot
- Tajow Investment
- Blue Ridge Microfinance Bank Limited
- Grolatech Credit Limited
- Branch International Financial Services Limited
- P2vest Technology Limited
- Creditwave Finance Limited
- Keenest Tech Service Limited
- Fairmoney Micro Finance Bank
- Altracred Finance Investment Limited
- Crevance Credit Limited
- Menacred Company Limited
- Afrowide Development Ltd
- Red Planet Nigeria Limited
- Afrofirst Mobile And Technology Company Limited
- Rankcapital Limited
- Ibs Golden Investment Company Limited
- Lendvisery Services Limited
- Renmoney Microfinance Bank Limited
- Swipebill Technologies Nigeria Limited
- Hometown Fintech Limited
- Giasun Technology Nigeria Limited
- Be Resources Limited
- Rockit Lenders Nigeria Limited
- Pivo Technology Limied
- Yes Credit Company Limited
- Irorun Technologies Limited
- Csense Limited
- Supreme Help Cooperative Society Limited
- Orcom And Orcom Bussiness Suport Limited
- Payhippo Limited.
- Easycheck Finance Investment Limited
- Quark Financial Nigeria Limited
- Edmond Solutions Company Limited
- Ted Rocket Limited
- Penaid Limited
- Arve Limited
- Dover Credit Limited
- Ragekay Global Investment Limited
- Maywood Lending Limited
- Linkpark Technology Nigeria Limited
- Mangnet Lending Limited
- Rubystar Global Limited
- Bestfin Nigeria Limited
- Fubri Century Company Limited
- Berly Spring Global Limited
- Rock Financials Limited
- Phoenix Payment Solution Limited
- Value Driver Technology Solution Limited
- Nextpayday Limited
- Blackcopper Service Limited
- Trafalgar Associate Limited
- Windville Financial Nigeria Limited
- Orange Loan & Purple Credit Limited
- Carbon Microfinance Bank Limited
- Neo-Link Technology Company Limited
- Finnew Fintech Limited
- Otp Internet Technology Limited
- Red Harbor Fintech Limited
- Paylater Hub Limited
- Skitloan Nigeria Limited
- Raceova Nig. Limited
- New Credage Nigeria Limited
- Betterlending Company Limited
- Fast-Point Intergrated Limited
- Apex Lending Limited
- Piska Tech Nigeria Limited
- Princep Credit System Limited
- Omalend Service Limited
- Pockful Finance Limited
- Highcredit Nigeria Limited
- Hollandale Nigeria Limited
- Pay Financial Technology Service Limited
- A1 Capital Solution Limited
- Newedge Finance Limited
- Papichou Technology Limited
- Goharvest International Limited
- Mino Sparks Limited
- Xgo Finance Limited
- Primera Microfinance Bank
- Credit Tech Lending Company
- Prosperity Archipelago Limited
- Finesest Limited
- Singularity Technology Nigeria Ltd
- Econ Mart Fintech Limited
- Pennee Technologies Limited
- Oxymon Solution Limited
- Lantana Technology Limited
- Applink Capital Nigeria Limited
- Yegon Tech Limited
- Fezotech Nigeria Limited
- Eric Vsta Limited
- Moblaspay Company Limited
- Paycredit Limited
- Niz Services Limited
- Mino Sparks Limited
- Flo Wood Lending
- Liberty Assured Limited
- Uni Technology Nigeria Ltd
- Trade Lenda Com Limited
- Creditville Microfinance Bank Ltd
- Letshego Microfinance Bank Ltd
- Kiowope Capital Limited
- Veendhq Limited
- Ucplus Advance Limited
- Maven Finance Limited
- Aella Financial Solutions Limited
- Fluna Capital Limited
- Newedge Finance Limited
- Ta Prime Limited
- Regxta Global Service Ltd
- Provest Limited
- Jm Rubinus Limited
- Crossroads E-Payment Systems Limited
- Consynergy Limited
- Fintcred Innovation Limited
- Afrosay Fintech Limited
- Mim Finance Company
Naira crashes against US dollar as Nigeria’s foreign reserves hit 20-month low
On Thursday, May 11, 2023, the Nigerian naira experienced a depreciation against the US dollar at the unofficial foreign exchange market. This depreciation followed a significant drop in the naira’s value on Wednesday, May 10, 2023, which was attributed to heightened demand for dollars by importers at the parallel market, colloquially known as the black market.
Reports indicate that on Thursday, the naira closed at N746 per dollar on the black market, reflecting a 0.26% decline in value compared to the N744 to a dollar rate it had exchanged on Wednesday.
The Naira also experienced a decline of N6 against the dollar in the peer-to-peer market, a platform many online shoppers and crypto traders use for currency exchange.
The day’s trading ended with the naira closing at N758/$1 compared to its value of N752/$1 the previous day.
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