Following the Naira Scarcity in Nigeria, GoldenNewsNg has compiled Latest CBN News and Update on Naira Notes Today 1st May 2023.
Farmers lament massive losses as naira scarcity
Naira Scarcity Caused by CBN Policy Causes Farmers to Lose Produce and Revenue
Introduction Many farmers in Nigeria have suffered losses due to the scarcity of the Nigerian currency, caused by the Central Bank of Nigeria’s (CBN) naira redesign policy. These losses have had a devastating effect on their businesses, forcing many to close down or diversify into other areas to stay afloat.
Poultry Farmer’s Story One such example is Aramola Toluwalope, a poultry farmer based in Agege, Lagos State, who had plans to expand her business earlier this year. However, when the naira scarcity issue arose, caused by the CBN policy, her plans were thwarted. She could no longer afford to produce chicken and had to stop production because she could not obtain funds for feeds due to the withdrawal of credit facilities from suppliers. When she managed to sell the processed chickens, the sales were much lower than before and barely covered the cost of production.
Toluwalope had to rely on her web designing job to make ends meet as sales from chicken were barely sustaining the shop. She refused to buy naira to fund her business as it would still result in a loss, and she was not prepared to run her business at a loss.
Crop Farmer’s Story Tanimu, an Abuja-based crop farmer, and his colleagues had also invested heavily in their farms but had to let their produce rot away as they were unable to sell them. They had no bank accounts, and some buyers who wanted to pay through electronic transfers could not do so, causing losses.
The CBN policy caused a scarcity of naira, making it difficult for farmers to obtain the necessary funds for their businesses, leading to significant losses. This issue has affected many farmers in Nigeria, and some have had to abandon their businesses entirely.
Conclusion It is essential for the CBN to consider the impact of its policies on small-scale farmers, who are the backbone of Nigeria’s agricultural industry. This sector is critical to the country’s food security, and the government must ensure that policies do not have a detrimental effect on farmers’ businesses. It is necessary to find a solution that will benefit both the government and the farmers, ensuring that the agricultural sector remains sustainable.
Despite complaints of scarcity, CBN insists recoloured naira notes in circulation
Despite complaints about its scarcity, the Central Bank of Nigeria (CBN) confirms that the redesigned naira notes are still in circulation. Isa Abdulmumin, the acting director of the Corporate Communications Department at CBN, stated in a Sunday press release in Abuja that both the new and old currency notes are circulating side by side. He added that the apex bank has been receiving a substantial amount of the redesigned banknotes from the Nigeria Security Printing and Minting Company Limited, and that there are no plans to phase them out of circulation. The bank is committed to providing the approved indent for the economy’s smooth functioning, and the redesigned and old notes will continue to be legal tender and circulate together for transactions until the old N1,000, N500, and N200 banknotes are eventually phased out on December 31.
The statement was issued in response to social media rumors that the apex bank was contemplating withdrawing the recently redesigned N1,000, N500, and N200 currency banknotes from circulation.
Cash scarcity crippled Nigeria’s economy, says UN
The Nigerian economy has been severely impacted by the recent shortage of the naira, according to a report by the United Nations Conference on Trade and Development (UNCTAD). The report states that the informal sector has been hit the hardest, and that the decline in oil production is expected to further affect the country’s finances in 2023. UNCTAD’s ‘Trade and Development Report Update; Global Trends and Prospects (April 2023)’ reveals that the scarcity of cash resulting from the replacement of high-denomination currency notes has hobbled the economy, particularly in the informal sector. Furthermore, the report notes that the ongoing decline in oil production and rampant oil theft pose a significant threat to Nigeria’s already strained finances. The report also states that the African economy is expected to grow by 2.5 per cent, which is lower than last year, and insufficient to combat poverty on the continent, due to weaker external demand and tighter financial conditions.
