Brands patronage shrinks as Nigerians reject old naira notes
By Oghale Mafuru
Brands particularly those in the Fast-Moving Consumer Goods, FMCG, sector has witnessed a drastic decline in patronage following the rejection of the old naira notes by most Nigerians despite Supreme Court’s order restraining the implementation of the deadline for the use of the old naira notes as legal tender in the country.
MARKETING EDGE market insights revealed that some superstores, filling stations and vendors have started rejecting the old bank notes leaving most buyers unable to make purchase or pay for goods.
Fred Ejighe, a vehicle owner complained that most of the filling stations he visited are refusing the old naira notes, a development which has forced him to succumb to the use of Point of Sales, PoS vendors despite the exorbitant rates.
Hellen Osegor, a vendor in one of the popular markets in Lagos affirmed that she is rejecting the old naira notes because she could no more issue them out. While revealing that purchase has reduced drastically, she maintained that she will continue to insist on the new naira notes.
However, some supermarkets visited are insisting on bank transfer and payments via ATMs and it can be observed that consumers purchase has declined considerably.
Consumers who are currently in a state of despair had the option to either wait in endless queues at the banks or pay exorbitant rates to withdraw cash from Point of Sales, POS, operators. Currently, it costs #2,000 to withdraw #10,000. This further weighs in on the already dwindling purchasing power of consumers.
According to intelligence report, the rejection of the old naira notes is currently happening in major cities in the country including, Abuja and Delta.
Recall that following the redesigning of N200, N500 and N1000 notes by the Central Bank of Nigeria, CBN, January 31 was announced as deadline for use of the old notes.
However, the apex bank was forced to extend the deadline to Feb. 10 after which the notes would seize to be legal tender due to public outcry.
Following the suit by governors of Kaduna, Kogi and Zamfara requesting an extension, beyond Feb. 10 as announced by the CBN, the Supreme Court gave an order suspending the Feb. 10 deadline till Feb. 15, when the suit would be determined.
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