Scarcity of cash affects purchasing power
By Abimbola Mohammed
The average Nigerian has had his purchasing power reduced by over fifty percent due to the effect of the Central Bank of Nigeria (CBN)’s policy of redesigning the 1000, 500 and 200 naira notes, and controlling excessive cash in the country.
This has in turn affected person-to-person and person-to-business transactions across Nigeria due to the scarcity of cash. Consequently, this has noticeably affected business transactions among buyers and sellers across the country.
Consumers across Nigeria, both in the in rural and urban areas, are currently experiencing hardship as a result of fuel and currency scarcity.
A survey by MARKETING EDGE revealed that the rate of consumption dropped with many consumers going only for essential needs.
MARKETING EDGE team visited Oke-Arin a grocery market in Lagos Island, the will always crowded with wholesalers, retailer and consumer has become so deserted.
Speaking with MARKETING EDGE, a whole seller Mrs. Aina Ojikutu, who sells wine said it has been so difficult to even sell 10 cartons of wine in a day due to scarcity of cash and challenges they entered while using online banking.
Her words: “The scarcity of cash is a big challenge for us traders, I normally sell almost hundreds of cartons of wine daily but since this change of currency started it has been difficult to make sales. We are just managing; I have not sold up to 5packs as I am speaking with right now. I just pray that the government finds a solution to this policy before it gets out of hand.”
Another trader that sells provisions at the same market, stated that sales have dropped drastically as people now prepare to buy essential needs rather than what they can do away with.
Her words: “I still believe that my coming to market today will not be in vain because as it stands, I haven’t been able to make any sale since I opened the shop. Today been a Thursday that we don’t open until 10am couple with the low scarcity of cash and even fuel is really contributing to low sales.”
In the same view when the same market survey was carried out at Ikorodu Market, traders lamented on low sales.
According to a meat seller, Mr. Akeem he said even though what is sold is essential to the body there is still no sales.
“You can imagine that we are selling meat and complaining about lack of sales, what should other people say? We the sellers don’t even have enough cash to buy cows from the abertures because we don’t have cash to buy. Another problem we are having is the challenges of transferring money online, we have encountered so many failed transactions which has resulted in us not collecting transfers from our customers and even buying.”
In the same development, a pharmacist also noted that sales dropped for some days because people don’t have enough cash to buy medication.
“It really a tough one since the end of January, people don’t have cash yet online banking is not forthcoming. Because of our kind of business we are forced to sell medicine to people because we believe in saving lives first but for some days now we had to stop online transactions from people because we discovered that when they transfer money to us we don’t receive it. Many people went with our money because of the delay in receiving the alert.”
A visit to Ogba park, some commuters explain their experience on how it has been difficult for them to get cash to move around.
Olabisi said she almost got stranded at the bus park two days ago because she didn’t have cash and when she sought an alternative of using POS the charges were too much.
“I don’t understand where we are going in this country; I could not pay for my transformation fair yesterday because I ran out of cash. I decided to use the ATM but it wasn’t dispensing, I went to a POS vendor who wanted to charge me N300 on N1,000 naira. I was at the bus stop for a very long time before I saw someone who helped me for the fair.”
Commercial bus driver also shared his experience, saying some passengers now offer to do transfers when they board the bus.
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