Double hardships for Nigerians as new naira notes, fuel scarcity crippling operations

As the scarcity of Premium Motor Spirit, also known as petrol, continues to bite harder, access to the redesigned naira notes forced most merchants to close shops in an effort to prevent them from using the old notes, which are still largely were in circulation, had to collect.

This development was caused by the redesign of N1000, N500 and N200 notes. The old notes will not be legally accepted for transactions after the new deadline.

Nigerians have besieged banks and markets across the federation as reports of scarcity of businesses and normal day-to-day activities of many people ground.

Tribune Online gathered that some Point of Sale (PoS) operators in Abuja, Lagos, Ibadan and Osun charge a surcharge for new naira notes.

Some of the PoS outlets visited did not distribute the new banknotes or charged extra money for them.

In Abuja, some residents who spoke to Tribune Online in Gwagwalada and Lugbe said some PoS operators charge as much as N300 for N3,000, N500 for N5,000 and N2,000 for N20,000.

On petrol, the product is sold at unregulated prices in Lagos, Abuja, Oyo and Osun, while commuters, households and businesses continue to squander money and man-hours due to the scarcity.

The two-month scarcity has sent the cost of living down and hit businesses in Nigeria. Many petrol stations sell as high as N500/litre at the official N185/litre pump price.

Queues for petrol have continued to pop up at petrol stations in Oyo, Lagos, Abuja, Osun and other parts of the country, causing difficulties for residents and motorists trying to get their hands on the product.

Many Nigerians have had to resort to the black market for petrol due to the scarcity of the product, buying 10 liters for N7000 in Lagos Island Ibadan.

PoS operators charge a surcharge for new naira notes

PoS operators charge N100 per new naira note dispenser for customers while some only mix old and new notes on dispensers.

In Lagos, many people could not make cash transactions due to the scarcity of the new note, as merchants do not accept the old notes.

A resident named Tolu Adebimpe said she doesn’t want to make any transactions for fear of collecting old notes.

“I have to sit at home because I can’t just release the N1000 note I have and collect old notes as a charge.”

In some areas in Osogbo, the capital of Osun state, a resident who identified simply as Dupe said she withdrew N6,000 with N300 after much pleading.

“The PoS operator said she would charge N300 for N5,000 and I told her to change my dispenser to N6,000, but the PoS operator insisted I add an extra N150 to make N450. I have to get her before she agrees to accept it.

The scarcity is expected to subside if President Muhammadu Buhari approves the Central Bank of Nigeria’s (CBN) request for an extension of the deadline for exchanging old Naira notes into the redesigned one.

A seven-day grace period, commencing February 10 to February 17, 2023, has also been approved to allow Nigerians to deposit their old notes with the CBN after the February deadline when the old currency would have legal tender status lost.

“10-day extension of the deadline from January 31, 2023 to February 10, 2023; to be legally owned by Nigerians and achieve greater cash exchange success in our rural communities, after which all old notes outside the CBN will lose their legal tender status.

While, “A grace period of 7 days commencing February 10 to February 17, 2023, in accordance with Sections 20(3) and 22 of the CBN Act allowing Nigerians to deposit their old notes with the CBN after the February deadline when the old currency would have lost its legal tender status.”