By Francis Akinnodi
The scarcity of N100 notes in Nigeria is causing headaches for small business owners, disrupting daily transactions.
Traders, transport operators, and Point-of-Sale (PoS) agents who spoke with The Hope said the unavailability of the lower denomination is a challenge to their ability to operate smoothly.
Many respondents accused commercial banks of hoarding the currency, while others speculated that the Central Bank of Nigeria (CBN) has slowed down the printing of the notes.
With no clarity on the cause, the shortage has left many questioning the country’s cash supply system.
Some Nigerians attributed it to inflation, which raised the demand for smaller denominations in everyday transactions.
A pepper and tomato seller, Aderonke Ajayi expressed her frustration over the scarcity of N100 notes, stating that there are days when she would transact without holding a single one.
While her sales don’t typically involve N100 notes, she said there are instances when customers make purchases that require giving change.
This has resulted in lost income, and in some occasions, she has had to offer customers extra peppers instead of change to accommodate their needs.
For vendors like Agnes James, who sell raw foodstuff in Oja Oba in Akure, the scarcity of N100 notes has forced her to get creative with money management.
She mentioned that on occasions when she doesn’t have the required balance, she has resorted to adding sweets and biscuits to her transactions to make up for the deficit.
“I have lost a lot of my gains to this scarcity and you know there is not so much gain in this business.
“There are times in a day you may tell ten customers to go with the change, some will come back and give you when they get and some won’t come back. How do I recover from that if I continue that way?.”
A civil servant, Ola Adeniyi, who relies on public transport, said many bike riders and taxi drivers have started to charge extra when passengers don’t have the exact fare.
For instance, if the fare is N400 and a passenger only has N500, the drivers often insist on taking the higher amount, leaving the passenger with no choice.
“I am an usher in my church, so sometimes, I am lucky and change enough from the offering, but these days, you won’t even see N100 notes like that. It is tiring!” he said.
Recently, the House of Representatives urged the CBN to begin the gradual withdrawal of old naira notes and ensure the availability of new notes for Nigerians.
This call generated concerns among citizens, stemming from the frustrations experienced during the cash crunch that occurred when the CBN introduced new N200, N500, and N1,000 notes in October 2022, with circulation starting in December of the same year.
However, the CBN quickly dismissed the calls by the lawmakers.
Meanwhile, an economist, Sanya Ogunsakin raised concerns about the way CBN is handling the issue of currency, saying that the apex bank has been withdrawing money from circulation without adequately replacing it with new notes, which according to him is problematic.
He specifically highlighted the N100 note as crucial for everyday transactions, emphasizing that the CBN needs to issue more of these notes quickly.
He is also worried that the inadequacy of new currency, especially if the use of old notes is phased out, could lead to fears of scarcity.
“People will start having the fear of scarcity, which brings issues of hoarding, and when people start to hoard the money, as a matter of urgency, there should be serious orientation about it, and there should be much more availability of the N100 note by the CBN.”
The economist, however, attributed the scarcity to inflationary pressures.
He said the problem is not peculiar to cities, saying people in rural areas also experience the shortage of lower denominations because inflation has eroded the naira’s value.
He warns that if Nigeria faces hyperinflation, even the N200 note could become as rare as the N100 note is now.
A cashier at a Nigerian bank, Temitope Kayode noted that many customers do not value being paid in N100 notes, and those who specifically request for it are not significant.
A POS operator, Mercy Joy said she is always frustrated the moment she exhausts the ones she got from the church on Sundays.
“The notes are very scarce. I exhausted the few I got from the church on Wednesday. I accommodate any changes that require N100 in withdrawals if the customer does not have the physical note to pay.
“But for other denominations, particularly N1000 and N200 notes, I have plenty of them.”
A commercial tricycle operator, Kunle Arogundade, said he always asks passengers if they have N100 balance to avoid problems.
“Like today, since morning the prevalent naira notes are N1000 and N200. Even N500 is also scarce but the rate cannot be compared to N100 notes.
“I would ask passengers boarding my Tricycle if they have N100 balance before they enter because I don’t want to have problem with anybody.”
Mr Okon said the notes are extremely scarce even at petrol stations noting it is N200 and N1000 notes that are prevalent.