Gainers And Losers Of The CBN naira Policy
Channel: MoneyTalk With Gershon Moses
Date: 2023-03-26

In Nigeria, the Central Bank of Nigeria (CBN) has been phasing out old naira notes and introducing limited new notes into the economy, which has led to cash scarcity and affected economic activity and living standards. As a result, the Chartered Institute of Bankers of Nigeria (CIBN) has advised banks to prioritize the safety of their staff and customers and only open if they have adequate security and cash supply to meet customer demands.

Despite this, some sectors have seen gains. Supermarkets and malls have recorded impressive sales growth as individuals prefer to pay with their ATMs. Transporters such as bus drivers and motorcyclists have been selling cash to POS agents at a premium, while digital banks and FinTechs have seen an opportunity to increase their customer base.

However, everyday Nigerians have had to spend hours in long queues to withdraw cash, and some have even paid as much as N300 to withdraw N1,000 cash. Petty traders who rely on cash transactions have been affected as more people move to stores that accept POS and mobile transfers. Houses of worship, banks via deposits, Nigerians in rural areas, and POS agents have also been affected.

The phasing out of old naira notes has had both positive and negative impacts on various sectors in Nigeria. While some sectors have seen gains, everyday Nigerians and those who rely on cash transactions have been negatively affected by the cash scarcity.

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