AS naira scarcity continues to bite hard on Nigerians, some residents of Lagos State have resorted to begging to survive. Those who can’t beg are staying indoors and wallowing in hunger and lack.
The sad development was made known to Saturday Tribune by chairmen of Community Development Committees (CDCs) in the state as well as market leaders ruing the plight of their followers.
Findings by Saturday Tribune revealed that cash scarcity, coupled with the exorbitant charges on transaction by Point of Sales (PoS) agents, has brought about an increase in the prices of commodities, just as the situation is crippling businesses that are heavily cash-dependent.
The Central Bank of Nigeria (CBN), on October 26, 2022, announced the redesigning of the N200, N500, and N1, 000 banknotes but since the release of the new bills, many residents of the state with a population of over 22 million and their businesses have been contending with the scarcity of both the new and old notes. The extension granted by the apex bank for the expiration of the old notes as legal tender didn’t appear to have helped the situation of the residents. An average CDC consists of about four Community Development Areas (CDAs).
As the crisis over the scarcity persists with the attendant socio-economic turbulence, Saturday Tribune surveyed markets across the state to feel the pulse of the residents, especially traders who are the major victims.
At the Oyingbo Market, Chairman, Perishable Traders Association, Mr Victor Chukwuogo, described the cash-scarcity situation as hellish.
According to him, the scarcity is crippling trading activities as many traders dealing in perishable commodities at the market have run into losses.
“With the cash scarcity, the Federal Government is encouraging hardship-induced fraud as many Nigerians are forced to engage in shady deals to survive,” Chukwuogo claimed.
He, therefore, called on the Federal Government and the CBN to mitigate the sufferings of Nigerians, especially traders, whose daily survival depends on the volume of trade they engage in.
Inside Oyingbo market
Chukwuogo said: “The impact on us is very alarming. The Federal Government and the CBN should make a U-turn on the policy because traders are turning into beggars and their perishable wares rotting away.
“Right here inside Oyingbo Market, a woman came into the market with her ATM card. She wanted to buy foodstuff of N2,000 but pleaded to transfer N10,000 such that she would be given N8,000 in return. She did this because she could not afford to pay the N2,000 charged by PoS agents.
“Some people would walk around the market without buying anything. Even some of the traders are beginning to complain about inability to pay for commodities bought. We buy foodstuffs from the north but with the current situation, paying for the commodities have become an issue because of network failure and declined transactions. Many of the banks don’t have network for online transactions, yet the Federal Government and CBN are hell-bent on cashless policy.
“People come here to beg for money. Those who want to pay their children’s school fees and other things, they couldn’t. I am affected, too. I am an exporter but I can’t process my goods because of the scarcity of cash. Our suppliers from the north won’t release their goods on credit, yet we cannot access our cash.
“PoS agents in the market charge N200 extra if you want to withdraw N1,000 and N2,000 extra charge on N10,000 cash withdrawal.
“What is the gain on foodstuff business that a trader would be paying such amount on PoS cash withdrawal? The cash scarcity is crippling our businesses and turning traders into beggars. Many are sick but can’t afford to get treatment.
“The Federal Government is encouraging fraud because with the hardship. Many Nigerians will be forced into shady deals to survive. You can see a video of a mature man in a banking hall naked and crying to be given his money. It is not well with us. May God heal Nigeria.”
Like Oyingbo, like Idumota
Similar situation exists in Idumota Market in Lagos Island where traders have decided to stay at home due to lack of patronage and absence of cash to run their businesses.
Sikiru Ayinde, a trader in Oke-Aliji Market in Idumota, Lagos, narrated the plights of traders at the children wears’ section of the market.
According to him, since the scarcity of naira began, traders have been recording little or no sales hence their decision to stay at home until the situation improves.
He said: “Our major retailers and customers don’t come to the market anymore. Even those of us that come around only do so once in a while. We lament poor sales and then go back home. We are all cash-strapped.
“The market is empty. It is like a Sunday, a rest day, at Idumota Market because potential buyers cannot access their cash and therefore stay away.
Many traders have decided to stay at home rather than waste their money on transport fare to the market and end up not making sales.
The PoS agents that depend on us for cash supply are affected, too. The thrift collectors are not spared either. They have been jobless because we couldn’t meet up with our cash supply to them. The PoS agents are lamenting. They can’t get cash from us.”
Another resident, Mrs Folashade, a mother of four, said: “It has been very difficult for us to buy foodstuffs and cater for our domestic needs.
“I haven’t opened my shop for four days just because I couldn’t get naira notes from bank to run it.
“My husband is abroad. The only way he can cater for us is to send money, which has now become difficult to withdraw. The Federal Government has not done much for us in terms of social and economic stability. I urge the government to address the scarcity to save the informal sector from ruin.”
Badagry in war-like situation
Residents of Badagry, according to Ebenezer Kuponu, Chairman, Badagry Local Government CDC, are in a war-like situation as far as getting the new naira notes is concerned.
Kuponu said: “The cash scarcity is a big punishment for the people of Badagry. It is like we are in a war situation getting the new notes.
“People living in the community have to leave their homes for banks as early as 4.00 a.m. to queue at the ATM only to be back at 10.00 p.m. Some of them even spend the whole day at the banks queuing to withdraw from the ATM.
“And this has translated into mobile money agents charging between N150 and N200 to withdraw old N1,000 notes. There are no new notes in the entire Badagry. I was at a PoS shop moments ago where I was given old notes. Old naira notes are still in circulation in Badagry but new notes are scare. It is only those that visit banks to withdraw that get the new notes. With my age, my body cannot withstand such stress.
“Some people will be on queue till the next day. Unfortunately, those selling the new notes are getting them easily. Someone told me that he bought the new notes in Cotonou. Another person said he bought it at Seme border. Imagine, we are here suffering and unable to get the new naira notes but those at the border are trading with it. We are really suffering.”
EndSARS mood in Agbado Oke-Odo
Mr Ernest Kasunmu, Chairman, Agbado Oke-odo CDC, while lamenting the effects of the naira scarcity on residents in his community, described the policy as anti-masses.
He said: “There is problem with fuel supply and now cash scarcity. An average woman trader on the street trades with just N30,000 as her capital. She heeded the call by the CBN to deposit her old notes in the bank in exchange for new notes. She can neither access her money nor withdraw from it. The bank told her she couldn’t collect more than N5,000. How do you expect her to continue trading with meager N5,000? I don’t know why our banks and government are deceitful and fraudulent. They prefer to impoverish the already-poor masses rather than give them succour.
“As the CDC chairman, on a daily basis, I know the number of text messages I receive from members of the community. Some of them beg for money to feed while others seek financial assistance to take care of their health not knowing that I don’t have money either.
“These people have money in banks but they cannot access it because of the scarcity of cash. We are in a serious crisis situation. A hungry man is an angry man. With any slightest provocation, there will be crisis because people are hungry and angry. All Nigerians are affected. I get series of messages from residents expressing their anger and frustration.
“I have a farm I cannot go to because of fuel scarcity. While we were still contending with that, cash scarcity reared its head. My farm is located in Oyo State but I cannot afford to buy N300-per-liter fuel to fill my tank. This morning (Monday, February 6), my wife paid N300 to collect N2,000 from a PoS agent. This is hitting hard on us. The country is extremely bad and the people are suffering.
“The lives of everyday Nigerians have been negatively impacted by the paucity of funds. People are lamenting. They are suffering. Although it has not got to the stage that people will be crying of hunger on the streets, I can tell you that the people are on the edge.
“Everybody is affected. I have visited about four banks this morning (Monday, February 6) without getting any cash. The cash policy is very good but the timing and approach is very wrong. The Federal Government should listen to security reports and know what the common man is going through because very soon, there might be something like the EndSARS protest.”
‘PoS business suffering, too’
To many residents and traders in the state who have had to pay through their noses to get a fraction of their bank deposits, PoS operators are the greatest beneficiaries of the currency swap policy of the CBN.
Saturday Tribune spoke with PoS operators across the state, all of whom shared similar experiences and fears.
Contrary to the widely-held notion of mobile money agents cashing in heavily, Mrs Temitope Obadeyi, a PoS agent in Cele-Egbe, Ikotun, Lagos, said it is not all naira rain for mobile money agents in this season of cash scarcity.
According to her, almost half of the amount charged goes to traders and fuel attendants who supply them with the cash.
She said: “The business is slow with little or no returns on investment. Since morning, I have been able to transfer money and pay bills for a few people and that attracts little charges but people out there think we are raking in fortunes from the cash scarcity.
“We are unable to get funds from over bank counters or their ATMs. Our only source of getting money for our daily transaction is through the traders on the streets of Lagos, fuel attendants and bank tellers. And this comes with a percentage of the amount we charge on every transaction. Therefore, on every N100 collected on every N1,000 by a mobile agent, that trader somewhere has a cut. So, it is not about mobile money agents making all the cash; we feel the pain, too.”
Another PoS operator who identified himself as Alfa said the cash scarcity has forced him out of business.
“Since I couldn’t get hold of cash, I have been at home doing nothing. In fact, I have spent my capital feeding my wife and children. When the scarcity eases, I don’t know how I am going to raise fund to get back to business.”
Bank customers’ woes
While the authorities at the apex bank have directed deposit money banks (DMBs) to pay new notes over the counter subject to a maximum daily payout limit of N20,000, the customers alleged that the directive has been largely ignored.
An auto mechanic and a customer with one of the commercial banks located at Ori-Oke Bus Stop, Ikotun, Damilola Olarewaju, alleged that the bank paid only N5,000 to customers after spending hours on the queue.
Speaking to Saturday Tribune, Olarewaju said the N5,000 withdrawal was not even guaranteed and in most cases, customers were left frustrated.
He said: “I have been severely affected by the naira scarcity. My business has not been the same ever since this situation started. Usually, I used cash to buy tools and auto spare parts but this has not been possible for a while. As if that is not enough, the bank app and USSD channel have all been ineffective and frustrating.
“The PoS agents have also taken advantage of the cash scarcity to deal unfairly with their customers. I urge the Federal Government to do something about this as soon as possible to save our businesses from crashing.”
Another commercial bank customer, Arewa Omowunmi, said she spent several hours on the queue in the banking hall and when it was her turn, she recalled, “I was told that they have exhausted the new notes. This was around 12:08 p.m.
“The queue was so long that I had to endure but when I was about to be attended to, I was informed that there was no more money to pay to customers.”
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