Naira scarcity in Nigeria has become a night mere for Nigerians, we have not recovered from a failing economy neither have we been able to fathom the sudden reason to why the CBN decided to have a redesign of the naira (200, 500 and 1000) notes.
Naira scarcity has undoubtedly become a major challenge for many Nigerians in recent days. The scarcity of the country’s currency has made it very difficult for individuals and businesses to access the cash they need to meet their daily needs and pay for goods and services.
There are several factors which has contributed to the naira scarcity in Nigeria, but we just can’t place our hands on the actual problem.
We have seen video clips emerging on social media of the unnecessary long queues in banks and ATM stands.
We have also seen videos of people fighting in banks and ATM stands because they want to access their own money.
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Why Is There Naira Scarcity In Nigeria?
The Central Bank of Nigeria in October 2022 announced plans to redesign the 200, 500, and 1000 Naira notes.
The apex bank gave January 31 as the deadline for the swapping of the old notes. However, the inability of many Nigerians to access the newly redesigned notes forced the bank to extend the deadline to February 10.
Today, many Nigerians find it hard to access money as most banks they visit claim they do not have the new Naira notes to offer.
These are the main factors that have contributed to the current naira scarcity in Nigeria. Is it some how related to the forthcoming election in Nigeria or due to the nonchalant attitude of leaders to the needs of the citizens?
Well, we believe the government and Central Bank are working to address these issues and improve the availability of cash in the country.
Below are some general reasons to this national issues;
- Inflation: Inflation occurs when prices for goods and services increase over time, which reduces the purchasing power of the currency. In Nigeria, high inflation rates have made it difficult for individuals and businesses to access the cash they need, as they are not able to purchase as much with their money as they could before.
- Decreased oil revenues: Nigeria is heavily reliant on oil exports, which generate a significant portion of the country’s revenue. When global oil prices decline, this reduces the overall revenue for the country, making it harder for the government to meet the demand for cash.
- Currency devaluation: The Central Bank of Nigeria has devalued the naira several times in recent years, which has made it more difficult for people to access the cash they need. Devaluation means that the naira’s value has decreased compared to other currencies, making imports more expensive and reducing the amount of cash available in the economy.
- Increase in demand for foreign currency: There has been a growing demand for foreign currency in Nigeria, particularly for imports and international transactions. This has put further pressure on the naira’s availability, as individuals and businesses are seeking to obtain foreign currency instead of the naira.
- Limited foreign exchange reserves: Nigeria has limited foreign exchange reserves, which means that the Central Bank is not able to meet the increasing demand for foreign currency. This has resulted in a shortage of foreign currency, making it harder for individuals and businesses to access the cash they need for imports and international transactions.
How Do I Survive Naira Scarcity In Nigeria
These are some strategies that can help you to survive naira scarcity in Nigeria. We surely don’t know how long this will endure. The key is to be proactive and take steps to reduce expenses, increase your access to essential goods and services, and build a strong support network.
1. Live frugally
In a time of naira scarcity, it’s important to focus on your basic needs and minimize non-essential expenses. This could involve reducing your spending on luxury items, dining out less, or cutting back on other discretionary expenses. By living frugally, you can make the most of your limited resources and stretch your budget further.
2. Diversify your income
Having multiple sources of income can help to provide a cushion during tough economic times. Consider starting a side business, offering freelance services, or taking on part-time work to supplement your primary income. This can provide a safety net if one source of income decreases or becomes unavailable.
3. Invest in tangible assets
Tangible assets, such as real estate or precious metals, are likely to retain their value even if the currency continues to lose value. By investing in these assets, you can protect your wealth and ensure that you have access to the resources you need in the future.
4. Build a support network
Connecting with others in your community, such as friends, family, or community organizations, can provide a safety net during tough economic times. Pooling resources and providing support to one another can help you to reduce expenses, increase your access to essential goods and services, and improve your overall financial stability.
5. Take advantage of bartering
Bartering goods and services with others is a way to obtain what you need without relying on traditional currency. This can be especially helpful if you have skills or resources that others are seeking. By bartering, you can conserve your cash and still access the goods and services you need.
6. Use alternative currencies
Alternative currencies, such as barter networks or local currencies, can be used as a way to access goods and services without relying on traditional currency. By using alternative currencies, you can conserve your cash and still obtain the things you need.
7. Manage debt wisely
In a time of naira scarcity, it’s important to minimize debt as much as possible. This means paying down existing debt as quickly as possible, and avoiding taking on new debt if possible. By reducing debt, you can conserve your cash and improve your overall financial stability.
8. Seek out government support
Look into government programs and initiatives that can provide financial assistance during tough economic times.
9. Reduce expenses
Find ways to reduce your expenses, such as cutting back on utilities, consolidating debt, or finding ways to save on transportation costs.
10. Consider relocation abroad
If necessary, consider relocating abroad at least to a region where the cost of living is lower and the economic climate is more favorable for you because this scarcity might persist until after election.
11. Grow Your Own Food
Growing your own food can be a great way to reduce your dependence on purchased goods and stretch your budget.
By planting a small garden, you can grow fresh fruits and vegetables, reducing your grocery expenses and providing a source of nutritious food. Gardening can also be a relaxing and fulfilling hobby.
12. Use Technology to Your Advantage
Technology can be a powerful tool for managing finances during naira scarcity. By making use of digital payment systems and mobile banking apps, you can keep track of your spending, pay bills, and transfer money without relying on cash.
This can be especially helpful for those who are unable to visit a bank in person or who need to access their funds remotely.
13. Build an Emergency Fund
Having an emergency fund can provide a cushion in case of unexpected expenses or lost income. Consider setting aside a small amount of money each month into a savings account, so you’ll have funds available in case of an emergency.
Having an emergency fund can help reduce the financial stress associated with naira scarcity and provide peace of mind.
14. Invest in Education
Investing in your education and acquiring new skills can increase your earning potential and make you more valuable in the job market. By developing new skills, you may be able to find new job opportunities or negotiate a higher salary in your current role.
This can help you build a more stable financial future and better withstand economic challenges.
15. Support Local Businesses
Supporting local small businesses and local suppliers can help build a stronger local economy and create jobs. By shopping at local businesses, you’re supporting your community and keeping money circulating within your local economy, helping to boost economic growth and stability.
Additionally, local businesses are often more in tune with the needs of their communities and may be better equipped to weather economic downturns.
By taking these steps, you can conserve cash and ensure you have access to the resources you need to thrive. Additionally, by supporting one another and working together, we can help to mitigate the impact of naira scarcity and build a stronger, more resilient economy for the future.
ATMs vandalized as protests over scarcity of naira spread to Ogun
Protesters on Tuesday vandalized automated teller machines in a bank premises in Abeokuta as demonstrations over the scarcity of the new naira notes and Premium Motor Spirit, commonly called petrol, reached Ogun State.
The redesigned three highest denominations of the new banknotes entered into circulation on 15 December, and were scheduled to have replaced the old designs by 31 January as legal tender.
The change, according to central bank governor Godwin Emefiele was introduced to reduce cash in circulation, and tackle currency counterfeiting and terrorism financing among other vices in the country.
However, Mr Emefiele later announced the extension of the deadline by 10 days, saying the extension had been approved by President Muhammadu Buhari.
Protests had broken out in parts of Ibadan in Oyo State last week over scarcity of the new notes, leading to an attack on the office of the governor.
Kaduna, Kogi, Zamfara state governments drag FG to Supreme court over Naira scarcity
The governments of Kaduna, Kogi, and Zamfara states have dragged the Federal government before the Supreme Court, seeking a restraining order to stop the full implementation of the policy surrounding the newly redesigned Naira notes.
What do you have to say about the current naira scarcity? kindly drop a comment below.
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