The Pains of Naira Scarcity: Central Bank’s Lacklustre Attitude Frustrates Port Harcourt Residents
By; Al Humphrey Onyanabo
The residents of Port Harcourt, the capital of Rivers State in Nigeria, are currently facing the dire consequences of a severe scarcity of naira notes. With Nigeria being a cash-dependent economy, the cashless policy implemented by the government has failed to alleviate the lingering issue, leaving citizens questioning the lacklustre attitude of the Central Bank of Nigeria (CBN) towards this pressing matter.
The Struggle for Cash
In a country where most transactions are conducted using physical currency, the scarcity of naira notes has brought about numerous challenges for residents of Port Harcourt. Local markets, transportation services, and small businesses have all been severely affected, as individuals struggle to access the cash required to meet their daily needs.
Long queues at banks and Automated Teller Machines (ATMs) have become a normal sight, exacerbated by the scarcity of naira notes. Citizens have to spend hours waiting to withdraw cash, only to receive minimal amounts that barely cater to their immediate needs. This situation has further exacerbated the economic hardships faced by people already grappling with rising costs of living, inflation, and limited job opportunities.
The Cashless Policy’s Failure
The implementation of the cashless policy by the Nigerian government was intended to reduce the reliance on physical cash and promote digital transactions. However, this policy has not proven effective, particularly in areas like Port Harcourt where cash payments remain prevalent.
Despite the push towards digital transactions, many citizens still prefer cash as a means of payment due to issues such as a lack of trust in the banking system and limited access to electronic payment infrastructure. The scarcity of naira notes has further compounded these challenges, rendering the cashless policy ineffective in practice.
Central Bank’s Lacklustre Attitude
One cannot overlook the frustration amongst residents of Port Harcourt towards the seemingly lacklustre attitude displayed by the Central Bank of Nigeria. Despite numerous complaints and appeals from affected citizens and businesses, the central bank has not shown a proactive approach to resolving this issue.
While the CBN claims to have made efforts to address the scarcity, the situation on the ground tells a different story. The scarcity persists, with only minor improvements in sight. This lack of urgency has left residents feeling neglected and disregarded, as they struggle to conduct their day-to-day financial transactions.
Way Forward
To alleviate the pains caused by the scarcity of naira notes, urgent and tangible action must be taken. The Central Bank of Nigeria should prioritize addressing this issue promptly. Measures such as collaborating with commercial banks to introduce naira note circulation programs and ensuring efficient cash transportation to areas facing scarcity should be implemented without delay.
Additionally, the government should revisit the cashless policy and identify areas where improvements can be made to promote digital payment systems effectively. Enhancing accessibility to electronic payment infrastructure, raising awareness and trust in electronic payment systems, and providing incentives for digital transactions can all contribute to reducing the reliance on physical cash.