Currency: Scarcity Of Low Denomination Hits PH

Director-General, National Power Training Institute of Nigeria (naptin), Mr Reuben Okeke (left), and the representative of the Minister of Power, Mrs Grace Papka, at the induction of naptin’s graduate skills development trainees in Abuja last Thursday.
Photo: NAN

Scarcity of low denomination of the naira currency has created financial crisis in Port Harcourt, the Rivers State capital as transporters and traders who are seriously affected by the crisis are calling on the Central bank of Nigeria (CBN) to make available lower denominations to ease commerce, according to investigations by The Tide.
A petty trader, Betty Eche, told The Tide in Port Harcourt her experience. She said, “what you see everywhere today is one thousand and five hundred Naira note. No small money again to give change or buy small things.”
According to her, scarcity of lower denomination has led to a situation where everybody is looking for change for whatever you sell or buy, adding that this has led to quarrels and even fights in some cases, and lamented that the ugly situation has resulted in low patronage of customers.
Another respondent, John Ebi, a bus driver said the low denomination crisis was affecting transport business as the bus conductors demand for N50.00 or N100.00 which are hardly available.
He said; “Before a bus conductor welcomes any commuter, he must first advise you to hold your ‘change’ or disembark”, explaining that the situation has resulted in more suffering for the people.
“You can see a lot of people trekking. It’s not that they don’t have money to pay but because they don’t have smaller denominations like N50, N100 or even N200”, he said.
A team of Central bank of Nigeria (CBN) officials who visited Rivers State recently on consumer protection awareness campaign had linked the scarcity of low denominations to the ATM machines.
Leader of the team and Head, Consumer Education and Protection Department, Hajiya Khadijah Kasim said the same volume of Naira notes of either denominations feeds the machines and that banks consider it easier to stock the machines with more money value.
According to her, the banks now consider feeding their machines with N1000 or N500 notes than lower denominations.
Our reporter who monitored the development said fights amongst commuters and petty traders and their customers has become common.
He said unless CBN checks the situation, the problem may escalate as traders and customers increase their transaction for the Christmas and New Year season.