Katsina grain sellers rue losses as scarcity of redesigned naira notes continues

As Nigerians continue to struggle to get hold of the newly designed naira notes, the informal sector of the economy is suffering from the policy. Many businesses experience low turnover and are forced to make painful concessions before they can sell.

A PREMIUM TIMES reporter spoke to wheat traders in Katsina State and said the shortage of naira notes has caused serious problems in their businesses and they are now forced to cut prices to make sales.

In some weekly markets this journalist found the prices for those paying in cash different from those paying via bank transfer.

Last October, the Central Bank of Nigeria (CBN) has announced the redesign of the N1,000, N500 and N200 naira notes to combat terrorism and revive the economy.

The deadline for the use of old notes was January 31 after the shortage of new notes sparked outrage in some countries, the CBN extended the deadline to February 10, 2023. The Supreme Court then ordered the CBN to postpone the date of February 10. deadline.

different prices

“It is because of the problem that we have to do before we get the money after transferring it to them, so we increased the price by at least, N1,500,” the market leader at Sheme Market in Faskari Local Government area, Mustapha. Ibrahim told PREMIUM TIMES.

“But in general, prices are generally down and because people don’t have money and we have to sell and eat,” he said.

A soybean trader, Abdurrazaq Soli, who does business in weekly markets including Jikamshi, Danja and Bakori said he has no choice but to cut prices because he needs cash due to the nature of his business and customers and workers.

He said a bag (100kg) of soybeans sold for N33,000 before the deadline is now sold for N21,000 in cash and N25,000 through transfer.

“Now we have no choice but to reduce the price because we need money to complete some of the workers who fill the grain. Most of the workers do not have accounts, so how do you pay? We accept cash and are desperate to reduce the price just to sell and get money. Not everyone accepts transfers bank, so when they do, the price goes up,” he said.

Mr. Kafin Soli said the situation is affecting business because most of the farmers will lose money.

“The prices of everything are high. We buy fertilisers, seeds and insecticides at high prices. We pay workers, we rent equipment to work on our farm, so if you analyze everything, you will see that we are losing money because we don’t think of making more the money that is invested in the business. to make a profit,” Mr. Soli added.

At the Sheme weekly market, those paying in cash can buy a bag of soybeans for N22,000 (cash). Those who want to pay through bank transfer are charged N24,000 for the bag. 100kg of guinea maize is sold at N13,000 for those paying in cash and N14,500 for those paying through electronic transfer. Maize is sold at N18,000 to cash customers and N19,500 to transfer payers.

At Faskari market, Ibrahim Bawa, a trader told PREMIUM TIMES that on Tuesday, the price dropped, which he said came with mixed feelings.

He said that while those buying grain and other commodities may be happy as prices have fallen, traders and farmers will bear the brunt as traders who sell are at a loss.

“The traders have no choice, although some are unwilling to sell at full price and instead take the grain home because the loss will be too much,” he said.