Abuja market traders groan as naira scarcity persists

Some traders selling food items and perishable agricultural produce in the Nigerian capital have lamented the losses they have incurred due to the shortage of naira notes in the country.

In the market survey conducted by Center for Journalism Innovation and Development (CJID), traders explained how they have recorded losses in business in recent times as customers have had difficulty accessing cash to buy food.

Although some merchants use electronic transfers in some markets, many complain of network challenges during online transactions, while others do not have bank accounts.

The most affected category of traders, the survey shows, are those who sell perishable foods such as tomatoes, vegetables, peppers, fruits, etc.

Several interviews with traders in the market showed that in the past few weeks, many had to reduce the price of their goods in order to reduce losses due to poor patronage.

“I don’t have many sales at this time; many customers do not come to the market. I have to reduce the price of my fruits to sell them immediately, otherwise many of them will be damaged,” said Usman Mohammed, a fruit seller in Kubwa market.

Background

In October 2022, the Governor of the Central Bank of Nigeria, Godwin Emefiele, announced the introduction of the new N200, N500 and N1000 notes.

Mr. Emefiele said the decision would address cases of kidnapping, terrorism and other financial crimes.

However, since the policy came into force, the shortage of old and new naira has affected many businesses in the country.

The situation adds to the problems faced by traders in the market, especially due to the challenge of inadequate storage facilities leading to post-harvest losses.

Salusi Sanni, a trader at Arab market, Abuja, said he loses about N3,000 to N4,000 daily due to poor sales and spoiled agricultural produce, probably because of the cash crunch.

“During this time, my goods were destroyed every day because I did not sell much and people did not buy. Like these tomatoes, before tomorrow morning, most of them will be spoiled. Look at the floor, which was spoiled yesterday, this morning I did not separate it,” he said.

“There are like 2,000, 3,000 to 4,000 broken items per day. Only onions last longer for us here.

“The problem now is too many, someone will come and buy tomatoes and Tatashi (peppers) without cash to pay, the person will try to transfer and even if I collect the transfer; When I go to the market to ask for new goods, some wholesalers will not take the transfer from me,” he said.

Another trader, Mary Ann, who sells yams and bananas in the same market, explained that the situation affected her daily sales.

“I haven’t sold any tubers since morning. “I usually sell 15 to 20 yam tubers a day, but until now (5:13 pm) no one has sold,” said Mrs. Ann.

“If I want to explain how it affects me, I will cry. You see this car, the owner of the car took me back from where I bought yams now, who saved him now the money, he said he does not collect transfers, so now, I find money to give. He said if we collect the cash transfer now and they will charge N1500 for N5000, will we gain? So the man said he will not collect it. It has been more than an hour, now we are going to the mosque to pray.”

But Samsu Abu, another trader dealing in tomatoes, okra, and onions, said the situation did not affect him as he had more than one bank account for cash transfers from customers.

“The situation has affected many people, but I am not affected because I usually collect cash transfers,” he said.

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“I opened another bank account last week due to the situation so that there would be no network challenges if it was in the previous bank during the transaction.”

In a national broadcast on Thursday, President Muhammadu Buhari directed the central bank to ensure the circulation of the old 200 naira note to facilitate trade and business transactions.

On his part, the presidential candidate of the Labor Party, Peter Obi, insisted that the naira redesign policy has long-term economic and social benefits, although the process has some challenges.

The Director of the Abuja School of Social and Political Thought, Sam Amadi, called on Nigerians to show tolerance, hoping the situation would improve after the general elections.

“It is difficult to reduce the suffering until the election is over and the fundamental reasons for the distortion in the implementation of the policy are removed. The best thing that the people can do is to settle and hope after the election more cash from official sources,” said Mr. Amadi.