Cash Crisis Leads Nigerians in The Villages to Resort to Trade by Barter
- Nigerians in the rural areas have begun trade by barter to circumvent the current cash crisis in Nigeria
- A report said some villages in far away north and eastern parts of the country are trading goods for cash
- Residents lamented that they were lured into depositing their cash in the banks with the hopes the new notes would be easily accessible
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As the cash crunch bites hard and the scarcity of cash persists, Nigerians in remote communities have returned to ancient barter trade.
Petty traders of perishable products have opened ledgers for their customers who cannot pay for their products in cash, hoping they would exchange something in return to ease the current cash crunch.
Source: Getty Images
Residents feel trapped after depositing old notes
Since the Central Bank of Nigeria introduced the redesigned N200, N500 and N1,000 notes, Nigerians have been going through excruciating times to access cash, leading some governors in the country to sue the Nigerian government.
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CBN had fixed February 10, 2023, as the deadline to cease the circulation of old naira notes in the country as legal tender.
Daily Trust reports that villagers in Buhari and Damasak towns in Yusufari and Mobbar local government areas of Yobe and Borno states have resorted to trade by barter, an ancient practice of exchanging goods.
According to the report, the villages are far into the desert, bordering the Diffa area in the Niger Republic.
Residents of the towns said they benefit from the telecoms and health services of the neighbouring country.
A resident said that a week before the end of the naira swap deadline, many had enough cash reserves at home, which they deposited in the banks via proxies as the CBN deadline approached to avoid losing them.
Villagers report their cash are trapped in the banks
The report said that the account owners promised to withdraw the new notes to continue with their businesses.
Ijeoma Aluo, a resident in Awara in Ohaji Local Government Area of Imo State, told Legit.ng that accessing cash in the villages is an arduous task, leading them to trade foodstuff for basic needs.
She said the villagers, mostly farmers, use their commodities to trade by barter.
“For instance, we use a basin of garri in exchange for fish and vegetables.
She said the villagers are tired because they can only access cash if they take their wares to Owerri.
Naira Scarcity: CBN insists banks get new naira notes daily despite shut down of some branches
Legit.ng reported that the Central Bank of Nigeria (CBN) has said that banks in Nigeria still get new naira notes from it daily, even as some banks shut down operations nationwide.
CBN’s director of Consumer Protection, Rashida Monguno, made this known in Offa, Kwara State on Thursday, February 9, 2023.
Daily Trust reports that Monguno attributed the scarcity of the new notes to sabotage by the commercial banks in Nigeria.
Source: Legit.ng
