It’s no secret that currently there’s no cash in Nigeria, at least not the physical one.
Have you had trouble accessing cash or making digital payments in Nigeria lately? If you’re like most Nigerians, the answer is probably yes.
In Lagos, the economic capital of the country, you can see long lines at banks as people try to get cash for their daily needs.
Unfortunately, the fees for withdrawing cash from PoS merchants have become exorbitant, often reaching up to 10% of the amount being withdrawn.
This is a far cry from the reasonable fees people used to pay.
So, the Central Bank of Nigeria (CBN) decided to redesign the naira, which was meant to align with global best practices and eliminate hoarded cash.
However, the transition has been difficult, as the notice period for the change from the old notes to the new notes was only three months, which is less than the typical notice period of six months.
As the January 31 deadline approached, many businesses became wary of accepting the old notes, and the new notes were difficult to come by.
A parallel market even emerged, with PoS agents charging higher fees for access to the new notes.
Going cashless has been suggested, but for most Nigerians, it remains a luxury. The country’s poor economic state and insufficient infrastructure make it difficult, and frequent downtimes in banks and PoS networks make it even harder. So, while a cashless economy sounds great, it’s not that simple.