There is a not-too-new trend silently rocking the economic and making most grassroots money spenders’ panic due to its time wastage. Petty Traders, Shop Owners, Food Sellers, Recharge Cards Sellers, Commercial Bus Operators and even Traffic Hawkers frown these days at prospective customers tendering N1, 000 notes for goods purchase; combine with the gradually becoming famous phrase “I don’t have change!”
The trend became obvious to many particularly in Lagos towards the last quarter of 2013 as many petty traders and their customers laments the increasing insufficient circulation of N200, N100 and sometime N50 denominations respectively in the micro business environment.
Some Petty Traders and a section of Small and Medium Business Owners in Yaba, Lagos Island and Victoria Island sais respectively that at the moment, N1000 note seems to be the only denomination sufficiently available for business transactions in their daily experiences particularly towards the last lap of 2013.
According to them, the excessive tendering of N1000 note was also straining businesses at the lower cadets of the economic as they had had to send their attendants (sales persons) whose primary purpose is to attend to customers to go in search of lower denomination in order to satisfy customers who were waiting to have their changes after service rendered and payment made.
Mrs. Anthonia Alex is a petty trader who sells food stuffs In Victoria Island. She said her experiences last year was undeserving and that the authorities must do something to have lower denomination currency in circulation. She added that many customers that patronize her towards the end of 2013 came mainly with N1000 notes thereby making the task of finding balances to give back herculean and worthless.
Miss Chiyenre is another food seller on the outskirt of Lagos Island. She lamented that the situation has grown worst rather than alleviating. She said the only option left to her now if she must remedy the challenge in the interest of her business was to source for lower denominations (N100 and N200) in banks.
Some public observers blamed the situation on the Banking Industry policy of not having lower denomination currency loaded in ATMs. “Almost all the ATM Tellers pay with N1,000 notes. What do you expect when most ATMs on the country hardly vomit N500?” Asked Tosin Yisau, an Economist.
She said though, the ideal of having N1,000 notes mainly in the ATM, could be to have large sum readily available in the interest of customers, policy should also be formulated in order to have specific ATMs where users could dispense lower denominations currency.
“I think that may address the issue of no change. Many people including illiterates now know how to use the ATM card. So, economically speaking, if many are now using ATM, and the ATM is only producing N1, 000 notes, there are bound to be more N1, 000 notes than any denomination. The situation is also contributing to inflation since customers would either be compel to compromise and part with his/her change or purchase at a price higher than normal price. So, we need ATM machines for lower denomination if we must match the deficit. Mind you, some of these low spenders would happily go to the ATM and withdraw just N200. Our monetary policy should be all encompassing”, she advised.
NATHANIEL AKHIGBE
