For months now, a silent financial revolution has been unfolding in the Nigerian market.
The quiet and disturbing disappearance of N5, N10, and N20 notes has become a source of economic concern for many Nigerians.
WITHIN NIGERIA, findings show this has been going on for more than a year.
Our reporter, who visited shops in Enugu State, revealed that the situation has led some shop owners to hike prices.
It was also gathered that even the N50 note is currently fighting for survival.
At Abakpa Nike, Enugu, a provision shop owner told our reporter that for months now, he has not seen any customer coming with either N5, N10, or N20 to buy anything.
According to the shop owner, who gave his name as Joseph, “It is long I saw anybody with these denominations. Let me be frank with you, for six months.”
Asked if there is any item he sells N5, N10 or N20, Mr Joseph answered in the negative, saying ” even the N50 note is fighting for survival. Apart from sachet water and Tom Tom, there is nothing one can buy with N50 in my shop and any other shop.”
Explaining further he said that ” the problem with N5, N10 and N20 is that you cannot use any of them to buy anything. So, for that you have to wait till they reach up to at least N50; you can use them. But, before they reach up to that, the customer might have lost one of them thereby reducing the chances of using them again.”
At Nsukka, Enugu state, a shop owner at Ogige Main market told our reporter that the situation is neither helping the seller nor the buyer.
Food condiments seller, Regina Agu told WITHIN NIGERIA that ” it has redesigned the way we give out prices of items. For instance, an item that is supposed to be sold at N170 is now N200 because you don’t have N30 you will give the customer as his or her balance. The same thing applies to us when we go to buy too.”
Also from Onitsha International market to Ose market, Onitsha, the N5, N10, and N20 notes have become effectively “extinct”.
The transportation sector is also not left in this “delisting” of N5, N10 and N20 notes.
From Head Bridge, Onitsha to Mkpor Market, which is supposed to be in the neighbourhood of N470, drivers collect N500 flat because nobody has N30 to give as a balance.
From market to local bus stops, these notes are being “de-listed” by traders and transporters. Even the N50 note is fighting for survival, barely covering the cost of a sachet of water. Our economy’s “starting line” has moved upward.
However, Jude Onyemaechi, an economist at the University of Nigeria, Nsukka, told our reporter that the situation is not a good omen.
“For our lower denominations to go extinct means that the economy is shrinking. It also goes to show that these denominations are daily losing their value, thereby resulting in inflation in the economy.”
According to Mr Onyemaechi, “The effects are far more than ordinary fizzling out of these notes. It is the state of the economy that is under pressure and stress.”
