Naira scarcity bites: Nigerians reject old notes

Nigeria is currently facing a challenging economic situation as the scarcity of the Naira continues to bite hard. Some Nigerians have raised complaints about the rejection of old Naira notes by commercial banks, filling stations, and shopping centers. This rejection has caused inconvenience and frustration for many individuals who are now struggling to transact with the outdated currency. As the Supreme Court resumes the hearing on the interim injunction over the Naira swap deadline, the uncertainty surrounding the use of old notes persists. Despite the court's directive to accept the old notes until a specified time, the Central Bank of Nigeria (CBN) has not issued a circular authorizing the collection of these notes. Consequently, banks and other service providers have refrained from accepting the old currency, citing the lack of regulatory approval. This refusal has further exacerbated the situation, with reports of courts also rejecting old Naira notes. Until the CBN clarifies its position on the matter, the old notes remain invalid in the eyes of many institutions. The reliance on alternative channels, such as ATMs, POS systems, and online banking, has proven to be a challenge for many Nigerians. The transition to digital platforms has faced significant hurdles due to the inadequate infrastructure and capacity to support increased usage. Numerous cases of failed transactions and service disruptions have hampered the effectiveness of these alternative channels. Additionally, the high level of cash dependence, particularly in rural areas, has further complicated the situation, leaving many individuals with limited options for conducting financial transactions. The ongoing cash crunch and fuel scarcity have added to the economic uncertainty in Nigeria. The current challenges in the economy, coupled with the impending elections, have created a climate of instability that may deter foreign investors. The scarcity of Naira and the disruptions to business operations have raised concerns about the country's economic outlook. The combination of cash shortages, fuel queues, and political uncertainties has heightened the level of risk for investors, potentially leading to a slowdown in economic activities. The impact of these factors on key economic indicators, such as GDP growth and inflation, remains a point of concern. The government's introduction of a carbon tax policy as part of the Energy Transition Plan has been met with mixed reactions. While the initiative aims to promote environmental sustainability and generate additional revenue through emissions taxation, there are concerns about its potential impact on businesses. The carbon tax policy, along with the tax on greenhouse gas-intensive goods and services, poses challenges for companies operating in a challenging economic environment. The tax burden imposed by these policies could lead to increased operational costs and potentially contribute to unemployment. Balancing the need for environmental compliance with the need to support economic growth and job creation will be a critical task for policymakers. In a country already burdened with multiple taxes and levies, the introduction of additional taxation measures requires careful consideration to mitigate adverse effects on businesses and the economy at large.