Nigeria’s economic hardships were exacerbated for traders and farmers during the December festive period when Naira scarcity hit the country for the second time in 2023.
At the Idi-Oro market in the Mushin area of Lagos, a video by Farmvilla Resources Centre has surfaced on social media platforms showing bunches of plantain rotting on the floor, as traders lament poor sales.
At a time when the country is battling a food crisis, the over-ripped plantain became unfit for consumption, leading to a huge waste of food and income.
The scarcity of cash affected millions of Nigerians, who faced difficulties in meeting their daily needs and celebrating the Yuletide.
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Between 2020 and 2022, an average of 21.3 percent of Nigerians experienced hunger, according to Statista, a global data and business intelligence platform.
Shedding light on the report, Statista said people in severe food insecurity would for entire days without food, due to lack of money or other resources.
“The prevalence of severe food insecurity among Nigeria’s population has been increasing, as the demand for food is rising together with a very fast-growing population”, the report noted.
The video of the wasted plantains has sparked outrage and sympathy among Nigerians, who have expressed their anger and disappointment at the government and the CBN for failing to address the cash crunch and its consequences.
Nigeria’s Daily Struggle With Cash Scarcity
The impact of the cash crunch was experienced most by small business owners. This is because businesses depend largely on cash transactions. The high cost of living and the low purchasing power of consumers reduced their sales and profits, making it harder for them to meet their operational expenses and pay their workers.
Meanwhile, in attempt to ameliorate the cash crunch, the Central Bank of Nigeria (CBN) suspended the processing fees on cash deposits above N500,000 for individuals and N3 million for corporates, from December 2023 to April 2024. This measure was intended to encourage Nigerians to deposit their cash without incurring additional charges, and to improve the liquidity in the banking system.
However, some Nigerians expressed scepticism about the effectiveness of the CBN’s intervention. They argued that the suspension of fees was not enough to address the root causes of the cash shortage. They called for more comprehensive reforms in the financial sector, such as improving the efficiency and security of e-payment channels, reducing the inflation rate, and stimulating the economic growth
The cash crunch, which has been attributed to the ill-conceived and ill-implemented currency redesign policy of the previous administration, has caused severe hardship and frustration for many Nigerians.
The situation has also affected the agricultural sector, as farmers and traders face challenges in selling their produce and making profits. The video of the wasted plantains is a stark example of how the cash crunch has disrupted the food supply chain and threatened food security in the country.
