Nigerians lament as scarcity of N100 notes impacts businesses

The scarcity of N100 notes in Nigeria is causing headaches for small business owners and consumers, disrupting daily transactions and fuelling frustration across the country.

Traders, transport operators, and point-of-sale (POS) agents across Nigeria told PREMIUM TIMES how the dwindling availability of the lower denomination challenges their ability to operate smoothly.

Many respondents accused commercial banks of hoarding the scarce currency, while others speculate that the Central Bank of Nigeria (CBN) has slowed down the printing of these notes.

The CBN declined to speak on the matter when approached.

With no clarity on the cause, the shortage has left many questioning the country’s cash supply system.

Some Nigerians said it may be attributed to inflation, which raised the demand for smaller denominations in everyday transactions.

Nigeria’s inflation rate hit 32.7 per cent in September, raising the cost of goods and services, which many consumers now pay for in cash.

In places like ACO housing estate, an Abuja suburb along Airport Road, the scarcity is particularly challenging, given most of the small traders’ greater reliance on cash transactions over digital payments.

Sayyada, a young mother of five who sells peppers and tomatoes near the police station before the market complex, expressed her frustration over the scarcity of N100 notes, stating that there are days when she goes without holding a single one.

While her sales don’t typically involve N100 notes, there are instances when customers make purchases that require giving change. This has resulted in lost income, and on occasion, she has had to offer customers extra peppers instead of change to accommodate their needs.

For vendors like Agnes James, who sells raw foodstuff in the market complex, the scarcity of N100 notes has forced her to get creative with money management.

She mentioned that on occasions when she doesn’t have the required balance, she has resorted to adding sweets and biscuits to her transactions to make up for the deficit.

“I have lost a lot of my gain to this scarcity and you know there is not so much gain in this business. There are times in a day you may tell 10 customers to go with the change, some will come back and give you when they get and some won’t come back. How do I recover from that if I continue that way?” she said.

Olaolu Adeniyi, a civil servant who relies on public transport, shared that many bike riders and taxi drivers have started to charge extra when passengers don’t have the exact fare. For instance, if the fare is N400 and a passenger only has N500, the drivers often insist on taking the higher amount, leaving the passenger with little choice but to comply.

Motorcyclists (Okada riders)

“I am an usher in my church, so sometimes, I get lucky and change enough from the offering, but these days, you won’t even see N100 notes like that. It is tiring!” he said.

CBN

Last week, the House of Representatives urged the Central Bank of Nigeria to begin the gradual withdrawal of old naira notes and ensure the availability of new notes for Nigerians.

This call generated concerns among citizens, stemming from the frustrations experienced during the cash crunch that occurred when the CBN introduced new N200, N500, and N1,000 notes in October 2022, with circulation starting in December of the same year.

However, the CBN quickly dismissed the calls by the lawmakers.

Aliyu Ilias, an economist, raised concerns about the CBN’s handling of the currency situation, suggesting that the CBN has been withdrawing money from circulation without adequately replacing it with new notes, which is problematic.

Mr Ilias specifically highlighted the N100 note as crucial for everyday transactions, emphasizing that the CBN needs to issue more of these notes quickly.

He is also worried that the inadequacy of new currency, especially if the use of old notes is phased out, could lead to fears of scarcity.

CBN Headquarters in Abuja

“People will start having the fear of scarcity, which brings issues of hoarding, and when people start to hoard the money, as a matter of urgency, there should be serious orientation about it, and there should be much more availability of the N100 note by the CBN,” he said.

According to the CBN’s Money and Credit Statistics, currency outside banks rose by 66.2 per cent in September 2024, reaching N4.02 trillion, up from N2.42 trillion in September 2023. This marks a notable increase of N1.60 trillion in currency circulating outside banks over the past year.

Inflation

On his part, Paul Alaje, the Chief Economist at SPM Professionals, attributed the scarcity to inflationary pressures.

“We don’t hold money because we want to hold it, we hold it because we want to use it as a medium of exchange. When those who are supposed to know better do not understand the importance of stability of this currency, then the entire population will suffer,” he said.

He said the problem is not peculiar to cities, he said people in rural areas also experience a shortage of lower denominations because inflation has eroded the naira’s value.

He warns that if Nigeria faces hyperinflation, even the N200 note could become as rare as the N100 note is now.

“Again, more people are now trying to optimise online transfer channels but that does not mean for a simple transaction of buying something across the counter, we can not see this currency. The truth is more of this currency will be scarce. Electronic means will replace them, not necessarily because of advancement in technology but because of loss of value of this currency,” he said.

Temitope Kayode, a cashier at a Nigerian bank, noted that many customers do not value being paid in N100 notes, and those who specifically request them are not significant.

“Some customers will fight you if you pay them in N100 bundle, so we don’t bother at all,” he said.

A nationwide phenomenon

For some vendors, the scarcity isn’t only impacting their business operations but also their livelihood. Mary Akinbobola, a widowed mother of six in Lagos who hawks sachet water and drinks, says that the shortage has drastically affected her earnings.

“The scarcity started two months ago, and it’s been a struggle. We either lose customers or they generously ask us to forgo the change.”

Mariam Ahmed, a snack seller on Kosoko Street, Berger, noted that even bike men, who are her primary customers, patronise her only to get lower denominations.

“Most times, when I get patronage, they’re also looking for N100 notes to get change,” Ms Ahmed said.

POS operators Chinazam John and Emmanuel Chike, positioned beside each other in Berger, Lagos, complained about the scarcity.

“When customers withdraw N10,000, and we need to deduct N200 charges, it’s challenging to find N100 notes to make up the N9,800 balance,” Ms John explained.

Nasir Yusuf, a pepper seller who spoke in the Hausa language, shared similar experiences. Mr Yusuf said the scarcity slows down his small business on some days, making it difficult to operate efficiently.

Commercial driver Segun Ajibade, who operates in Ojodu Berger, lamented the situation.

“We’re the worst hit. For weeks, we’ve been facing this challenge. It’s frustrating when customers need change, and we can’t provide it. We either turn them away before the board or scramble to find change elsewhere.

“Sometimes, we just buy random things we don’t need just to get change,” Mr Ajibade told PREMIUM TIMES.

Mr Ajibade observed that while the scarcity of N100 notes has persisted for weeks, it’s puzzling to see people spraying fresh N100 notes at parties. “It makes you wonder where they’re getting them from,” he said.

In Uyo, Akwa Ibom, Philomena Adinya, a chemical paint vendor along Ikot Ekpene Road, says the shortage of N100 notes has become so severe that customers are regularly forced to search for change.

“It’s been months now, you hardly see N100 notes in the market and retail shops,” she said.

Ms Adinya has no idea why the note is scarce in circulation but said the only prevalent naira notes at the moment are N200.

“Only the Central Bank of Nigeria can explain why they are not printing the notes again,” she said when asked why the notes are limited in circulation.

Iniabasi Akpan, who sells groceries at Itam market, shared a similar experience.

Mr Akpan said even his customers are also complaining about the situation. He blamed it on commercial banks.

“We don’t know why banks have refused to circulate the one hundred notes,” he said, suggesting that commercial banks are hoarding the notes.

He told PREMIUM TIMES that although he doesn’t buy products from wholesalers with cash, he is always frustrated when he would be looking for it to balance her customers for purchases.

A Point of Sale machine

He lamented that the situation was getting worse and called on the CBN to print more of the lower denomination.

Glory Akpan, a POS operator, said she is always frustrated the moment she exhausts the ones she got from the church on Sundays.

“The notes are very scarce. I exhausted the few I got from the church on Wednesday. For now, I accommodate any changes that require N100 in withdrawals if the customer does not have the physical note to pay.

“But for other denominations, particularly N1000 and N200 notes, I have plenty of them, ” she said.

A commercial tricycle operator, Ubong Okon, said he always asks passengers if they have N100 balance to avoid problems.

“Like today, since this morning the prevalent naira notes are N1000 and N200. Even N500 is also scarce but the rate cannot be compared to N100 notes.

“I would ask passengers boarding my Tricycle if they have N100 balance before they enter because I don’t want to have a problem with anybody.”

Mr Okon said the notes are extremely scarce even at petrol stations. It is N200 and N1000 notes that are prevalent, he said.

Northern Nigeria

In Hadejia, Jigawa State’s commercial nerve centre, the situation is equally dire.

Adamu Umaru, a tea vendor said he had rejected several of the N100 notes because they were mutilated while he laments that he has repeatedly turned away customers because of the unavailability of the N100 note.

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“Any business transaction that will make me look for ₦100 change, I would rather lose the customer than scout for change because I cannot get it.

“It’s affecting my business. After all, it’s the common denomination because people here are not like those in Abuja, where they are dealing with the high denomination, the smaller currency supposed to be in circulation in places like Hajejia,” he said.

An okada rider in the town, Bala Inuwa, who took our reporter from the NITDA community centre along Nguru road Hadejia to Benue Restaurant in the town, said he couldn’t remember the last time he handled the ₦100 note.

Mr Inuwa speculated that authorities in the country gradually withdrew from circulation of the N100 note without prior notice.

At the restaurant, the owner, popularly known as Madam Vicky, said the ₦100 denomination is gradually going out of circulation.

The CBN did not respond to inquiries regarding insights and measures being taken, as calls put through to the Acting Director of the Corporate Communications Department, Hakama Ali, did not connect and a message seeking clarification was not responded to.