A money reform in Nigeria, Africa’s largest economy, has led to an unprecedented cash shortage in the West African country. A large part of the approximately 220 million inhabitants depend on cash to pay for food, transport or medicine – but while the validity of the old banknotes of the national currency Naira according to the will of the government and central bank, new notes are hardly available.
The chaos is fueling despair and anger ahead of the already polarized presidential and parliamentary elections on February 25. Next Wednesday, the country’s Supreme Court will hear complaints from several states about an extension of the validity period of the old banknotes.
New banknotes to make counterfeiting and money laundering more difficult
The central bank of Nigeria announced in the autumn that it would replace the notes in the highest denominations of 1000 (approximately 2 euros), 500 and 200 naira. The stated aim of the reform was to make counterfeiting and money laundering more difficult and to give the central bank more control over the money in circulation – sometimes also to end widespread purchases by voters in Nigeria.
ATMs in Nigeria are empty
But the banks have been unable to keep up with the demand for new banknotes for weeks. For fear of being left with the money, many dealers stopped accepting old notes before the redemption period had expired. Those who had old cash credited to their account now often stand in line for empty ATMs with an empty wallet. There are riots at switches. At least one man was shot dead during protests. According to surveys, more than a third of citizens have no account at all and depend on cash.
Many people can no longer get groceries
“As a result, many people are starving, it must be said so clearly. Many people can no longer get food,” said the Konrad Adenauer Foundation’s Nigerian foreign affairs manager, Marija Peran, the German news agency. that is no longer the case.”
Central bank blames greed and corruption
The central bank insists it has printed enough banknotes. Greed and corruption are to blame for the scarcity – for example, with bank employees who hoard the money to make a profit on the shortage. In fact, illicit money dealers can buy the new banknotes on the black market – for a significant surcharge. Central bank governor Godwin Emefiele on Tuesday spoke out against the Supreme Court’s order to delay the phasing out of old banknotes pending a verdict.
The shortage of cash is further complicating elections in Africa’s most populous country – alongside the catastrophic security situation in much of the country, where jihadists, ethnic conflicts over land, separatists and criminal gangs threaten to limit elections. Besides massive hurdles for voters and political explosives, the financial crisis threatens to reignite corruption. “Part of the central bank’s intent was to take large amounts of private cash out of the market to prevent vote buying,” Peran said. “The problem is that buying votes now becomes a lot more attractive, whether it’s with cash or with a bag of rice.”
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
