Cash crunch, elections: businesses adopt new tactics to stay afloat

Businesses are exploring new devices and ways to bypass the adverse effects of the naira redesign policy and mitigate post-election risks.

The anxiety over the over the outcome of the elections has subsided and Nigerians are beginning to adjust to a vastly reduced currency in circulation.

Many businesses in the Federal Capital Territory (FCT) have settled for payments through Point of Sale (PoS) terminals.

The initial hitches with electronic payment platforms have been by-passed, as businesses now use PoS terminals of money wallets which are more reliable than the terminals of traditional banks.

Nancy, who manages a street food establishment that serves fish, indomie in Gudu district, told The Nation that her business is gradually coming back to life.

Before and immediately after the Presidential election, she said her business witnessed a significant drop in patronage due largely to the apprehension of her customers over potential threats of violence.

Nancy also blamed the scarcity of cash and the problems associated with electronic payments in the last few weeks as another reason for a lull in business activity.

Several metres away from Nancy is the popular Gudu spare parts market. All the traders interviewed in the market corroborated what Nancy said.

The Gudu market traders now transact businesses with mechanics on a credit basis until the mechanics are paid.

Responding to the state of the economy, Mr. Idakolo said: “The state of the economy is worsening and is being compounded by the inaction of the CBN and federal government to the Supreme court’s ruling.

“The scarcity of new Naira notes have reached an unbearable height and there is confusion as regards the acceptance of the old N500 and N1,000 notes, although some banks have loaded it in thier ATMs and are even using it to pay customers withdrawals over the counter.

“However, many traders in the market and people are sceptical about the acceptance of the old notes.

“There is a school of thought that believes that the government might likely take action after the next round of elections but their silence has caused increased hardship and has affected commerce.

“I hope the incoming government will reverse this unpopular policy.”