Naira scarcity: LCCI warns Businesses suffering consequences of “currency policy lapses”

The Lagos Chamber of Commerce and Industry (LCCI) has warned that businesses are suffering the consequences of CBN’s currency management policy lapses.

This was disclosed by the Director General of LCCI, Dr Chinyere Alumona on Friday, as reported by the News Agency of Nigeria.

The LCCI’s warning comes at a time Nigerians are enduring heavy roadblocks due to the scarcity of naira notes following the apex bank’s naira redesign and cashless policies.

The LCCI’s position: The LCCI added it does not see any value in this if the scarcity of the new Naira notes persists. Dr Chinyere Alumona stated that when redesigned Naira notes were launched in December, expectations were high for a smooth transition, however, Nigerians now regret as expectations have been dashed with business deals impeded and  time and value lost.

Policy Lapses: DR Alumona added that the policy is causing losses to the business community, tagging it as a Policy lapse as withdrawal limits and scarcity of new notes might have started impacting businesses and livelihoods  beyond intentions.

“While banks have endeavoured to meet the current demands of customers through automatic teller machines and electronic transfers, Naira scarcity has rendered their efforts ineffective. Businesses are suffering the consequences of the CBN currency management policy lapses.

“Regarding the deadline extension for phasing out old notes, the chamber does not see any value in this if the scarcity of the new Naira notes persists.”
The LCCI boss added that despite initially supporting the policy, the phasing out of old notes and redesign should have been better planned by the CBN without causing hardship for businesses.

What you should know: Nairametrics gathered that  POS operators now charge much more than usual for cash withdrawals and transfers, blaming the excess charge on the difficulties they face while getting cash.

Some of the POS outlets visited in Ojota, Abule-Egba, and Ikeja axis were either not dispensing the new notes or charging extra cash for them.