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Shortage of low currency denominations hits small businesses

By on February 4, 2014

The shortage of lower denominations of the nation’s currency in circulation has impacted negatively on small businesses in Port Harcourt, the News Agency of Nigeria (NAN) reports.

Investigations by NAN in Port Harcourt shows that N20, N50 and N100 denominations were in short supply.

The investigation shows that the worst affected businesses are hawkers, petty traders, commercial motor drivers and other informal business owners.

Most taxi and bus drivers in their bid to save time and avoid arguments with commuters now demand their complete fare before allowing people to board their vehicles.

Mr John Chuku, a commercial bus driver, said he had refused to carry many passengers because they did not possess lower denominations.

Chuku, who declined to disclose the losses he incurred so far, said the shortage of the lower denominations had made the transportation business cumbersome.

Also speaking, Mrs Esther Worgu, a trader at Diobu market, said her daily turnover had dropped following the shortage of lower currency denominations.

She said that people were not patronising her because of the difficulties in raising the accurate denominations for her wares while she too could not get the currencies to balance them.

Mr Emeka Chinedu, a soft drinks trader at Mile One market, said the shortage of lower currencies had affected his daily sales and turnover.

He said he was happy with the improved electricity supply in Rivers, but that the balance or “change problem” was a setback to his business.

Mr Okafor Dike, who commutes from Oyigbo to Port Harcourt city centre daily for work, said he now warehoused lower currency denominations before boarding commercial vehicles.

According to him, warehousing of lower currency denominations saves him daily from commercial drivers’ embarrassment.

The situation has degenerated further as traders and other service providers in the informal sector usually pick offence when customers pay with N1,000 or N500 notes for items below N200.

Meanwhile, some Port Harcourt residents have attributed the shortage to the inability of banks to upload lower currency denomination in the automated teller machines.

They argued that the ATM dispensed only higher currency denominations.

 

 

(NAN)