Central Bank of Nigeria Governor Godwin Emefiele. Photo: Twitter
New Delhi: With the International Monetary Fund having flagged disruptions to trade and payments, the Supreme Court in Nigeria has prevented the government from enforcing a February 11 deadline for citizens to swap old banknotes for new ones.
According to a report in the Al Jazeera, “Nigerians were due to turn in old 1,000, 500 and 200 naira banknotes (worth $2.17, $1.09 and $0.43) in exchange for newly designed notes by Friday as part of a central bank initiative to curb cash in circulation and control double-digit inflation.”
Fuel, cash shortage in Nigeria
Nigerians are facing petrol shortages and chaos at banks over a new currency swap ahead of presidential elections later this month.
According to a report in Al Jazeera, “From north to south, the country of about 215 million people is facing a complex combination of problems: petrol shortages and chaos at banks over a new currency swap, in addition to the chronic lack of water and electricity.”
Nigeria is grappling with widespread fuel shortages that are forcing motorists to spend hours in lines to buy gas and causing prices to surge for transportation and basic commodities.
How is the Russia-Ukraine war impacting Nigeria?
Russia’s war in Ukraine has caused prices to import fuel go up by more than 100% but retailers complain they can only charge the price set by the government, causing them to operate at a loss.
The cost of transporting gasoline to the depots has gone up by 80% in the past few months.
Gasoline shortages are frequent in Nigeria even though the country is one of Africa’s biggest producers of crude oil.
However, the country must import most of its fuel because it has very few functioning refineries.
Meanwhile, less than a month before voting day for the Presidential electiona, frustrations are growing across the country.
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