From Joy Imanah and Daramola Eniola
The scarcity of the Naira currently affecting Small medium enterprises (SMEs)negatively, is making it difficult for most operators to access cash needed to do business thus threatening the Nigerian economy.
Founder of Spark Varieties, a small fast food chain at the University of Lagos, Mr George Ejelonu, who made the remark, yesterday, lamented that the naira shortage was having a devastating effect on businesses, with many entrepreneurs finding it increasingly difficult to access cash to purchase goods, pay workers and transact business.
Ejelonu pointed out that the situation was already threatening the survival of the economy as most businesses are no longer thriving.
The Spark Varieties CEO, who agreed that the country was already bedevilled with inflation and hardship, highlighted the problem of unemployment and the need for entrepreneurs to be encouraged by the government with soft loans and enabling environments for businesses to thrive.
He stated that he has to use a point-of-sale machine to withdraw money and was charged more for it, lamenting that the extra charge is to be passed on to his customers. The scarcity of the Naira is also affecting the movement of goods, as many distributors do not accept transfers, making it more difficult for businesses to receive and purchase the supplies they need to keep their operations running. According to him, the recent push towards a cashless system is also having a negative impact, as many people in Nigeria are either illiterate or can’t do online transactions.
On his experience with the commercial bank within his local community, George stated that it was a horrible experience that sapped his productive time as he had to spend time queuing for cash.
He called for new notes to be pushed into circulation, urging government to allow the old and new naira notes to flow until the old naira is phased out to abate the current state of the economy. Nigerians need cash and it’s been difficult for every business owner right now, George said.