Residents of border communities in states such as Sokoto, Zamfara, Katsina, Adamawa, and Kwara have increasingly turned to the CFA franc due to the scarcity of new naira notes across Nigeria. This trend is particularly evident among traders and commercial drivers, who are rejecting old naira notes and insisting that customers without the newly redesigned currency must pay for goods and services using CFAs. The CFA franc serves as legal tender in eight West African countries, including Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo, which are part of the West African Economic and Monetary Union.
Investigations have shown that businessmen and traders in the Zurmi and Shinkafi local government areas of Zamfara State, which border Niger Republic, prefer the CFA to the naira. Many traders in these areas have begun selling their goods in CFA due to concerns about the unavailability of new naira notes. A cattle dealer named Musa Shehu mentioned that he stopped accepting Nigerian currency after the Central Bank of Nigeria announced a deadline for swapping the N1,000, N500, and N200 notes. He explained, “I have since stopped receiving the old naira notes because I don’t have an account and I can’t go to the bank.” Similarly, a trader in Shinkafi town, who frequently travels between Nigeria and Niger Republic, stated that most of his customers pay in CFA. He emphasized, “I cannot collect old naira notes and give out my commodities to any customer. But I will collect new naira notes and CFA because I am afraid of losing my money if the time for the exchange expires.”
In Dada village, a grain seller named Muhammadu Isa revealed that he ceased selling grains for Nigerian currency after the CBN’s policy on new naira notes was introduced. He now only sells to those who can pay in CFA to avoid financial losses, recalling how his father lost money during the naira redesign in 1983. Isa insisted that he would not accept old naira notes, citing the absence of banks or Point of Sale terminals in his community. He stated, “If anybody wants to buy grains from me, he must pay in CFA or forget it. I will not collect old naira notes because I don’t know what to do with them after the expiration of the deadline.”
Commercial drivers operating between Nigeria and Niger Republic have also stopped accepting old naira notes, arguing that CFA is the only legal tender recognized along the Nigeria-Niger borders. A driver named Alhaji Hamisu explained that passengers must pay in CFA for travel to Niger Republic or back to Nigeria, as old naira notes are not accepted. He recounted an experience where he was unable to buy fuel with old naira notes in Niger Republic, emphasizing that no commercial driver would accept them for cross-border journeys.
In Sokoto State, border traders similarly prefer to sell their products in CFA due to the unavailability of new naira notes and the ongoing depreciation of the naira. Mallam Sidi Isa, a cattle trader in Illela, expressed his preference for the franc, citing the introduction of new naira notes and the cashless policy. Mr. Jamiu Ola, a motor mechanic, noted that the CFA is less prone to devaluation compared to the naira. Businessman Mallam Haruna Abdulazeez shared that he shifted his operations to Niger Republic to cope with the economic challenges in Nigeria, stating that even minor goods yield profits due to favorable exchange rates.
In Adamawa State, the Chairman of Mubi International Cattle Market, Jafaru Hamman, lamented the scarcity of newly redesigned naira notes, which has adversely affected commerce in border communities. He noted that many traders in Mubi are accustomed to cash transactions, making the transition to a cashless policy challenging. Hamman explained that some traders had already been using the CFA for transactions before the CBN policy, but the volume of such trade was minimal. He observed that as the deadline for the naira swap approaches and old currency faces rejection, traders are left with the choice of accepting CFA or halting their business operations altogether.
In Katsina State, cattle markets in Dankarma, Jibia, and Maiadua are experiencing similar challenges. While trading previously occurred in both naira and CFA, the scarcity of naira notes has forced most cattle dealers to conduct transactions exclusively in CFA. Mallam Ahmadu Ousseini, a trader at Maiadua Kara International market, stated that he has primarily accepted CFA for transactions over the past three weeks, as customers struggle to obtain new naira notes. Hajiya Bilikisu Ahmed, who sells cattle in Lagos and other South-West cities, reported significant losses due to the currency scarcity, further complicated by network issues at local banks.
The situation has also impacted cattle trade in Borno State, where merchants like Mohammed Ali have suspended their operations due to the unavailability of cash. Ali noted that the exchange rate for CFA has increased, making it more difficult to conduct business. He lamented that the volume of cattle arriving in markets has drastically decreased, with only a fraction of the usual supply making it to market. Chief cattle dealer Mohammed Gwamna echoed these sentiments, stating that the naira redesign policy has severely affected livelihoods and reduced the cattle population in markets by approximately 80 percent.
In Ogun State, traders in Ipokia have resorted to traveling to Benin Republic to exchange new naira notes for CFAs after selling their goods. Youth leader Deji Mawuntin highlighted the struggles faced by residents in obtaining new notes and accused bank workers of selling them to racketeers in Benin Republic. In Kwara State, traders in Chikanda have expressed a preference for CFA due to the ongoing shortage of new naira notes. Alhaji Bashir Mohammed, a trader, explained that the scarcity has made it easier to obtain CFA than new naira notes.
As of the time of this report, the Central Bank of Nigeria’s spokesperson, Osita Nwanisobi, had not responded to inquiries regarding the displacement of the naira by CFA in various regions. However, Johnson Chukwu, Managing Director of Cowry Asset Management Limited, described the shift to CFA as a logical response to the scarcity of new notes. Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprises, noted that this trend is a natural consequence of the insufficient supply of new notes for business operations in border areas.
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