Naira scarcity: Businesses feeling the pinch

The Lagos Chamber of Commerce and Industry, LCCI, has raised concerns about the impact of Nigeria's naira redesign policy on businesses in the country. Dr. Chinyere Almona, the Director-General of the chamber, highlighted the challenges faced by businesses as the country transitions to the use of new naira notes for transactions. In a recent interview on CNBC Africa, Dr. Almona expressed the chamber's expectations for a smooth transition but outlined the difficulties businesses are currently facing due to the poor implementation of the policy. The naira redesign policy aims to address three main objectives: reducing currency circulation, discouraging counterfeiting, and tackling illicit funds in circulation. While these objectives are commendable, the chamber emphasizes that the key issue lies in the implementation of the policy. Dr. Almona shared messages from LCCI members expressing frustration with banks' inability to provide cash for basic operational expenses, such as repairs. The lack of access to cash is causing distress and straining businesses already grappling with economic challenges. The Central Bank of Nigeria (CBN) has faced criticism for the poor rollout of the new notes, with some banks failing to dispense cash and honor check payments. Despite the CBN's assurance of daily cash allocations to banks, many institutions have not complied with the directive, leading to disruptions in business operations. The LCCI has called for more transparency and public enlightenment from the CBN to address grey areas in the policy implementation. President Muhammadu Buhari has requested for a seven-day grace period to assess the situation and alleviate the challenges faced by Nigerians. While the LCCI acknowledges the president's timeline, concerns remain about the immediate impact on businesses and individuals. Dr. Almona emphasized the need for tangible solutions to ease the pressure on businesses and improve the overall business environment in Nigeria. Responding to comparisons with India's past currency restructuring, Dr. Almona stressed the importance of learning from others' experiences to avoid unnecessary hardships. She pointed out that Nigeria could have implemented a more effective strategy considering the lessons from India's challenges. The LCCI had previously cautioned about the short timeframe provided for the policy implementation, citing the need for better planning and management to mitigate disruptions. As Nigeria navigates the complexities of the naira redesign policy, the LCCI continues to advocate for a conducive business environment that supports productivity and growth. The chamber urges the CBN to address implementation gaps, enhance communication with the public, and prioritize the interests of businesses and individuals struggling amid the currency transition.