A severe shortage of N100 notes is wreaking havoc on everyday transactions across Nigeria, leaving small business owners, commuters, and consumers grappling with new obstacles to day-to-day life.
This unprecedented scarcity is causing extensive frustration, especially for small traders, market vendors, transport operators, and point-of-sale (POS) agents who heavily rely on lower denominations for smooth transactions.
Across Nigeria, people are voicing their struggles as the scarcity forces them to find creative solutions – or lose income. Many speculate that commercial banks are withholding lower denominations, while others believe the Central Bank of Nigeria (CBN) may have slowed the production of N100 notes. Yet, with no clarity or official response, frustrations are boiling over as Nigerians demand action.
In the capital’s suburbs, like the ACO Housing Estate along Abuja’s Airport Road, the effects of the shortage are palpable. Most residents still rely on cash transactions, and the scarcity of N100 notes has hit small traders hardest. Salma, a local pepper and tomato vendor, shared her frustration: “There are days I don’t even get a single N100 note. I’ve lost sales because I can’t make change, sometimes giving extra produce instead.”
For Hannah, a Lagos-based seller of raw foodstuffs, the situation has become an everyday struggle. “When I don’t have the right balance, I end up giving customers sweets or biscuits to cover the deficit. I’ve lost part of my income because some customers don’t come back with change,” she explained.
Commuters are not spared either. Tunde, a civil servant who frequently uses public transport, noted that drivers now demand the exact fare, often rounding up if passengers don’t have the right amount. “If I don’t have N100 for balance, drivers insist on taking more. It’s tiring and expensive,” he said. Even within his church, where he often managed to secure N100 notes, he’s noticed a sharp decline.
The problem is not isolated to urban centers. In Hadejia, Jigawa State’s bustling commercial area, local vendors are also feeling the pinch. Ibrahim, a tea vendor, said, “I sometimes lose customers because I don’t have N100 for change, and it’s affecting my business. Smaller denominations should be more available, especially in places like Hadejia.”
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The Nigerian House of Representatives recently urged the CBN to ensure the availability of new notes following a call to gradually withdraw old naira notes. This has stirred concern among citizens, many of whom vividly remember the cash crisis following the introduction of new N200, N500, and N1,000 notes in late 2022.
While the CBN has yet to address these concerns, economist Dr. Michael Durojaiye emphasized the importance of maintaining the supply of lower denominations like N100 to support everyday transactions. He warned that inadequate supply could lead to hoarding, further complicating the situation. “N100 is vital for daily trade. Without it, the pressure will push people toward hoarding, worsening an already difficult situation,” he said.
Dr. Durojaiye also attributes part of the problem to inflation, which hit 32.7% in September 2024, driving up the cost of goods and services and, in turn, increasing demand for smaller denominations. “The Naira’s purchasing power has eroded, meaning more people need smaller notes. Without intervention, we could see N100 notes become as rare as coins,” he added.
Amid rising inflation and diminishing purchasing power, POS operators, like Grace in Lagos, struggle to meet demand. “Once my N100 notes run out, I have to turn away customers or offer alternative denominations, which many find inconvenient,” she explained.
Transportation workers are also deeply affected. Musa, a tricycle operator in Ibadan, shared, “Most of my customers need N100 for exact fare. When they don’t have it, it creates tension, and I lose business.”
As the scarcity persists, Nigerian citizens are demanding clarity and action from the CBN. While inflation, banking practices, and supply issues seem to be fueling the problem, the continued silence from authorities only heightens public frustration.
If no immediate intervention is made to ease the scarcity, many fear it could cascade into an even larger crisis, one that disrupts the daily lives of millions across Nigeria.
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