Naira Scarcity: How Digital Wallet Is Taking Advantage of Traditional Bank Failure

As cash shortages increase, researchers have predicted that the national economy would suffer long-term implications if nothing is done to solve the issue quickly. It was made known that the shortage of the naira was due to stop vote buying, but yet during the 2023 Presidential Election, there were still issues of ‘Vote Buying’.

The naira scarcity has been ongoing for two months now and there’s no saying when this will come to an end. Earlier on, the Supreme Court issued its decision on the continued use of the suspended old N500 and N1000 notes until December 31, 2023. Will this stand? Before this decision, there was a period when CBN flaunted the order of the Supreme Court and still went ahead to stop the use of old notes of N500 & N1000.

Now that the Supreme Court has ordered the continual use of the old note till 31st December 2023, we the citizens are hoping that the CBN will honour the directive and move into implementing the use of the old note. Although we still have the gubernatorial election of some states coming this week Saturday the 11th of March so there might still be a delay in the directive.

Sadly the ‘Naira Scarcity’ has forced many small businesses that rely on cash transactions to close (most food vendors, and even traders that make use of cash mostly have been forced to halt work or reduce production which has affected their productivity and income), while citizens find it hard in obtaining cash for daily necessities. 

Even local banks have complained about a lack of funds and have failed miserably in addressing the situation through their apps and USSD which has been one of the ways citizens make it through this period.  

Additionally, traditional banks were unable to satisfy their customers' requirements via mobile applications, as many customers complained about delayed transactions and troubles with traditional banks. This made it harder for companies and individuals to perform required transactions.

But, as the naira scarcity surged, many Nigerians turned to digital banks like Opay, Palmpay, and Kuda, among others.

These digital wallets have solved Nigeria's naira scarcity by giving a quick and easy means for users to save, send, and receive money online, therefore saving Citizens the day.

Users can load money into their digital wallets via bank transfers, credit/debit card payments, or other electronic ways. As a result, consumers may easily keep their money digitally, removing the need for physical cash.

Many Nigerians are attracted to digital wallets because they allow for quick and easy transfers between users regardless of location.

This is a short story about how Opay saved Adebayo Stephen  from embarrassment

Adebayo Stephen a Senior Writer and Researcher at Investingport discussed how ‘Opay’ saved him when he went on a date with a long-time friend.

“I happened to get across to my childhood friend which I scheduled to take on a date to have time to ourselves and talk back about old memories. Although I had a budget of 10k to spend on the date because of the location. On reaching there, I opened my local bank app to make purchases of drinks and meals, and boom my app was not opening, What do I do? I restarted my phone and it still did not work. Although I did not allow her to know what was happening, deep down I was sweating profusely.

I immediately messaged a friend of mine via WhatsApp and he showed me steps to open Opay and transfer my money from my local bank app to my Opay account, but that was not what I needed! I told him to pause his lectures and help me pay the money and once I’m finished, I’ll send it back to him. Immediately, it went through and the waiter saw the alert with an extra N2000 so that they can give me balance to transport back home. If not for Opay at that moment, I wouldn’t forgive myself for taking a girl out and embarrassing her. Before going home, I told her about it and she laughed also telling me about her experience also in a similar situation as she was also mad at me for not telling her about what I was facing.”