by Vivian Okafor

The Christmas season is upon us, a time of merriment and celebration in many Nigerian homes. Traditionally, this period is marked by lavish spending as individuals strive to make the festive season memorable and unforgettable. However, this year’s celebration seems different as the markets, once bustling with activity, are less crowded than usual.

Many women who typically purchase food items in bulk have opted for smaller quantities this time around. Furthermore, some shops that previously accepted bank transfers now refuse to do so, except with the option of extra charges. When queried about this change, the uniform response points to one major issue: the scarcity of cash.

This cash scarcity has become a significant challenge for the Nigerian economy, particularly during this festive season. Some individuals have even resorted to exploiting this situation for personal gain. They withdraw large sums of cash from banks that still dispense it and then sell it to POS vendors at exorbitant rates.

A businesswoman lamented that cash no longer circulates in the market. According to her, those who manage to obtain cash sell it to POS vendors, who then resell it at outrageous prices. In some cases, ₦10,000 withdrawal which used to attract ₦200 charge now attracts a high as ₦500, while ₦20,000 which was formerly charged at the rate of ₦400 is now charged at ₦1,000. We are indeed living in an era where money is used to buy money.

The most devastating aspect of the current economic situation is that the available money is insufficient to meet the people’s basic needs. Ironically, the scarcity of cash has triggered a surge in prices of essential goods, making survival even more challenging for the masses. As a result, many are forced to explore alternative means to make ends meet.

Nigeria, once regarded as the giant of Africa, seems to be telling a different story this season. Another businesswoman attributed the cause of this cash scarcity to individuals who hoard cash instead of depositing it in banks. She said: “The major cause of this cash scarcity are those people who hoard plenty cash instead of depositing them in the bank.”

As the year draws to a close, many Nigerians are filled with mixed feelings about what to expect next, especially in the coming year, Nevertheless, the festive still spirit remains, with the sound of “Jingle Bells” filling the air, even as we celebrate a “Cashless Christmas”.