In the last quarter of the year, The CBN governor, Godwin Emefiele, announced that the circulation of the new Naira notes N100, N200, N500, and N1000 by December 15, 2022.
The last time the Naira notes were redesigned was in 2014, and the only currency affected was N100. “Although global best practice is to redesign, produce and circulate new local currency every 5–8 years, the Naira has not been redesigned in the last 20 years, and January 31, 2023, the current series of Naira bills are expected to be phased out. – CBN Governor Godwin Emefiele
What does this mean to the farmers?
Like we all know, small holder farmers are cash driven in their entire operations. Consequently, agents and aggregators might be critical in exchanging old notes for commodities this period. If attention is not paid to this, the small holder farmers would be left with so much cash at hand and the entire challenge of having to go to the bank to change them.
Farmers who live in rural areas far away from the banks would experience hardship swapping the old notes while obtaining the new ones, consequently, they might not be able to purchase the inputs they require for the new planting season ahead if they are unable to do away the old notes before the stipulated deadline. On the other hand, farmers that are not financially inclusive might have to travel to the nearest bank to open an account before changing the old notes.
If this transition is not properly managed for the small holder farmers and the agricultural ecosystem that enables a smooth agricultural practice from farm to table, there could likely be another hike in food supply threatening Nigeria’s Food Security.
It is amazing how economic indices affects every other aspect of a Nation’s building including the agribusiness. Consequently, it therefore becomes necessary that players in the sector must begin to help the small holder farmers to understand digital financing as an alternative for situation like this. Farmers can use e-wallets to transact in future and this future we are talking about is already here with the agric-tech players.
Some Suggestive Control ?
Farmers need to be educated to do minimal cash transactions and not get too excited when there is a huge cash involved in exchange for grains or other commodities.
More banks need to send mobile agents to these rural areas to help farmers swap their old notes and save them time. This would give adequate time to ease the transition and ensure farmers don’t run at a loss.
Our involvement over the past years has revealed significant gaps such as lack of visibility, risky/insecure transactions, lack of information, financial exclusion, limited credible data management systems, and a lack of accountability among others. This has greatly limited the involvement of the private sector, development partners and government institutions.
At Agriarche, we have identified these critical pain points and created a system that enables efficiency and collaboration with strategic partners through technology to provide solutions for all actors and stakeholders. We are set on a mission to impact the general livelihood of farmers, agripreneurs, and households while guaranteeing maximum returns to financial partners.
Visit www.agriarche.com today for more information.