Salient Question For Leaderships Of CBN And Commercial Banks: Is Nigeria Set To Adopt A Barter Economy?

By Isaac Asabor

It is no more news that the leadership of Nigeria’s apex bank, the Central Bank of Nigeria (CBN) had, on December 15, 2022, commenced circulating newly redesigned N200, N500, and N1000 notes and set January 31, 2023, as the deadline for the withdrawal of old notes.

However, just a few days before the deadline set by the CBN, many Nigerians have been narrating tales of woethey variously experienced in the bid to withdraw both the old and new notes as they are not available in the banks even though there are some “privileged Nigerians” that have continued to spend the new notes, to the extent of indiscriminately, and recklessly spraying variant denominations of the notes at social events.

In fact, to paint a picture of the challenges faced by Nigerians due to the scarcity of the new notes, it will be illustrative enough in this context to say that many Nigerians are dissatisfied with the CBN over its intransigent stance of vowing not to extend the deadline set for the withdrawal of the old notes from circulation. Against the foregoing backdrop, it is not an exaggeration to say that the monetary policy by the CBN on N200, N500, and N1000 Naira notes has created ‘great’ business opportunities for some Nigerians as some unscrupulous elements now sell the new Naira notes to helpless and hapless Nigerians.

As gathered, while the new Naira notes are hardly issued to customers by the banks across communities in Lagos State, some parts of Ogun States, particularly within the Mowe-Ibafo axis, virtually all the Automated Teller Machines (ATMs) were not loaded with banknotes for customers to access. Paradoxically, the same new Naira notes denied most Nigerians, are currently making many people rich as they are allegedly trading on it unhindered.

At this juncture, it is expedient to note that efforts being made by members of the National Assembly (NASS) to address the challenge have for the umpteenth time been rebuffed by the leadership of the CBN so much that the Speaker of the House of Representatives, Femi Gbajabiamila, recently became infuriated, and threatenedthat the lawmakers may issue an arrest warrant against the Governor of the CBN, Godwin Emefiele, and any managing director of any commercial bank that fails to honor the invitation of the House in respect to the deadline of the phase-out of old N1000, N500, and N200 naira notes, and scarcity of the new notes.

Gbajabiamila issued the threat on Thursday, January 26, 2023, at plenary while reacting to a letter addressed to the House by Emefiele, informing the lawmakers of the apex bank’s inability to honor the invitation of the House to appear before an ad-hoc Committee set up to interface with the apex bank and commercial banks on the deadline for the phase-out of the old notes.

Ostensibly foreseeing the financial crisis, particularly across consumer markets, which the scarcity of both the old and new naira note may trigger, say a few days before the deadline or after the deadline, the Senate and House of Representatives have been asking the CBN to immediately extend the deadline for the withdrawal of old naira notes from circulation to July 31, 2023, but the CBN has vehemently insisted that the date remains sacrosanct.

At this juncture, it is expedient to ask the leadership of the CBN, and that of various commercial banks: “Is Nigeria Set To Adopt A Barter Economy?”

For those that do not understand what a barter economy is, it is expedient to enlighten them in this context by saying that “A barter economy is a cashless economic system in which services and goods are traded at negotiated rates.

“Barter-based economies are one of the earliest, predating monetary systems and even recorded history. People can successfully use barter in almost any field. Informally, people often participate in barter and other reciprocal systems without really ever thinking about it as such, for example, providing web design or tech support for a farmer or baker and receiving vegetables or baked goods in return. Strictly Internet-based exchanges are common as well, for example exchanging content creation for research.

“Because barter is based on reciprocity, it requires a mutual coincidence of wants between traders. This requirement complicates barter, but in a sufficiently large market system, trade can be found to supply most wants. According to proponents, mutuality fosters a sense of connectedness and community among traders”.

Given the foregoing, it is germane to say that in recent years that barter has enjoyed a resurgence as a means of countering economic insecurity, unemployment, and worker exploitation. The nature of modern-day work, the pervasiveness of the Internet, and the rise of social networking have all contributed to its spread. Other examples of alternative economic systems include gift economies, sharing economies, and time banks.

These alternative systems are not mutually exclusive, and all can operate within a predominantly capitalist system. However, because these systems operate in terms of reciprocity rather than profit and growth, there are concerns (or hopes) that they could undermine the current economic system.

Be that as it may, it is expedient to ask again, with the way things are going, “Is Nigeria set to adopt a barter economy?

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