Scarcity of N100 notes hits Lagos

By Diden Abigail owuntarose

The scarcity of the N100 note has become a growing concern in Lagos, with commuters, traders and small business operators increasingly finding it difficult to obtain the denomination for everyday transactions.

Across some parts of the state, residents say the problem is particularly noticeable at bus stops, markets, shops and other places where small value cash transactions are common.

For many commuters, the N100 note is still important for settling short distance transport fares and receiving small balances. Its scarcity has therefore created difficulties for both passengers and transport operators, particularly when customers tender larger denominations.

Some traders also say they now struggle to provide exact change to customers, leading to situations where buyers have to purchase additional items or accept alternative denominations.

The situation has also increased pressure on small businesses that depend heavily on cash transactions. Operators who frequently handle small payments say obtaining sufficient N100 notes from banks and other cash points can be difficult.

Although the scarcity is being felt by residents, the exact reasons behind the current shortage may vary from one area to another.

Cash circulation patterns, increased demand for lower denominations and the movement of cash through businesses and financial institutions can all affect the availability of particular denominations.

The development has renewed attention on the role of lower value naira notes in Lagos’ largely cash driven informal economy, where small transactions remain common despite the growing use of electronic payments.
Residents are now calling for improved availability of lower denominations to ease daily transactions and reduce the difficulties caused by the shortage of N100 notes.

For commuters, traders and other low value cash users, the availability of the N100 note remains more than a convenience it is an important part of completing everyday transactions in Lagos.