Traders Turn To Barter Trading In Benue Over Naira Scarcity



Traders Turn To Barter Trading In Benue Over Naira Scarcity

Benue State, one of Nigeria’s 36 states, is experiencing a cash crisis due to the Central Bank of Nigeria’s naira redesign policy. This has forced traders to resort to barter trading, accepting payment in goods or produce instead of cash.

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“Benue State is located in the north-central region of Nigeria, with Makurdi as its capital city. It is known as the “Food Basket of the Nation” because of its agricultural abundance, especially in yams, cassava, rice, and beans. The state is also home to some significant historical and cultural sites such as the Katsina-Ala River, Ikyogen Hills, and the Oju Local Government Area rock formations. The population of Benue State is predominantly made up of the Tiv, Idoma, and Igede ethnic groups, among others. The state is also home to the Federal University of Agriculture, Makurdi, and the Benue State University, which offer higher education opportunities to residents and students from other parts of Nigeria.“

With the policy causing widespread unrest and hardship, many are calling on the government to intervene and rescind the policy.

Barter Trade: A Viable Alternative to Cash
With cash in short supply, many traders in Benue State have turned to bartering their goods for other products they need.

Bartering involves the exchange of goods or services for other goods or services without the use of money. In other words, instead of using cash to purchase goods, traders exchange their goods for other goods that they need.

Barter trading has become a viable alternative to cash in Benue State as many traders have been unable to access the new redesigned Naira notes due to the central bank’s policies. This has made it difficult for them to carry out transactions using cash. To keep their businesses afloat, traders have had to explore other options, and bartering has proven to be one of the most practical solutions.

For example, a foodstuff trader who has a surplus of yams but needs beans to complete a customer’s order can offer the yams in exchange for beans from another trader. In this way, both traders benefit from the transaction without the need for cash.

While barter trading may not be the most ideal option, it has been necessary for many traders in Benue State to survive the crisis. The shortage of cash has made it difficult for them to buy goods and services, pay bills, and run their businesses. Therefore, barter trading has become an essential tool for them to keep their businesses afloat and meet their basic needs until the cash shortage is resolved.

Growing Calls for Government Intervention
Despite the challenges posed by the cash crisis, some residents of Benue State are still hopeful that the government will take action to alleviate the situation.

Grace Ordah, another resident of the state, is calling on the Nigerian government to rescind the naira redesign policy, which she believes is at the root of the crisis. As previously reported, the Nigerian Supreme Court is set to rule on a case challenging the policy on March 3.

Cash Crisis in Benue State: Crypto as Cash Alternative in Benue State

Cryptocurrencies could provide a more efficient and modern solution to the cash shortage problem faced by traders in Benue State. Cryptocurrencies such as Bitcoin, Ethereum, and Litecoin can be used to facilitate transactions without the need for cash.

With the use of mobile devices and internet connectivity, traders can easily send and receive cryptocurrency payments, even without a bank account.

Unlike barter trading, which relies on the availability and demand of specific goods or services, cryptocurrencies provide a more universal and standardized means of exchange.

Additionally, cryptocurrencies can be easily converted into local currency or other assets, providing greater flexibility and liquidity to traders.

With their decentralized and secure nature, cryptocurrencies also provide protection against inflation and government interventions, making them a more reliable alternative to local currency in times of crisis.

Overall, cryptocurrencies offer a promising solution to the cash shortage problem faced by traders in Benue State and other regions where similar issues exist.

Cash Crisis in Benue State: Conclusion

The cash crisis in Benue State is a reminder of the importance of sound economic policies that prioritize the needs of the people. As the government seeks to address this issue, it is critical that it takes into account the impact of its policies on ordinary citizens.

While barter trading has helped many businesses stay afloat in the face of the crisis, it is not a long-term solution. The government must act quickly to address the underlying issues and provide relief to those most affected by the crisis.

Source-Nairaland Forum



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