Why ₦5, ₦10 and ₦20 Notes Are Disappearing From Everyday Transactions

Have you noticed how difficult it is to use ₦5, ₦10 and ₦20 notes at markets, bus stops and small shops? Many traders and transport operators now avoid them because inflation has reduced what they can buy. A recent field report found that some traders will not accept anything below ₦50. Items that once sold for a few naira now cost far more, while short tricycle trips that used to cost ₦100 can now cost ₦200. As a result, the smallest notes rarely fit into everyday payments or change. These notes remain legal tender. Their problem is not validity but purchasing power. People increasingly round up prices, forgo small change or ask for larger denominations. There is also a separate issue of people wrongly doubting older ₦100 notes. Unlike the smaller denominations, that is mainly a misunderstanding about legal tender status. Both situations show how cash is becoming harder to use in a high-inflation economy.

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