If you are an ardent reader of our weekly blog posts, then you will know that we made a post last week on the impact of the new naira policy on the LPG industry (customers and retailers). In fact, according to our survey 62.5% Nigerian believed the policy had a negative impact on their businesses. If you are yet to read it then click here to get the full details there.
However, as of March 12, 2023, the Central Bank of Nigeria has directed commercial banks across the country to dispense and accept old naira notes as legal tender. This came just hours after the Presidency stated that the CBN had no reason not to follow the Supreme Court's ruling on the naira redesign policy.
Of course, given the recent back-and-forth, it's easy to see why business owners are still wary of receiving these old notes. As of yesterday, our sister industry, oil marketers, insisted that they were no longer interested in old naira notes and would not collect them from the public. As of the time of writing, there has been no response from LPG marketers or retailers. However, LPG in Nigeria will continue to monitor the public's reaction to this new turn of events.
If the LPG industry responds positively to this new development and is able to return to receiving old notes as directed by CBN, we can expect LPG business transactions to pick up quickly. This is entirely dependent on whether there will be naira in circulation for potential customers and the retailers' willingness to accept them. As a result, the current decline in LPG purchases may stop, and all Nigerian citizens will have access to sustainable fuel (rural or urban).
What positive impacts will this new turn of events bring to the LPG industry?