Naira Scarcity Escalates, Boosting Profits For Parallel Market Traders Amid Bankers’ Alleged Collusion

Naira Scarcity Escalates, Boosting Profits For Parallel Market Traders Amid Bankers’ Alleged CollusionA surge in the hawking of naira notes at inflated prices has been observed across various parts of Nigeria, as citizens continue to face difficulties accessing cash in banking halls, despite repeated warnings from the Central Bank of Nigeria (CBN).....KINDLY READ THE FULL STORY HERE▶

The CBN had issued stern warnings that Deposit Money Banks (DMBs) found supporting or participating in cash hawking would face severe penalties. A circular dated November 13, 2024, and signed by the Acting Director of Currency Operations, Muhammad Olayemi, stressed that banks caught hoarding or diverting cash would be penalized. However, investigations by Saturday PUNCH revealed that while Nigerians were still struggling to withdraw cash at banking halls, hawkers were operating freely, offering mint naira notes at excessive prices.

In Lagos, a mint note seller in the Agege area, who identified herself as Adebimpe, revealed that she charges N7,000 for N20,000 worth of new notes. She attributed the high prices to the difficulty of accessing cash, with some bank workers demanding as much as N3,000 to release N10,000 in new notes. “We have to add our gains too,” Adebimpe explained.

A Saturday PUNCH undercover visit to a bank worker in Lagos uncovered further details. The bank worker disclosed that she often resold N200,000 in mint notes for N230,000, pocketing a N30,000 profit. “It’s not that you can’t get the cash for free, but the process of accessing it in the bank is difficult. That’s why even we, bank workers, have to settle people to get the mint notes,” she admitted.

In Abeokuta, Ogun State, another bank worker revealed that “cash dealers” who resold fresh naira notes at events such as weddings and parties were purchasing N20,000 worth of notes for N25,000, and N100,000 for N120,000. These dealers, who had special arrangements with banks, paid higher premiums to obtain the notes, which were often unavailable to regular bank customers.

A cash dealer named Rafiu explained how lucrative the business is. “We make N8,000 on N20,000, while for N100,000, we can earn between N25,000 and N30,000. We have arrangements with bank officials who sell us the notes at agreed rates,” she said.

In Osogbo, Osun State, hawking also thrived, with some mint sellers buying mint meant for customers at a premium. One seller shared that bank officials, often from new-generation banks, would sell N20,000 in mint notes for N5,000 and N50,000 for N8,000 to N10,000. The seller resold these at a markup, charging N28,000 for N20,000 worth of mint and N65,000 for N50,000.

The trend was similarly observed in Ibadan, Oyo State, where traders along Iwo Road sold fresh notes at higher prices.

Despite the CBN’s efforts to curb these practices, the continued collaboration between bank officials and cash hawkers remains a significant challenge, fueling the ongoing scarcity of cash in the country.

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