Naira Notes Sold At Cutthroat Rates
The hawking of naira notes at exorbitant rates has surged across Nigeria as citizens continue to grapple with limited cash availability in banking halls, despite repeated warnings and threats from the Central Bank of Nigeria (CBN).
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EKO HOT BLOG reports that the CBN recently reiterated its stance against the hoarding and diversion of cash by Deposit Money Banks (DMBs). In a circular dated November 13, 2024, signed by Acting Director of Currency Operations, Muhammad Olayemi, the apex bank warned that erring banks would face severe penalties. However, on-ground reports reveal that cash hawking continues to thrive in major cities.
A mint seller in Lagos disclosed selling N20,000 new notes for N27,000, attributing the high cost to bankers charging steep rates to access cash. A banker in the state revealed selling N200,000 in mint notes for N230,000, explaining that internal arrangements are often made to release cash for resellers.
Similarly, cash hawkers in Ogun State admitted buying directly from bank officials. One dealer revealed that N20,000 worth of mint in N200 denominations costs N25,000, while N100,000 is sold for N120,000. Fresh notes, they said, are in high demand for events like weddings and burials.
The practice is widespread. In Osun and Oyo states, hawkers confirmed secret deals with bank officials, who prioritize selling cash to high-paying clients. Some bank workers reportedly collaborate with dealers to profit from the scarcity, while major supermarkets and fuel stations in Imo State have turned to hawking cash for additional revenue.
Naira Notes Sold At Cutthroat Rates
Despite mounting evidence, the CBN remains largely unresponsive. Efforts to reach the Acting Director of Corporate Communications, Mrs. Hakama Ali, yielded no results.
Reacting to the situation, Mustafa Chike-Obi, Chairman of the Bank Directors Association of Nigeria, condemned cash hawking, calling for the arrest of culprits and attributing the issue to insufficient cash supply.
Human rights lawyer Festus Ogun urged security agencies to support the CBN in curbing cash hawking, while the Economic and Financial Crimes Commission (EFCC) and police have yet to respond to the allegations.
The rising cash hawking trend highlights ongoing flaws in the nation’s financial system, exacerbating the hardship faced by ordinary Nigerians.
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