The ongoing cash scarcity in Nigeria has led to a booming market for hawkers selling newly minted naira notes at exorbitant prices. Despite warnings from the Central Bank of Nigeria (CBN) against cash hoarding, many Nigerians still struggle to access cash at banks, while hawkers seem to have plenty, selling at inflated rates.
A seller in Lagos revealed that she charges N7,000 for N20,000 in fresh notes, citing the difficulty of getting cash from banks due to high fees charged by bank workers. Some bank employees are reportedly selling mint notes privately, marking up the prices significantly. For example, one banker admitted to selling N200,000 worth of fresh notes for N230,000, making a N30,000 profit.
Cash dealers, who often resell notes at weddings and parties, are also thriving in this environment. Some bank workers are accused of prioritizing cash dealers, providing them with mint notes at agreed-upon rates. In several states, including Osogbo and Ibadan, cash trading continues to flourish, with mint notes being sold for up to 50% above their face value.
While the CBN has threatened penalties for those facilitating this practice, including bank employees, its efforts appear ineffective so far. The Chairman of the Bank Directors Association of Nigeria condemned the practice, urging for arrests and prosecution of those involved. Despite this, cash hawking remains widespread, feeding the demand for cash in the midst of a financial crisis.
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