The scarcity of the new naira notes worsened on Monday as currency racketeers exploited the situation, preying on Nigerians desperate to obtain the new currency. In various locations, including Abuja, Lagos, Anambra, and other states, black market sellers were seen offering the new notes to those unwilling to endure the long queues at Automated Teller Machines (ATMs). Abdul Mohammed, a currency seller operating under the Dei-Dei pedestrian bridge in the Federal Capital Territory, noted that the inability of banks to distribute the new notes had significantly increased demand. He stated, “We normally sell N10,000 for N13,000 and N20,000 for N26,000. I can provide all the denominations you want, including N200, N500, and N1,000 new naira notes.” When asked about supplying N600,000 in new notes, he promised to notify the correspondent when they became available, explaining that the scarcity justified their high prices. He added, “Getting the new notes is tough and expensive for us. The issue of changing the notes has caused many problems, and the demand is high.”
A currency exchange operator, who wished to remain anonymous, explained that currency exchangers often maintain relationships with bank staff. However, they typically do not pay for the currencies directly, instead offering incentives or adjusting prices based on demand. “If I need an amount, I call my contact in the bank to check availability and the buy rate, then I buffer it by N5-N10 for resale,” he said. He noted that during periods of high demand, bank staff might request something in return. For instance, N50,000 in new notes could resell for about N53,000 to N60,000.
In Anambra, many banks in Onitsha, Nnewi, Obosi, Nkpor, Ekwulobia, and parts of Awka were closed due to a Monday sit-at-home order. Correspondents observed that most ATMs were turned off, and the few operational ones dispensed only old notes, despite being overwhelmed by crowds. In the early hours of Monday, two individuals with a public address system urged residents in Onitsha and Nkpor to come out and buy the new notes, charging N3,000 for every N10,000 withdrawal.
In Lagos and Ogun states, currency racketeers dominated the naira swap initiative, allegedly colluding with some bankers. At Access Bank on Ikorodu Road, a resident reported that only one of the nine ATMs was dispensing new notes with a withdrawal limit of N20,000. Due to the long queues, a woman accused of using multiple ATM cards began selling new notes to those unwilling to wait. She charged N1,000 for every N10,000 and N5,000 for N100,000. Similarly, Point of Sale (PoS) operators in Ogun and Lagos reported purchasing new notes from both bankers and black market operators, often at inflated prices. One PoS operator at Berger bus stop stated, “We cannot continue to charge our customers the previous rate. Some bankers sell the new notes to us, and we often get them from the black market. For every N100,000 in new notes we collect, there is a charge of N5,000, with some operators charging as much as N10,000 for N80,000.”
In Abuja, one correspondent paid N1,000 to withdraw N10,000 in new notes from a PoS agent, while many bank customers faced long queues at ATMs across the Federal Capital Territory. This situation was exacerbated by a ban on over-the-counter withdrawals of new notes. Long lines were reported at branches of Guaranty Trust Bank, Zenith Bank, Stanbic IBTC, Sterling Bank, First City Monument Bank, and First Bank. Although some ATMs dispensed new notes, many customers were turned away at the gates of banks. In the Bwari Area Council, PoS agents charged N500 for N5,000 withdrawals and N1,000 for N10,000, while those in the Wuye area demanded N1,500 for N15,000.
In Kwara State, PoS operators in Ilorin imposed high charges, reportedly a flat 10 percent on every transaction, due to the scarcity of new naira notes. The situation was worsened by banks refusing over-the-counter withdrawals, directing customers to ATMs with a withdrawal limit of N20,000. In Delta State, residents expressed frustration as ATMs dispensed only N50 denominations, limiting withdrawals to N2,000. In Edo State, many ATMs were non-operational, and customers faced long waits, hoping for the new notes to be loaded.
In Kano, despite assurances from the Central Bank of Nigeria (CBN) about the availability of new notes, long queues persisted at ATMs. Many machines were out of order, and customers expressed concern over the CBN’s ability to meet the February 10 deadline for swapping old notes. A customer remarked, “The commercial banks cannot perform miracles unless the CBN gives them adequate notes.”
In Bauchi State, a food vendor and PoS agent, Mary Adeyemi, recounted her struggles to obtain new notes, revealing that her daughter had waited all day at the bank without success. She ultimately had to pay N5,000 in charges to withdraw old notes from the market. Victor Olojo, the National President of the Association of Mobile Money and Bank Agents in Nigeria, urged the CBN to circulate new currencies more effectively to combat racketeering. He emphasized that scarcity leads to price hikes and that mobile money agents should have better access to funds.
Olojo denied any collusion between mobile money agents and bank staff, stating that accredited agents should be prioritized in banks. He criticized the CBN’s limits on withdrawals, which forced operators to seek alternative means to acquire cash. He noted, “There are pictures and videos of Nigerians struggling in queues, which is a clear indication of a faulty system.” Meanwhile, the Department of State Services announced the arrest of several individuals involved in the illegal sale of new naira notes, implicating some commercial bank officials in the process. The DSS urged the public to report any information related to these activities to the appropriate authorities.
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