She held her bag close to her chest as though letting go would expose its contents.

Her head was wrapped with a black scarf and her gown swept the ground as it danced to the sound of the wind. With a point-of-sale machine held tight, she sat under an umbrella, enjoying the shelter it provided at the Berger Bus Stop, in the Ojodu area of Lagos State. Looking over her head, she asked what ‘services’ the reporter wanted.

But it was a disguise. The middle-aged woman whom many persons in the area referred to as Madam Cash was in the business of selling new naira notes to partygoers and exchanging dollars for naira.

A student of the Lagos State University, Ojo, Taimiyu (surname withheld), who had patronised her, told Sunday PUNCH how Madam Cash ran her business.

“She is well-known in the area. Just mention Madam Cash and they will lead you to her. Even in this period of cash scarcity, she always has cash, mostly new notes, which is where she got her name.

“It is sometimes difficult to get her to sell money to you without a referral but if you mention a big amount, she would oblige. It is her business.

“Even one of my uncles always comes here whenever we want to go to parties and he needs to ‘spray’ money on the hosts.”

Meeting Madam Cash for business without a previous encounter with her was difficult. After searching the Berger area down to the Grammar School and Shonibare axis, no one seemed to know who Sunday PUNCH was referring to.

However, a lady who sold food by the bus stop pointed at the direction of a PoS shop right opposite a shopping plaza where Madam Cash operated.

“She has many stands o, but that is the one I know. Na PoS she dey do, and she dey give new money, shine-shine money,” the food vendor said.

When our correspondent got to the stand, a young girl said that withdrawing N10,000 would attract N400 charges for ‘regular’ (old) notes, but N1,000 for news notes.

Asked if one could exchange old notes for new (redesigned) notes, she said, “Of course, but it is my madam that does that one, even dollars.”

She offered a seat and asked how much our correspondent would love to exchange.

“For N100,000, the charges would be N20,000. For N200,000, the charges would be N40,000. But, if you want like N500,000, we can collect N50,000,” she said, scratching her head in a bid to be sure that she was giving the right prices.

Our correspondent feigned a phone call and told her that he would return the next day to perform the transaction.

Meeting Madam Cash

A regular woman with a cross bag and a headgear sat on a bench when Sunday PUNCH visited Madam Cash’s PoS stand the next day. She wore a deep frown and muttered some words in Yoruba when our correspondent greeted her. Nothing gave her away as the owner of a ‘cash selling’ business.

She was seen dishing out instructions to her workers about new ‘prices’ for her services, stressing that the bank workers who sold cash had hiked up their charges.

She also instructed one of the sales girls to close the sales for the day, lock up the shop and join her in search of cash to be sold.

When our correspondent told her that he would love to purchase some N50,000 worth of new notes, she said, “You get the money cash here? Na N20,000 you go pay o. Money scarce.”

“Na only PoS we dey do through transfer. You go withdraw normal money then we go change am for you. I no sure say I even get reach N50,000.

“You fit come back tomorrow. Na money we dey find to use hold ground for this weekend.”

As the conversation between her and our correspondent went on, a man in a black Toyota Tundra stopped by and hailed her. She hurried her salesperson and they both left in the vehicle.

A fruit seller in the area, identified as Umar, said Madam Cash was popular during the lockdown occasioned by the COVID-19 pandemic, “Even during corona (COVID-19), na she dey supply the area,” he said.

However, a PoS operator in the area referred our correspondent to the Yaba area of the state to get currency hawkers who would easily sell new naira to any willing buyer, since Madam Cash did not seem interested in reporter’s offer.

Sunday PUNCH learnt that the Yaba bus park was a regular spot for money hawkers.

When our correspondent visited the park, a bus driver who did not want to be named, confirmed that the trade thrived in the area, but noted that it happened in a covert way.

“Someone has to refer you to the traders here; they don’t just sit down waiting for you to come. If you don’t come from a trusted source, they will think you work for the Economic and Financial Crimes Commission or the Independent Corrupt Practice and Other Offences Commission.

“But, you will meet them at parties; there, they don’t hide their trade.”

Several video evidence online has shown the open buying and selling of wads of new naira notes amid the cash scarcity in the country.

Recently, a popular comedian who doubles as the Edo State President of the Performing Musicians Association of Nigeria, Maleke, said he visited a bank where his account was lodged for three days consecutively in December 2023 but was told that there was no cash.

In a viral video sighted by our correspondent, Maleke said, “I lost my father during this festive period. Everyone is celebrating, I’m celebrating too; I thank God for life.

“In the course of planning for the burial of my father, I went to the bank to get cash to make payments easy for me. I went to the bank for three consecutive days before and after Christmas but they kept telling me they had no cash.”

Confused, Maleke said he opted to visit money hawkers, also known as ‘currency changers’ and was shocked to find out that they had an abundance of new naira notes in their possession.

Expressing his rage, he said, “I find it shocking that there is no cash in the bank but money changers have cash to sell. I bought N20,000 for N35,000.

“This is N250, 000 cash and I bought it for N450,000. It is bizarre. The Governor of the Central Bank of Nigeria, Yemi Cardoso, should help us. I wonder how a poor man will put his money in the bank but cannot collect it when he needs to.”

Also, an accountant who recently hosted a party in his hometown in Owerri, Imo State, Cosmos Ndubuisi, told our correspondent that he bought cash from money vendors in the Owerri metropolis.

He said, “It is shameful to admit but as of December 19 (2023), when I went to the bank, they told me that there was no cash. I kept going there every day till they closed the bank for Christmas.

“My event was on December 26 and I needed cash. There was nothing I could do but visit one of the money vendors and was given new notes.

“I bought N200,000 for N270,000, and the vendor even said she had given me a discounted rate. It is a thriving trade in Owerri; there were over four vendors who approached me to sell the notes to me, and they all had new notes.

“I am still wondering how they got that many new notes yet the banks do not even have old ones to give customers. Is it not madness?”

The News Agency of Nigeria reported in December 2023 how money hawkers at the Dadi Motor Park, Sabon Gari-Zaria, in Kaduna State, openly displayed large wads of different denominations of the notes to prospective buyers.

A check revealed that a bundle of N200 notes sold for N30,000, N500 notes sold for N70,000, N1,000 notes were sold at N130,000, and N100 was sold at N16,000.

A cash hawker, Mohammed Bello, told NAN that he paid between N70,000 and N130,000 to banks to obtain new N500,000 notes, depending on the denominations of the notes.

However, Bello declined to disclose the specific sources of the money and the encumbrances involved.

A resident of Gozaki village in the Kafur Local Government Area of Katsina State, Thomas Damina, who patronised the vendors, confirmed to NAN that he bought the new N20,000 of N1,000 notes at N25,000.

He said he was forced to purchase the money at an exorbitant price to enable him to settle the labourers working on his dry-season farm.

Also, our correspondent gathered that in Ibadan, Oyo State, the sale of new naira notes by hawkers thrived.

A financial expert, Moses Ogun, said, “You will see those money hawkers openly plying their trade in markets along Gate and Iwo Road in Ibadan. They don’t hide it.

“They carry it like they are selling something legitimate. It is so bad that the notes are scarce in banks but are everywhere in the hands of money sellers.”

Sunday PUNCH Also learnt that Kola Daisi Centre, Idi Ape, T. O. Ogunlesi Hall, University College Hospital, and International Conference Centre all in the University of Ibadan are areas where money hawkers operate freely.

Speaking with our correspondent, a source in the area said, “The chief security officers of the different places have a mechanism in place that allows anyone to get a licence to operate, which is not a right, and grants permission for anyone to engage in informal business on the premises during social events.”

According to the source, money vendors had a sort of arrangement that gave some sites to a specific group, but they could call in reinforcements when demand exceeded supply.

“Private security guards are used by the security workers stationed at those event centres to guard the entrances and grant access. They don’t participate in access control; they are essentially merely the muscle for these kinds of activities,” the source added.

Stance of the law

However, the CBN in a 2021 press release warned Nigerians against the practice of ‘spraying’ and buying naira notes at events.

“For the avoidance of doubt, Section 21(3) of the Central Bank of Nigeria Act 2007 (As amended) stipulates that spraying of, dancing or matching on the naira or any note issued by the bank during social occasions or otherwise shall constitute an abuse and defacing of the naira or such note and shall be punishable under the law by fines or imprisonment or both,” the statement signed by the then CBN spokesperson, Osita Nwanisobi, read in part.

A lawyer, Onuoha Okechukwu, speaking on what constituted abuse of the naira, said, “It is against the law to sell currency banknotes. A person who tampers with the naira note or coin is guilty of an offence, punishable by law (CBN Act Section 21). It is against the law to reject the Naira (Section 20 subsection 5).”

Fresh naira scarcity resurfaces

Despite recent assurances by the Central Bank of Nigeria that there was enough naira in circulation, reports of scarcity emerged across the country in November 2023 have persisted.

Many residents confirmed the scarcity in some parts of Abuja, as well as Lagos, Kano, Kwara, Gombe, Edo, Sokoto, and Ekiti states to our correspondent.

In Abuja, a tech expert, Olanrewaju Ade, said it took him four days of visiting a commercial bank where he operated his account before he could withdraw N50,000 for the Christmas celebration.

“I had to go there every day for four days before they managed to squeeze out N50,000 for me. Some people left the bank empty-handed that day like I did three days earlier.

“It is so bad. If you see the notes, they look bad. I wonder where this scarcity is coming from,” he added.

A mother and civil servant also based in Abuja, who did not want to be named, said she had to pay exorbitant charges to PoS operators before she could get cash for her New Year shopping.

“I paid N400 to withdraw N10,000 on Thursday, and I cannot understand why. Is it that the entire money that was printed last year has all disappeared, or the old ones that were in circulation developed wings and flew away? It is troubling for me. I don’t know what to do. I am tired.

“If you go to the ATMs, you will not get any cash. The one (bank) that agrees to pay you will ration the cash, and it is affecting my business,” she said.

A student In Ogun State, Dayo Alimi, said he struggled to access cash for his daily transactions, adding that mobile apps were not reliable as they could break down.

“PoS operators are also struggling. They don’t have the cash to even give with the exorbitant charges they have added; some don’t give more than N5,000. I don’t know why cash is scarce in Nigeria. It should not be so,” she added.

Also, many PoS operators, who spoke to our correspondent, lamented that it was becoming a challenge to access cash for their businesses.

One of them in the Ikosi area of Ketu, Kosofe Local Government of Lagos State, Mrs Munirin Abosede, said her business had almost crumbled, as she no longer had access to as much cash as she used to have.

“The banks I use said they couldn’t give me more than N35,000. I don’t know what N35,000 will do for me in this line of business when just one transaction can run into hundreds of thousands of naira.

“A few days ago, I was so frustrated that I closed my shop. The market women who give me cash for a small fee had hiked up their fees, and most of them also lamented that they did not have cash to give.

“The festive season was a really bad one for me; I lost a lot of customers. The few who patronised me refused to pay the increased charges. They don’t know how we suffer to get the money,” she added.

NLC laments hardship

While reacting to the scarcity and its impact on the lives of poor Nigerians, the Nigeria Labour Congress, asked the Federal Government and the CBN to find immediate solutions to address the sufferings of the masses.

The NLC said the CBN and Federal Government’s disregard for warnings meant they were deliberately inciting Nigerians against the system and constituted authority. It also described the scarcity as shameful, saying excuses would no longer suffice.

The President of the NLC, Joe Ajaero, who handed down the warning in Abuja at a press briefing, said, “The Nigeria Labour Congress is deeply concerned about the recent cash crunch that has gripped the Nigerian economy, particularly as the nation approaches the festive season.

“This economic challenge has far-reaching implications for the citizens of our great nation, and urgent steps must be taken to address this issue to prevent further hardship for the already suffering Nigerian populace.

“Fresh in the minds of every Nigerian is the excruciating conditions that we were all subjected to as a result of the last cash crunch earlier this year (in 2023), orchestrated by the ill-conceived and ill-implemented currency redesign policy of the immediate past government.

“The sorrow that the botched exercise foisted on us is not what Nigerians wish to witness again in one year. This time, there is no discernible reason by the CBN nor any explanation from the government for why Nigerians should be subjected to this level of suffering once again in 2023.”

According to Ajaero, if the CBN claimed that those with ill-gotten wealth were stashing cash in their houses to avoid detection, it would be a heavy indictment on the government’s anti-corruption agenda.

Ajaero noted that the unavailability of cash had led to increased difficulties in meeting daily needs, exacerbating the economic challenges faced by ordinary citizens.

Cash available – CBN

But the CBN had, in a circular on December 21, 2023, by the Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, titled, “CBN Cautions Banks, PoS Operators Over Availability of The Naira, Provides Digital Feedback Box To Address Complaints,” stated that there was cash at its stables and warned that relevant sanctions would be meted out to PoS operators and banks colluding to disrupt the seamless circulation of the naira.

“The attention of the Central Bank of Nigeria has been drawn to alleged cases of collusion between some Deposit Money Banks and Point-of-Sale operators affecting the availability of cash and disrupting the seamless circulation of the naira.

“The CBN frowns at such inappropriate actions by certain individuals and is investigating the reported cases capable of undermining the smooth running of the economy.

“The CBN has, therefore, warned banks and PoS operators to desist from such activities as relevant sanctions shall be meted out to those found wanting,” it added.

Money hawkers’ cash cycle revealed

The Nigerian Security Printing and Minting Company is the only authorised banknote printer in Nigeria either through printing by itself or through contracts with third party printers.

The company works In conjunction with the CBN to determine when to print new notes and in which denominations.

The CBN does this through the Currency and Branch Operations Department which is responsible for currency management, distribution and supply, processing, reissue, and disposal of banknotes and coins.

The CBN receives the printed notes centrally and distributes them to its branches in the 36 States of the federation and the Federal Capital Territory by air and road.

In its capacity as the deposit money banks’ banker, the CBN keeps the extra cash in its vaults, and banks visit it every day to remove their holdings to fulfil their depositor commitments.

When state branches make requests for cash, the zonal cash management centre heads of the various DMBs gather the requests, look first to branches with excess cash, and when this isn’t enough, they source from other banks that don’t want to take their cash to the CBN to avoid associated fees.

The bank communicates with the CBN to find out which denominations of new notes are available for customers.

After all the formalities are ironed out, the bank credits the CBN with the amount that needs to be collected and arranges for pick-up together with any planned withdrawals.

However, the activities of money hawkers affect this system.

A business development manager of a tier-one commercial bank said some hawkers connived with corrupt bank officials to get new notes before they were even registered in the bank’s coffers.

“Sometimes, it is right from the vans. The monies would be exchanged for old notes and given to the hawkers at exorbitant prices. We have dismissed several of our staff members on such grounds, but it is not everything that we will make public because even the apex bank itself also has some questions to answer,” the source added.

Another source in a microfinance bank in Ogun State who said she knew some officials of her bank involved in the trade, added that the illegal trade was not limited to the sale of new notes.

“Even old notes are sold for a fee during scarcity. It is things like this that cause artificial scarcity and put Nigerians in jeopardy but the loophole is wide.

“Nigeria has a craze for ‘spraying’ new notes so the demand is always high. Until we curb that problem, we are far from finding a lasting solution,” the source added.

The source further noted that the binders holding the bundles of naira notes that were received from the ‘back door’ were not stamped and did not have bank names printed on them, to avoid suspicions and traces.

“The lack of stamps and bank names on the binders of the bundles infers that those notes were not issued in a banking hall nor collected at an ATM. The package in polyethylene makes it look like they are directly from the official source, which is also not impossible,” she added.

Another bank worker based in Lagos, who chose to be identified only as Monday, said the way naira merchants plied their trade was like a cartel.

“Some people reap bountifully from the illegal trade of these currency merchants. Imagine making N10,000 from every wad of new notes of N100,000. That is more than a million naira for just N10m. What they charge is even higher,” Monday added.

He also told Sunday PUNCH that some customers usually approached their account officers or those known to them in the banks to request new notes whenever the need arose and promised to give their accomplices a commission, after completing the illegal transactions.

Our correspondent also gathered from several sources that the cost of buying the commodity had increased.

For instance, a pack of new N200 notes worth N20,000 is sold for N8,000, the same as a pack of N100 notes.

A pack of N1,000 worth N20,000 is sold for N5,000 as it is in low demand. From a pack of N200 notes worth N100,000, a merchant could make as much as N40,000 in profit.

On a busy party weekend, a connected money changer can make up to N500,000 in profits with little operational costs.

Also, our correspondent gathered that CMC officers are the epicentre of how cash is distributed to branches of a commercial bank.

Serving as the liaison between the CBN and DMBs, they are in charge of collecting cash from branches to prevent them from going over their daily cash-on-premises limit, which would require them to pay for extra insurance coverage for the night, something they would prefer to avoid.

Additionally, they make sure the branches have enough cash on hand to pay their clients’ bills and prevent rumors of a liquidity problem, which may spark a bank branch run.

To guarantee the safety and security of the money and those transporting it, members of the CMC operate the continuous bullion van movements that are visible in cities, collaborating with the Nigeria Police.

Counterfeit notes in circulation – CBN

However, the current cash scarcity, which experts see as artificial has also promoted the distribution of fake naira notes.

The CBN In a circular, titled, “Beware of Counterfeit Naira Banknotes in Circulation”, published on the CBN website on December 8, 2023, stated that some criminals were circulating counterfeit notes as the newly-redesigned naira notes.

The circular read In part, “For the avoidance of doubt, Section 20(4) of the CBN Act (2007) as amended, states that, ‘It shall be an offence punishable by a term of imprisonment of not less than five years for any person to falsify, make or counterfeit any bank note or coin issued by the Bank which is legal tender in Nigeria.”

But a financial analyst, Oluwaseun Aleshinloye, said it was no news that racketeering of any sort ensnared the economy, alleging that some bank executives profited from selling new naira notes to hawkers.

“There is no news that the perpetration of these illegal acts by both the sellers and the buyers is because of Nigerians defiance toward Section 21, subsection 3 and 4 of the CBN Act 2007,” he added.

Another financial expert, Benjamin Uduak, told Saturday PUNCH that the CBN would need to sustain the culture of withdrawing old notes in circulation and replacing them with new ones.

He added, “Enforcement organisations should thus begin directing banks to provide fresh notes to regular bank customers through all methods possible. As a result, there won’t be a need for money hawkers’ services, which will reduce the lack of fresh messages in society.” (Sunday PUNCH)

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