The Nigerian banking sector is facing a crisis of trust and transparency due to an unusual pattern of cash dispensation. There is a growing trend in the complex web of issues surrounding the scarcity of cash at banks’ Automated Teller Machines (ATMs) and banking hall tellers, juxtaposed with street vendors offering cash at a premium through Point of Sale (POoS) machines, which is particularly prevalent in the Lagos area.
Since the Buhari-Emefiele Central Bank of Nigeria Naira redesign sometime in 2023, leading to scarcity of the domestic currency, the Naira, a new and unethical trend of the proliferation of POS has emerged, leaving cash-trapped bank customers with no other choice than to patronize these streets cash vendors and hawkers.
It is crucial to investigate the allegations of collusion between top bank officials and these street cash hawkers, leading to extortion and economic sabotage. It calls for better monitoring and accountability from the Central Bank of Nigeria and the top managements of some Nigerian banks, who are fingered in this malpractice to address this malfeasance and restore public trust in the banking system.
This unwholesome practice has put a big dent on the financial landscape in Nigeria, which has been marred by the troubling trend in recent years – a pattern of cash scarcity at traditional banking channels, such as ATMs and tellers, while street vendors equipped with POS machines offer cash at a premium. This phenomenon continues to raise serious concerns about the integrity of the banking system and the role of some top bank officials in perpetuating this practice. The allegations of collusion between bank executives and street hawkers have cast a shadow of doubt over the transparency and accountability of Nigeria’s financial institutions.
The scarcity of cash at bank ATMs and tellers has become a common experience for many Nigerians, leading to frustration and inconvenience. Customers often find themselves unable to access their funds through traditional banking channels, forcing them to turn to street vendors who charge fees for cash withdrawals. This artificial scarcity of cash raises questions about the motives behind such practices and points towards a systemic issue within the banking sector.
The alleged collusion between top bank officials and street hawkers is a serious allegation that cannot be overlooked. The brazen display of signs such as “POS Available” by street vendors suggests the impunity and a coordinated effort to lure cash-trapped customers and exploit their need for cash. This unholy alliance between bank executives and street hawkers not only undermines the trust and confidence of the public but also erodes the credibility of Nigeria’s financial system, and further exacerbates the frustrations of banks customers.
Furthermore, the circulation of dirty and worn-out notes by banks, contrasted with the availability of crisp new notes from street hawkers lurking around and displaying their wares during celebrations, such as wedding receptions, birthdays and other parties, highlights a disparity in currency management practices. The deliberate withholding of clean notes by banks, only to be distributed at a premium by street vendors, is a clear indication of economic sabotage and profiteering at the expense of the general public. This unethical behavior not only harms the economy but also perpetuates a culture of indolence, corruption and impunity.
It is incumbent upon the Central Bank of Nigeria and the top managements of Nigerian banks to be held accountable for this malfeasance in currency management. The failure to address these issues not only undermines the credibility of the financial sector but also jeopardizes the financial security of customers. The security agencies must take immediate and decisive action to investigate and prosecute those involved in this extortion scheme, ensuring that justice is served and deterrence is set for future wrongdoings.
In conclusion, there is no other country that readily comes to mind, where such practice occurs. This unusual pattern of restricted cash dispensation by some Nigerian banks, characterized by scarcity at traditional channels and the availability of cash through street vendors at a premium, is a troubling phenomenon that demands immediate attention. The allegations of collusion between top bank officials and street hawkers raise serious concerns about the integrity and transparency of Nigeria’s banking system. It is essential for the Central Bank of Nigeria and the top managements of Nigerian banks to take proactive measures to address this malfeasance and restore public trust in the financial sector.
The security agencies must play a crucial role in investigating and prosecuting those involved in this extortion scheme, sending a clear message that such unethical practices will not be tolerated. It is time for accountability and transparency to prevail in Nigeria’s financial institutions, ensuring that the interests of the public are protected and the integrity of the banking system is upheld. Only through concerted efforts and decisive actions can Nigeria overcome this crisis and build a more resilient and trustworthy financial sector for the future.
NB: Sonny Iroche is a 2022/2023 Senior Academic Fellow at the African Studies Centre, University of Oxford. UK and currently in Post Graduate Studies at the Saïd Business School, University of Oxford. UK.
He can be reached on Email: siiroche@genr-ai.com
X (Twitter): @IrocheSonny
LinkedIn: http://linkedin.com/in/sonnyiroche
