As Nigeria grapples with an acute cash scarcity, members of the National Union of Road Transport Workers (NURTW), Road Transport Employers Association of Nigeria (RTEAN), and street-level operatives known as “Agberos” have turned the crisis into a lucrative enterprise.
Blueprint findings reveal these groups are selling cash at inflated rates to Point-of-Sale (PoS) operators desperate to maintain their businesses.
These groups allegedly obtain cash from various sources, including the daily revenues generated from transporters, extorted from hawkers, street traders, and sell it at inflated rates to PoS operators who are desperate to maintain their businesses.
A PoS operator in Lagos, who chose anonymity, lamented the situation: “We buy cash from middlemen because banks can’t supply enough. They sell N10,000 for N13,000 or more. It’s either we buy or close shop because people need cash, and this is our livelihood.”
Financial experts suggest some commercial banks may be indirectly complicit in the crisis.
Mrs. Yetunde Ibrahim, a financial analyst, stated, “There are allegations that certain bank officials prioritize cash distribution to influential groups or individuals who resell it at a premium. This undermines equitable distribution and exacerbates public frustration.”
The Central Bank of Nigeria (CBN) had recently set a daily cash-out limit of N100,000 per customer for PoS agents, aiming to promote cashless transactions and ensure equitable cash distribution.
The apex bank also mandated banks to load their ATMs and warned of sanctions for non-compliance. Despite these measures, the scarcity persists, with Christmas celebrations just days away.
The cash scarcity has far-reaching implications. Businesses, especially those in rural areas, are struggling to operate. Daily wage earners and small-scale traders, who rely heavily on cash transactions, are bearing the brunt of the crisis.
Fasasi Sharafadeen, President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), acknowledges the existence of these informal cash markets, he however emphasizes that PoS agents are not the root cause of the cash scarcity but are adapting to the situation to continue providing services.
