Business
Rich Nigerians Besiege Banks With Bales Of Cash
Just days after the Central Bank of Nigeria (CBN) announced the redesign of the N1,000, N500 and N200 notes, with a directive that the current notes be remitted to the commercial banks, wealthy individuals and organisations with huge cash stashed away have begun depositing them.
Reports from the operations department of many commercial banks have it that though there is yet to be any rush by customers, there was a gradual increase in the volume of cash and amounts being remitted by customers.
The Governor of the CBN, Mr Godwin Emefiele, while announcing the issuance of the new naira notes on October 26, said bank customers should start paying their current notes to enable them to withdraw the new bank notes once circulation begins on December 15, 2022.
Emefiele said the apex bank had become concerned over some daunting challenges in the management of the existing bank notes in circulation, especially those outside the banking system, noting that such portend some consequences for the integrity of the CBN and the country.
Among the challenges that informed the decision, he lamented, was the “significant hoarding” of the banknotes in which case N2.73tn out of the N3.23tn currency in circulation as of September 2022 was outside the vaults of the commercial banks across the country.
He also cited the worsening shortage of clean and fit banknotes; increasing ease and risk of counterfeiting evidenced by several security reports and compliance with global standard to circulate new legal tender every five to eight years.
He noted further that the naira redesign would help to rein in the currency outside the banking system and make its monetary policies more efficacious, deepen its cashless economy drive and minimise incidents of terrorism and kidnapping as the access to large sums used for ransom payment.
“On the basis of these trends, problems, and facts set out above, and in line with provisions of Sections 2(b), section 18(a) , and section 19, Subsections a and b of the CBN Act 2007, the Management of the CBN has sought and obtained the approval of President Muhammadu Buhari to redesign, produce, release and circulate new series of banknotes at N200, N500, and N1,000 levels.
“In line with this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022 after its launch by President Muhammadu Buhari.
“The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be legal tender”, he noted.
Meanwhile, interactions with many bank staff have indicated that individuals have begun depositing huge cash sums stashed away with the commercial banks.
A top banker with one of the first generation banks, who spoke on condition of anonymity, said there was a gradual increase in the sums of money being deposited by some customers.
“We have seen an increase in the amount being brought to some of our branches by some customers”, the source said.
On the highest amount an individual had remitted so far, the source, who heads a branch of the bank in Oshodi, Lagos, said, “The amounts vary, but we have seen people bring between N5m and N20m cash. It’s only rich customers that can have huge sums stashed away. The poor live on daily income and can hardly have enough to save”.
He said it was easy to identify the money stashed away for a long time because of the smell, the dates on them and other elements he refused to disclose.
“There are ways to identify them, but I don’t want to go into that because the focus of the CBN policy is to rein in the volume of cash in circulation. The regulators would deal with the rest”, he stated.
The branch manager of another first generation bank in Ikoyi area of Lagos confirmed to newsmen that there was already a rise in the amount of cash being deposited by some customers.
She said, “The normal deposit by average income earners and businesses continues, but some customers have been coming with huge sums to deposit. We have seen some persons bring N2m cash and there have been higher and lesser amounts respectively from some other branches”.
Meanwhile, a senior staff at the headquarters of another first generation bank noted that feedback from some of their branches showed that some customers brought in billions, some in millions and some in hundreds of thousands.
The source said, “When the redesign of the naira was announced, the CBN asked all the banks to report the amount in their vault per day so they could monitor the remittances across board.
“The way it works is that branches route that information through their respective zones and the zones supply the information to the headquarters.
“We have to protect the customers, even if you suspect the possible source of such funds. The information from some of our branches indicate that in the last few days, specifically since October 26 when the CBN made the announcement, there have been individuals who brought in billions while some came to deposit millions.
“From what the CBN Governor said in his briefing, he said about 85 per cent of the cash in circulation was outside the bank vaults”.
In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.
Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.
The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.
Nkpemenyie Mcdominic, Lagos