The sale of new naira notes in the open market and motor parks appears to be on the increase with ‘dealers’ charging as much as 20 per cent commission to change used notes to crispy mint ones.

This is happening despite the subsisting legislation banning such activity in Nigeria.

National Mirror investigations revealed that the sale of freshly minted notes is largely driven by the culture of “spraying” at social functions in which relatives, friends and well-wishers shower celebrants and musicians with naira notes as a mark of solidarity and to underline their status as well-to-do.

This practice has long been classified as “abuse” of the national currency but sustains a micro-industry of its own run by unscrupulous bank officials who sell the notes to dealers at a 10 per cent premium of face value.

The dealers in turn sell at an extra 10 per cent to willing patrons. For example, a bundle of N100 notes with face value of N10,000 is sold for N12,000 in used notes.

Alternatively, a patron will get N8,000 in mint notes for N10,000 used notes. Investigations also showed that the illegal trade is being carried out in the public, even in the presence of police officers at event centres, hotels and motor parks where people travelling to attend social functions “load” themselves with mint notes ready for spraying.

Our correspondent observed that currency notes favoured by patrons were the lower denominations such as N10, N20, N50, N100 and N200, depending on the spending power.

As a result of the illicit trade, bank customers hardly get paid in new notes even if they make such specific demands. Some hawkers selling new naira notes to guests attending a wedding reception around St. Leo’s Catholic Church, Toyin Street, Ikeja, Lagos, penultimate Saturday told our correspondent that they got the new naira notes from the banks through a special arrangement.

“This is my business so I know where to get my goods. I have somebody that assists me to change my money to new notes,” one hawkers said on inquiry by our correspondent.

http://nationalmirroronline.net/new/illicit-sale-of-new-naira-notes-thrives-despite-cbn-ban/