The Central Bank of Nigeria, CBN, policies on bank deposits and loans appears to have inspired a culture of currency hoarding by Nigeria’s big spenders and merchants. Besides, the bank Verification number, BVN, and the Treasury Single Account, TSA, have resulted in currency hoarding. Many large transactions in high-brow areas are conducted in cash, resulting in what is being described in some quarters as raw cash deal.
Investigations by this magazine show that many contracts in highbrow Ikoyi and Lekki are transacted in Cash. In fact, many buildings house unorthodox warehouses of buried cash, the magazine was told. “If you have money, try and buy properties in Lekki”, the Magazine was told. “Chances are that if the owners of some properties die, whoever buys such properties will be sitting on gold mines. It will not be surprising if people dig out oodles of dollars when laying the foundation of buildings in the new properties they just bought. Nobody is interested in banking anymore”.
The EFCC has a standing rule with banks to the effect that any cash lodgment of half a million Naira and above must be reported to the anti-graft Agency. For any sudden amount running into millions, the bank is required to send the customer with a note to EFCC to explain the source of sudden wealth.
It has been found out that many contracts are paid for in cash. “Hilux pick up vans are used to transport cash and the client simply counts the cash and takes for any job being executed. Most of the jobs are construction jobs, and the cost runs into hundreds of millions of Naira- or millions of dollars”, a source had told the magazine over the weekend.
Recently, the CBN has given orders that both deposits and withdrawals above half a million will attract charges, and Banks are being compelled to give loans to Nigerians, with financial penalties for defaulting Banks. “A friend narrated how he could not withdraw from his account because of a financial transaction that deposited thirty five million in his account. Ordinary thirty five million oo! He was referred to the Bank Manager who insists he must go to EFCC to clarify himself”, says a source.
