Banks, New Naira Notes and ‘Owambe’ Parties

The habit has been with Nigerians for decades. It is not about to change soon. However, in 2007, financialtechnology magazine in its maiden edition published a two-page story on the illegal activities of some bank executives who profit from selling new naira notes to bank customers.

Titled ‘Owambe ATM: Naira hawkers besiege ATMs for crispy naira notes”, the story chronicled how some naira hawkers relied on the automated teller machines [ATMs] for their ration of new naira notes.

Since the ATM did not satisfy their desire, the hawkers shifted their search to the banking halls.

“The currency hawkers would visit the banks with bagful of dirty naira notes in exchange for new ones. The bank officials operating unofficially would collect an agreed service charge from the hawkers”.

The story explained that these bank officials usually charge about N200 on N1000.

Meanwhile, on its front page with the headline, “Banks in brisk business with new naira notes, reject old bills,” the Guardian newspaper of April 14, 2016 exposed the activities of some of these dubious bank executives. The story reads, inter alia:

“By management directive or individual discretion, banks in the country have gradually become an outlet for new notes to currency hawkers, who in turn make brisk business.

The sale of the clean bills for older ones currently goes for as high as 20 per cent of the value being exchanged, that is, N1000 old notes go for N800 new ones”.

However, the CBN Act 2007, Section 21, sub-section 3 and 4, said forbids such. “For the avoidance of doubt, spraying of, dancing or marching on the Naira or any note issued by the Bank (CBN) during social occasions or otherwise howsoever, shall constitute an abuse and defacing of the Naira or such note and shall be punishable under Sub-section (1) of this section”.

About a decade after financialtechnology’s story, the law enforcement agents have not apprehended or punished any Nigerian for “spraying, dancing, or marching on the naira or any note issued by the Central Bank of Nigeria [CBN] during social occasions”. The reason is obvious.

At a typical owambe party where serving politicians, monarchs, business moguls and media magnate are present with uniform traditional attire. The party is in full swing. Food and choice wines are part of the menu. The celebrant is a cousin to one of the past leaders of this country. On the bandstand is a prominent praise singer and his back up boys.

The celebrant and his wife step out to dance. The chairman of the occasion, a senior monarch from the south west, dips a hand into his flowing robe and brings out a wad of new naira notes, and goes ahead to plastered the couple and the musician with the notes.

Other notable personalities join in the show-off game. In addition, new naira notes running into several thousands are flying in the air. The couple, friends, and families would dance around and march the notes. Some of the women armed with polythene bags stoop low and fill the bags with the notes.       

That is our way of showing off, and it is not about to change soon. This penchant to show-off at parties like this has been with us for decades.

However, the habit has given birth to the need to search for new naira notes at all cost. The bankers and personalities painted above are in the business together. Who would arrest the monarch and his friends for spraying new naira notes at different owambe parties?

Well, there is an answer in the question. However, there is no other way the new naira notes get to the currency hawkers except through the banks.

The CBN does not deal with individuals. The arrangement from the banks could be “management decision or individual interest”. That explains how and why Nigerians get new naira notes in commercial quantity to hawk in the street and to spray at owambe parties, even a decade after financialtechnology first published this story.