In Nigeria’s bustling city centers, particularly in Lagos, mobile money agents have taken center stage, providing cash services that ATMs can no longer reliably supply. The Central Bank of Nigeria (CBN) initially promoted these agents to boost financial inclusion, but they now seem to be disrupting the banking system. As ATMs across Nigeria run out of cash, customers are increasingly turning to the over two million mobile agents scattered nationwide.
This system has grown so rapidly that an estimated 93% of Nigeria’s cash sits outside of banks, making it difficult for the CBN to implement monetary policies. With a limited number of ATMs and increasing unemployment, mobile agents now dominate the cash economy, buying naira from cash-heavy businesses and reselling it at higher rates than traditional banks.
Though agents provide essential services, especially to underserved populations, their proliferation has further loosened the CBN’s grip on the financial system. Despite the bank’s recent efforts to replenish ATMs, many branches face cash shortages. With fees rising ahead of the holiday season, regulators are racing to regain control and prevent the further commodification of naira notes. Still, for many Nigerians, agents remain a crucial financial lifeline in an economy increasingly driven by cash transactions outside the formal banking system.
