Financial Repression and the Paradox of "Buying Money": A Critical Analysis of Transactional Inflation and Social Hardship in Nigeria

This paper examines Nigeria’s emerging paradox of “money-to-buy-money” a situation where citizens incur additional costs simply to access or withdraw their own funds. Triggered by the Central Bank of Nigeria’s 2022/2023 naira redesign and cash scarcity, this systemic challenge has since been normalized through persistent Point-of-Sale (POS) charges, ATM fees, and interbank transfer deductions. Unlike traditional inflation, which reflects rising prices of goods and services, this phenomenon represents a unique form of transactional cost inflation and financial repression that distorts monetary access itself. By interrogating the roots and consequences of this distortion, the paper argues that the Nigerian case signals a deeper structural failure in monetary governance, one that erodes public trust in financial institutions, worsens poverty, fuels migration, and even triggers health and social crises. Using perspectives from development and management sciences, the study situates Nigeria’s experience within broader debates on financial justice, inclusive monetary policy, and the state’s responsibility in safeguarding citizens’ economic rights. The paper ultimately calls for urgent reforms in transaction systems, a restructuring of monetary policy frameworks, and more equitable approaches to financial governance in emerging economies.