The Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has pledged to combat the widespread buying and selling of Naira notes across the country.
Dr. Cardoso made this commitment during a keynote speech at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos, themed “Commoditization of Naira: The Way Forward.” Represented by his Senior Special Adviser, Fatai Kareem, he emphasized that the commoditization of the Naira poses a serious threat to the banking sector and the daily economic activities of Nigerians.
He explained that Naira commoditization involves treating the national currency as a tradable asset driven by market forces, rather than its intended purpose as a medium of exchange for goods and services.
According to him, “The Naira is not merely a currency; it embodies our national identity. Its stability is vital for economic growth and development.” Recent trends, however, have seen the Naira treated as a commodity rather than fulfilling its primary function as a medium of exchange.
“The commoditization of the Naira, our national legal tender, has become a critical challenge for Nigeria’s financial ecosystem. It is a problem that not only affects the operations of the banking industry but also the lives of every Nigerian that relies on the currency for his day to day transactions.”
Dr. Olayemi Cardoso highlighted key measures the Central Bank of Nigeria (CBN) is implementing to address the commoditization of the Naira. These include: increasing public awareness on the proper handling and usage of the Naira; improving the cash management system to ensure equitable distribution nationwide; partnering with law enforcement agencies to enforce existing regulations and prosecute offenders; and encouraging the adoption of digital payment solutions to minimize cash transactions and streamline the resolution of digital-related issues through banks and the CBN.
Meanwhile, Chairman of the Executive Committee of CHBO, Abraham Aziegbe, attributed the commoditization of the Naira to acute shortages, which have resulted in its monetization.
He pointed out that over the past two years, Nigerians have struggled with cash scarcity, forcing them to pay premiums for routine transactions. This situation has sparked concerns about the availability of cash and possible hoarding by banks.
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