The Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has committed to tackling the widespread buying and selling of Naira notes, a growing issue in the country.
Speaking at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos, Cardoso, represented by Senior Special Adviser Fatai Kareem, emphasized that the commoditization of the Naira is a serious threat to both the banking sector and the daily lives of Nigerians who depend on the currency for transactions.
Cardoso explained that the commoditization of the Naira involves treating the currency as a tradable asset, subjecting its intrinsic national value to capitalist principles, instead of using it as a medium of exchange. He stressed that the Naira is not just money, but a symbol of national identity, and its stability is critical for Nigeria’s economic development.
“The commoditization of the Naira is a pressing issue that impacts not only the banking sector but also every Nigerian who uses the currency in daily life,” he said.
To address this issue, the CBN plans to increase public awareness about responsible Naira use, improve the cash management system for fair distribution, collaborate with law enforcement to enforce regulations, and promote digital payment methods to reduce cash reliance and related banking errors.
Abraham Aziegbe, Chairman of the Executive Committee of CHBO, linked the Naira commoditization to severe cash shortages in the past two years, which led to premium payments for routine transactions. He raised concerns about cash availability and the potential hoarding of funds by banks.
