CBN vows to tackle buying, selling of Naira notes

Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has vowed to tackle commoditisation ( buying and selling) of Naira notes, which has become widespread in the country.

CBN Governor, Mr. Olayemi Cardoso made this vow in a keynote address at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos, with the theme “Commoditization of Naira: The Way Forward.”

Represented by the Senior Special Adviser to the CBN Governor, Fatai Kareem, Cardoso stated that commoditization of the Naira poses a significant threat not only to the banking sector but also to the daily lives of Nigerians who rely on the currency for transactions

He described Naira commoditization as a process by which the national currency is being treated as a tradable asset with its intrinsic national value being subjected to the principles of capitalism rather than being seen as a means of exchange for economic and items of value.

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.”

He said the apex bank’s strategies to tackle the commoditization of the Naira are: enhancing public engagement awareness on the responsible use of the Naira; strengthening cash management system to ensure fair distribution across the country; collaborating with law enforcement agencies to enforce existing regulations and bring perpetrators to book; promoting digital payment channels to reduce the use of cash transactions and the need to escalate digital errors to the banks and the CBN.

Chairman of the Executive Committee of CHBO, Abraham Aziegbe attributed the commoditization of the Naira to severe scarcity which led to its monetisation.

He noted that over the past two years, Nigerians have faced significant challenges due to cash shortages, leading to instances where citizens pay premiums for everyday transactions. This situation raises concerns about cash availability and potential hoarding practices among banks.