The Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has pledged to tackle the commoditization of the Naira, a practice that has become increasingly prevalent in the country. Speaking at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos, themed “Commoditization of Naira: The Way Forward,” Dr. Cardoso emphasized the critical threat this issue poses to the nation’s financial stability and daily economic activities.
Represented by his Senior Special Adviser, Fatai Kareem, Dr. Cardoso described the commoditization of the Naira as the treatment of the national currency as a tradable asset rather than its intended role as a medium of exchange. He noted that this practice undermines the currency’s intrinsic value and disrupts economic growth.
“The Naira is not merely a currency; it embodies our national identity,” he said. “Its stability is vital for economic growth and development. The commoditization of the Naira, our 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 relying on the currency for daily transactions.”
Dr. Cardoso outlined several strategies to address the issue, including:
- Enhancing public awareness about the responsible use of the Naira.
- Strengthening the cash management system to ensure equitable distribution across the country.
- Collaborating with law enforcement agencies to enforce regulations and prosecute offenders.
- Promoting digital payment channels to reduce dependency on cash transactions.
- Escalating and resolving digital transaction errors in collaboration with banks and the CBN.
Chairman of the Executive Committee of CHBO, Abraham Aziegbe, attributed the commoditization of the Naira to persistent cash shortages, which have forced Nigerians to pay premiums for transactions. He highlighted concerns over cash hoarding by banks and the resulting scarcity experienced by citizens over the past two years.
The CBN’s commitment to curbing this trend aligns with broader efforts to stabilize Nigeria’s financial ecosystem and ensure the Naira remains a reliable medium of exchange.
