Dr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has committed to combat the growing issue of Naira notes being bought and sold. Speaking at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos, he highlighted that the commoditization of the Naira threatens both the banking sector and the everyday transactions of Nigerians. Cardoso was represented by Fatai Kareem, his Senior Special Adviser, during the address.
Dr. Olayemi Cardoso described Naira commoditization as the treatment of the national currency as a tradable asset, undermining its intrinsic value and primary purpose as a medium of exchange. He emphasized that the Naira is a symbol of national identity and its stability is crucial for economic growth. However, it has increasingly been viewed as a commodity, posing significant challenges to Nigeria’s financial system and impacting the everyday lives of citizens who depend on the currency.
To combat this issue, the CBN plans to enhance public awareness about responsible Naira use, improve cash distribution, collaborate with law enforcement to uphold regulations, and promote digital payment methods to minimize cash dependence.
Abraham Aziegbe, Chairman of the CHBO Executive Committee, attributed the commoditization of the Naira to severe cash scarcity, which has led to citizens paying premiums for transactions. He expressed concerns over cash availability and potential hoarding practices among banks, which have exacerbated the situation over the past two years.