Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has promised to address the commoditisation (buying and selling) of Naira notes, which has become common in the country.
Mr. Olayemi Cardoso, CBN Governor, made this pledge during a keynote talk at the inaugural Stakeholders’ Conference of the Committee of Heads of Bank Operations (CHBO) in Lagos, with the topic “Commoditisation of Naira: The Way Forward.”
Cardoso, represented by Fatai Kareem, Senior Special Adviser to the CBN Governor, stated that the commoditisation of the Naira posed a serious threat not only to the banking industry but also to Nigerians’ daily life, who rely on the currency for transactions.
He defined Naira commoditisation as a process in which the national currency is seen as a traded asset, with its intrinsic national value subject to capitalism’s principles rather than being viewed as a means of exchange for economic and valuable commodities.
According to him, “The Naira is more than just a currency; it represents our national identity.” Its stability is critical to economic growth and development. However, recent trends have seen the Naira used as a commodity rather than serving its main purpose as a medium of exchange.
“The commodification of the Naira, our national legal cash, has posed a serious threat to Nigeria’s financial ecosystem. It is a problem that impacts not only the banking industry’s operations, but also the lives of every Nigerian who uses the money for day-to-day transactions.
He said the apex bank’s strategies to combat the commoditisation of the Naira are: enhancing public engagement awareness on the responsible use of the Naira; strengthening cash management systems 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 ban.
Abraham Aziegbe, Chairman of the Executive Committee of CHBO, ascribed the Naira’s commoditisation to extreme scarcity, which led to monetisation.
He stated that over the last two years, Nigerians have encountered considerable issues due to cash shortages, which has resulted in residents paying premiums for ordinary activities. This circumstance raises concerns about cash availability and potential hoarding by banks.
