Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has promised to address the commoditization (buying and selling) of Naira notes, which has become common in the country.
Mr. Olayemi Cardoso, CBN Governor, made this commitment in a keynote address at the inaugural Stakeholders’ Conference of the Committee of Heads of Bank 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 defined Naira commoditization as the process of treating the national currency 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 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 combat the commoditization 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.
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