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CBN Governor, Dr. Olayemi Cardoso, has vowed to tackle the commoditization of Naira notes, which has become widespread in Nigeria.

Speaking at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos, Cardoso emphasized that the commoditization of the Naira poses a significant threat to the banking sector and the daily lives of Nigerians.

Cardoso described Naira commoditization as a process where the national currency is treated as a tradable asset, rather than a means of exchange. He noted that this trend has led to the Naira being bought and sold like a commodity, rather than fulfilling it’s primary function as a medium of exchange.

According to Cardoso, “The Naira is not merely a currency; it embodies our national identity. It’s stability is vital for economic growth and development.” He also stated that “The commoditization of the Naira, our national legal tender, has become a critical challenge for Nigeria’s financial ecosystem.”

To address this challenge, the CBN has outlined several strategies, including.

– *Enhancing Public Engagement*: Raising awareness about the responsible use of the Naira

– *Strengthening Cash Management*: Ensuring fair distribution of cash across the country

– *Collaborating with Law Enforcement*: Enforcing existing regulations and bringing perpetrators to book

– *Promoting Digital Payment Channels*: Reducing the use of cash transactions and minimizing digital errors

Chairman of the Executive Committee of CHBO, Abraham Aziegbe, attributed the commoditization of the Naira to severe scarcity, which led to it’s monetization. 

He noted that cash shortages have led to citizens paying premiums for everyday transactions, raising concerns about cash availability and potential hoarding practices among banks.

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