CBN moves to halt the buying and selling of Naira Currency

The Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has pledged to address the growing issue of Naira notes being commoditized, a practice that has become increasingly widespread in the country.
In his keynote address at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos, with the theme “Commoditization of Naira: The Way Forward,” Cardoso, represented by Fatai Kareem, the Senior Special Adviser to the CBN Governor, highlighted the serious threat posed by this trend. He emphasized that the commoditization of the Naira is not only harmful to the banking sector but also undermines the daily transactions of ordinary Nigerians who depend on the currency.
Cardoso explained that the commoditization of the Naira involves treating the national currency as a tradable asset, subjecting it to the principles of capitalism, rather than recognizing it as a legitimate means of exchange for goods and services with inherent national value.
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 tackle the commoditization of the Naira are: enhancing public engagement awareness on the responsible use of the Naira; strengthening cash management system 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 banks and the CBN.
Chairman of the Executive Committee of CHBO, Abraham Aziegbe attributed the commoditization of the Naira to severe scarcity which led to its monetisation.
He noted that over the past two years, Nigerians have faced significant challenges due to cash shortages, leading to instances where citizens pay premiums for everyday transactions. This situation raises concerns about cash availability and potential hoarding practices among banks.