By DAYO ADESULU
The Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has pledged decisive action to address the widespread commoditization of the Naira, a practice that undermines the currency’s integrity and the nation’s financial system.
Delivering the keynote address at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos, themed “Commoditization of Naira: The Way Forward,” Cardoso outlined strategies to restore the Naira’s role as a functional medium of exchange.
Understanding Naira Commoditization
Naira commoditization involves treating the national currency as a tradable asset rather than its intended role as a medium of exchange. This shift threatens Nigeria’s financial ecosystem and everyday transactions.
“The Naira is not merely a currency; it embodies our national identity. Its stability is vital for economic growth and development,” Cardoso stated, represented by Fatai Kareem, his Senior Special Adviser.
Cardoso stressed that recent trends have seen the Naira treated as a commodity, reflecting market principles of capitalism, thereby destabilizing its national value.
CBN’s Strategies to Tackle Naira Commoditization
The CBN outlined a multi-pronged approach to curb this challenge:
- Public Awareness Campaigns: Educating citizens on the responsible use of the Naira.
- Strengthening Cash Management: Ensuring fair and efficient cash distribution nationwide.
- Law Enforcement Collaboration: Working with security agencies to enforce regulations and prosecute offenders.
- Promoting Digital Payments: Expanding the use of electronic payment systems to reduce cash dependency.
- Error Escalation Mechanisms: Establishing processes for resolving digital transaction issues through banks and the CBN.
CHBO’s Insights on the Crisis
Abraham Aziegbe, Chairman of the Executive Committee of CHBO, attributed Naira commoditization to the severe cash scarcity experienced over the past two years. He highlighted:
- Cash Shortages: Nigerians have faced significant challenges, including paying premiums for basic transactions.
- Hoarding Practices: Allegations of cash hoarding by
