• CBN vows to tackle buying and selling of Naira notes
• Commoditization of Naira poses significant threat to banking sector and Nigerians’ daily lives
• Strategies to tackle commoditization include public awareness, cash management, law enforcement, and digital payment channels

The Central Bank of Nigeria (CBN) has pledged to address the widespread commoditization of Naira notes, where the national currency is treated as a tradable asset rather than a medium of exchange. Governor of the CBN, Dr. Olayemi Cardoso, emphasized that this trend poses a significant threat to the banking sector and Nigerians’ daily lives.

Cardoso described the commoditization of the Naira as a critical challenge for Nigeria’s financial ecosystem, affecting not only the banking industry but also the lives of every Nigerian who relies on the currency for transactions. He noted that the Naira is not just a currency, but a symbol of Nigeria’s national identity, and its stability is vital for economic growth and development.

To tackle this issue, the CBN has outlined several strategies, including:

Enhancing Public Awareness: Educating Nigerians on the responsible use of the Nair Strengthening Cash Management: Ensuring fair distribution of cash across the country

Collaborating with Law Enforcement: Enforcing existing regulations and bringing perpetrators to bookPromoting Digital Payment Channels: Reducing the use of cash transactions and minimizing digital errors

Chairman of the Executive Committee of the Committee of Heads of Banks Operations (CHBO), Abraham Aziegbe, attributed the commoditization of the Naira to severe scarcity, which led to its monetization. He noted that cash shortages have caused significant challenges for Nigerians, leading to instances where citizens pay premiums for everyday transactions.