The Central Bank of Nigeria (CBN) has pledged to address the growing issue of Naira commoditization, which has become a significant threat to the country’s financial ecosystem.
The Governor of the CBN, Dr. Olayemi Cardoso, made this vow during a keynote address 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 not only to the banking sector but also to the daily lives of Nigerians. He described the phenomenon as a process where the national currency is treated as a tradable asset, subject to the principles of capitalism.
The CBN governor stressed that the Naira is not merely a currency, but embodies the country’s national identity, and its stability is vital for economic growth and development. However, recent trends have seen the Naira treated as a commodity rather than fulfilling its primary function as a medium of exchange.
Cardoso outlined the apex bank’s strategies to tackle the commoditization of the Naira, including enhancing public engagement and awareness, strengthening cash management systems, collaborating with law enforcement agencies, and promoting digital payment channels.
The chairman of the Executive Committee of CHBO, Abraham Aziegbe, attributed the commoditization of the Naira to severe scarcity, which led to its monetization.
He noted that Nigerians have faced significant challenges due to cash shortages, leading to instances where citizens pay premiums for everyday transactions.
The CBN’s efforts to address Naira commoditization come amid rising inflation, which has become a major concern for the economy. The move is expected to help stabilize the currency and promote economic growth.
The conference aimed to bring together stakeholders to discuss the challenges posed by Naira commoditization and explore solutions to address the issue.
