The Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has reaffirmed his commitment to tackling the widespread commoditization of the Naira, a practice that undermines the currency’s integrity and its primary role as a medium of exchange. Speaking at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos, themed “Commoditization of Naira: The Way Forward,” Dr. Cardoso emphasized the urgent need to address this growing issue.
Represented by his Senior Special Adviser, Fatai Kareem, Dr. Cardoso described the commoditization of the Naira as a situation where the currency is treated as a tradable asset, subjecting its value to market forces rather than its intended purpose as legal tender. He expressed concern over how this practice has become a significant threat to Nigeria’s financial ecosystem, affecting both the banking sector and the daily lives of citizens who rely on the currency for transactions.
He stressed that the Naira is more than just a currency; it symbolizes Nigeria’s national identity and economic stability. However, the growing trend of treating the Naira as a commodity has led to challenges that demand immediate intervention. Dr. Cardoso assured stakeholders that the CBN is adopting a multi-pronged approach, including enhancing public awareness, improving cash distribution systems, collaborating with law enforcement to enforce regulations, and promoting digital payment solutions to reduce reliance on cash.
Abraham Aziegbe, Chairman of the CHBO Executive Committee, attributed the problem to cash shortages experienced in recent years, which have compelled citizens to pay premiums for cash. He noted that these challenges raise concerns about cash availability and the possibility of hoarding by financial institutions.
Dr. Cardoso reaffirmed the CBN’s commitment to resolving the issue, emphasizing the importance of restoring the Naira’s integrity and ensuring its availability and equitable use across the country. He called for collaboration among stakeholders to address the issue and reinforce confidence in Nigeria’s financial system.
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