CBN Governor Declares War on Currency Abuse

By Achimi muktar

In a bold move to restore the integrity of Nigeria’s currency, Central Bank Governor Dr. Olayemi Cardoso has vowed to put an end to the buying and selling of Naira notes—a practice he warns poses a serious threat to the nation’s financial stability.

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, represented by his Senior Special Adviser, Fatai Kareem, expressed deep concern about the alarming trend of treating the Naira as a commodity. He described it as a grave violation of the currency’s role as a medium of exchange and a threat to Nigeria’s economic stability.

The Naira: More Than Just Currency

Dr. Cardoso highlighted the symbolic importance of the Naira, calling it a representation of Nigeria’s identity. “The stability of the Naira is critical to our economic growth. Its commoditization undermines its essence as a medium of exchange,” he stated.

He announced the CBN’s commitment to tackling this issue head-on through a multi-pronged approach, including:

Public awareness campaigns to educate Nigerians on responsible currency handling.

Enhanced cash management systems to ensure fair and consistent distribution of cash across the country.

Enforcement of regulations to penalize offenders involved in the illicit trade of the Naira.

Promotion of digital payment systems to reduce dependency on physical cash.

Root Causes and Proposed Solutions

Abraham Aziegbe, Chairman of CHBO, attributed the commoditization trend to recent cash shortages that forced Nigerians to pay premiums for accessing cash. He stressed that the scarcity, compounded by hoarding by financial institutions, has created an environment where the Naira is no longer treated as legal tender but as a product to be bought and sold.

“Robust measures must be implemented to address cash scarcity and curb hoarding by banks,” Aziegbe noted. He called for stricter monitoring and improved cash flow mechanisms to restore public confidence.

A Call for Change

The conference highlighted the urgent need for collective action among stakeholders in Nigeria’s financial system. Dr. Cardoso’s pledge signals a new era of accountability aimed at safeguarding the Naira’s value and ensuring it fulfills its role as the lifeblood of the economy.

With a clear roadmap and a renewed commitment from the CBN, will Nigeria finally put an end to the commoditization of its currency? Only time will tell, but one thing is certain: the days of buying and selling Naira notes may soon be a thing of the past.