Market News

BY  Nume Ekeghe

The Governor of the Central Bank of Nigeria (CBN), Dr. Oluyemi Cardoso, has introduced a strategic plan to address the growing issue of naira commoditisation, aiming to restore its integrity as a reliable national currency.

The announcement was made during the inaugural stakeholders’ conference hosted by the Committee of Heads of Banks Operations (CHBO) in Lagos over the weekend, with the theme, “Commoditisation of Naira: The Way Forward.”

In his keynote address, delivered by his Senior Special Adviser, Fatai Kareem, Cardoso noted that the commoditiation of the Naira poses a significant threat not only to the banking sector, but also to the daily lives of Nigerians who rely on the currency for transactions.

In a statement, he described naira commoditisation as a process by which the national currency was being treated as a tradeable asset with its intrinsic national value being subjected to the principles of capitalism rather than being seen as a means of exchange for economic and items of value.

According to him, “The Naira is not merely a currency; it embodies our national identity. Its stability is vital for economic growth and development. Recent trends, however, have seen the Naira treated as a commodity rather than fulfilling its primary function as a medium of exchange. The commoditisation of the Naira, our national legal tender, has become a critical challenge for Nigeria’s financial ecosystem. t is a problem that not only affects the operations of the banking industry but also the lives of every Nigerian that relies on the currency for his day to day transactions.”

In his remarks, President of Chartered Institute of Bankers of Nigeria (CIBN), Prof. Pius Olanrewaju, highlighted three critical areas for consideration, including the need to create public awareness, leveraging more technology such as the fintech revolution to enhance the value of the currency and regulatory enforcement of existing laws.

Chairman of the Executive Committee of CHBO, Abraham Aziegbe attributed the commoditisation of the Naira to severe scarcity which led to its monetisation.

He noted that over the past two years, Nigerians have faced significant challenges due to cash shortages, leading to instances where citizens pay premiums for everyday transactions. This situation raises concerns about cash availability and potential hoarding practices among banks.